by
John R. Fischer, Senior Reporter | February 07, 2022
From the January/February 2022 issue of HealthCare Business News magazine
He adds that many are taking lessons learned from the early days of the pandemic. “The PPE shortages taught us that transparency of the supply chain is critical — the same rules apply for non-PPE products. Communicating quickly and openly with our vendors is vital, so products can be routed in the best possible way.”
While supply chain leaders have traditionally relied on demand prediction and inventory optimization, many are now basing decisions around what products are affected by logistics interruptions and suppliers as well as surges and drops in patient volumes. They also are taking into account COVID-19-related contaminant risks and quality related issues among suppliers. “Facilities are working closely with manufacturers to better manage capacity utilization, identifying what to manufacture, where to manufacture and for what duration, or ramping up production at alternate supply sources that are already in place,” said Manan Shah, a consultant with CitiusTech.
Many are also looking into adopting digital tools to automate supply and distribution, many utilizing AI and machine learning, intelligent automation and IoT. These solutions can help predict consumer behavior, optimize logistics networks and support revenue management. In the long-term, they are poised to make supply chains more adaptive and allow providers, manufacturers and distributors to respond to disruptions in near-real time.
Wright, with IBM, says adding automation and AI are essential for not just completing mundane transactional activities but for offsetting the effects of staff shortages. As part of that, he recommends providers invest in cross-training to teach available staff to perform multiple jobs. “Operating without large portions of their supply chain staff can prevent hospitals from being as agile as they need to be in handling medical supply chain issues that come up, especially if they don't have the right technology and processes in place to supplement the experts.”
Reevaluating roles and partnerships
As a short-term solution, manufacturers and distributors are ramping up production and holding on to more supplies in short stock. Long term, they want to build supply assurance and diversify sources of supply, says HIDA’s Rowan. “They’re also starting to build out U.S. domestic manufacturing. Domestic manufacturing by healthcare manufacturers in 30 states is responsible for more than 14,000 jobs. We can leverage a diversified mix of domestic production, near-sourced and global-sourced so we’re not overly reliant on any one of the three in the future.”
