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Overview and Advantages of Using Healthcare Supply Chain Management



Supply chain manages the transportation and handling of resources that need to be delivered to the customer. In healthcare system managing the supply chain is a tedious process. It includes ordering the requirement of the people electronically, confirming the validity of product and perfect trading information. Medical supplies costs for 30% -40% of a hospital's bill for patient. Billions of dollars are lost annually due to absence of transparency, wasted resources and economical inefficiency. Proper healthcare supply chain management can help save much of the time and will give better transparencyin the financial transactions. 

Market for Healthcare Supply Chain Management

The Global Healthcare Supply Chain Management Market was evaluated at USD 1.45 Billion in 2016 and is expectedtogarner USD 2.22 Billion by 2021, while registering at a CAGR of 8.9% during the forecast period. Market driving factors for the healthcare supply chain management arethe demand for better management systems, demand for better patient care, increasing use of cloud technology, hospitals’ efforts to improve their efficiency and their tendency to increase profits. However, high costs of software and technology needed to employ better management methods and long delays in the installation of such systems are hindering the growth of market to some extent.

Benefits of Healthcare Supply Chain Management

  • Reduction in costs:By automating the process of purchasing, placing orders and receipts, the manual calculation error will be removed from the dealings which generally result in higher costs. 
  • Increased profits: With the ability to join with and contact trading partners through a supply chain, the number of accurate and efficient transactionswill improve. 
  • Focused patient safety: Patients also can demand specialized equipment and devices in the healthcare supply chain management process. Some patients may require customized medical products, such as latex-free gloves, or they might be allergic to a substance which could be replaced with something else, depending on their health status.
  • Greater efficiency: Supply chain can provide information on various supply levels, dramatically increasing the efficiency of the market.
  • Better differentiation between different products, their markets and consumers: Identifying the products, what a consumer is purchasing and at which price, with the efficient data capture the medical supplier market will grow.
  • Better coordination with global players and across the health care providers: Regional medical centres are under provisioned in most of the cases, with the supply chain they will have the tools and resources to operate at their full efficiency.


Getting all medical facilities to agree on a centralized system such as a healthcare supply chain is the key to optimize and improve the healthcare system. To achieve this, the providers need to work together, to reduce costs and waste resulting in increased efficiency.

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