Healthcare Supply Chain: Management And Resilience Strategy

Combat rising costs and disruption in your healthcare supply chain

Top Healthcare Supply Chain Management Companies

Gartner Healthcare Supply Chain Top 25 for 2022 identifies, celebrates, and profiles health systems demonstrating excellence in supply chain management.

Now in its 14th year, Gartner Healthcare Supply Chain Top 25 is a renowned ranking & study for the industry. The lessons from leaders are designed to accelerate the supply chain transformation needed for improving patient outcomes and controlling costs.

Complete the form to see who ranked highest for supply chain excellence in the Gartner Healthcare Supply Chain Top 25 for 2022.

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    Disruption Is Costly for Healthcare Supply Chains

    Healthcare supply chains are under pressure to drive down costs because of digital business, shifting customer needs and new competition. But recent disruptions – including manufacturer consolidation, climate events and economic and political upheaval – make achieving cost efficiency in the healthcare supply chain difficult. Disruption forces integrated delivery networks (IDNs) to be reactive to backorders and recalls of essential medical products. This increases the total healthcare supply chain cost to serve, which already averages 37.3% of the total cost of patient care. To succeed amid disruption, the healthcare supply chain must invest in longer-term solutions that provide business continuity while maintaining profitability.

    The total supply chain cost to serve for a health system averages 37.3% of the total cost of patient care.
    More than three-quarters of healthcare supply chain reorganized their structure in the past three years.

    Build Resilient Healthcare Supply Chains

    Supply chain leaders are under increasing pressure to solve operational problems so that the IDN can focus on providing quality patient care at sustainable costs. The best supply chain leaders are ready to not only respond to change but anticipate it. To build healthcare supply chain resiliency, employ preventive measures, such as:

    • Improved data analytics
    • External intelligence about the healthcare supply chain
    • Supplier visibility
    More than three-quarters of healthcare supply chain reorganized their structure in the past three years.

    Healthcare supply chain management insights you can use

    Gartner’s insights, advice, data and tools help supply chain professionals build resilient healthcare supply chains. Through resilience, you can improve patient outcomes and control healthcare supply chain costs. 

    Healthcare Supply Chain Strategy Do’s and Don’ts

    About 25% of healthcare supply chain leaders don't have a strategic plan. Discover the four simple steps to enable strategic planning in the healthcare supply chain. 

    10 Must-Have Supply Chain Planning Capabilities for Healthcare Companies

    Supply chain leaders can use this research to learn the 10 must-have supply chain planning (SCP) capabilties for healthcare organizations and the SCP solution functionalities required to meet these capabilities.

    Low-Cost Patient Engagement

    Read a best practice case study in which a healthcare provider innovated on traditional supply chain strategies to dramatically improve health and medical costs and patient outcomes.

    Interviews With Seven Healthcare Supply Chain Leaders

    Listen to interviews with the supply chain leaders at Novant Health, Intermountain Healthcare and others for front-line insight and advice against future disruption to the healthcare supply chain.

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    Gartner Healthcare Supply Chain Case Studies

    We are seeing an amazing challenge in the supply chain. We really ended up coming back to more of the work with the two folks I work with in Gartner…explaining a process that you could follow for setting up a crisis team, making sure that you’ve got your data and analytics, and then scenario planning. And then help with some fairly simple tools and templates that would be used to manage this more effectively.

    Kevin Nelson

    SVP & CPO, BD (Becton, Dickinson and Company)
    With support from Gartner, the client built an in-house business continuity plan within 8 weeks saving $150,000 in consulting fees.
    Case Study

    Implementing a Healthcare Resiliency Plan In-House

    When a leading cancer center was given a mandate to create a business continuity plan (BCP) within a short time frame, the CSCO reached out to Gartner for support. Leveraging our tools and resources, the client was able to meet their objective within the required time frame saving up to $150,000 in consulting fees. 

    Gartner Supply Chain Planning Summit

    Join the world's most important gathering of supply chain and operations executives along with Gartner experts to think big and share your valuable insights.

    The Gartner Supply Chain Podcast

    The Gartner Supply Chain Podcast explores the latest ideas and innovations for driving sustainable supply chain success. Join your hosts Thomas O’Connor and Caroline Chumakov as they uncover strategic insights and tactical tips in conversation with global supply chain experts.

    Listen Now

    Healthcare Supply Chain FAQs

    Healthcare supply chain management is the process of managing the flow of medical products, medicines and other healthcare services from manufacturer to patients, when and where they need them.

    Healthcare supply chain management involves functions, such as medical resource acquisition, inventory maintenance, supply and equipment management, and delivery of goods and services to patients.

    To improve healthcare supply chain and make it more patient-centric in today’s competitive healthcare landscape, supply chain leaders need to think about the intersection of cost, quality and clinical outcomes.

    Focus more on the healthcare supply chain costs that you can trade off, balance and optimize to improve patient care. The best supply chain leaders are accelerating investments in people and processes to bolster clinical alignment, which involves listening to and collaborating with end users.

    When that is achieved, the focus can shift to where and how to source products effectively and how to get products in the right place at the right time. Some healthcare organizations can have as many as seven different supply chains, including medical/surgical, medical devices, laboratory, pharmaceuticals, capital equipment, purchased services and food. Healthcare organizations need to think about product segmentation, as well as the who, what, when and where of the healthcare supply chain and how it impacts the delivery of care.

    The talent shortage within healthcare supply chain is a major challenge: Underperforming salaries often drive workers to leave healthcare supply chain for opportunities in other departments, at other IDNs, at manufacturers or even within other industries. To sustain talent, it’s critical that you focus on delivering against major transformation goals.

    According to Gartner research, leaders in healthcare supply chain focus on:

    • Developing core competencies (like data analytics) and next-generation skills (like clinical alignment, or the ability to listen to and collaborate with clinical end users as part of sourcing).
    • Redesigning roles away from legacy job descriptions to orient on the future of supply chain strategy.
    • Designing compensation packages and career paths that are competitive to supply chain roles in other industries.

    Leaders in the healthcare supply chain are effectively using microanalytics, i.e., data about individual procedures. First, microanalytics are gathered and reviewed with end users, e.g., patient length of stay, how likely the patient is to return within 30 days of admittance. Then, decisions are made that change the trajectory of patient care.

    Healthcare inventory management is the process that healthcare organizations use to keep track of their medical inventory, purchases, payments, etc.

    Healthcare Supply Chain Support

    Gartner provides trusted insights and objective advice to help its 2,500+ supply chain leader clients accelerate supply chain performance. We can help you build a resilient healthcare supply chain.