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Home » Blogs » Think Tank » A Prescription for Healing the Healthcare Supply Chain

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A Prescription for Healing the Healthcare Supply Chain

An employee in sterile uniform packing goods in boxes. In background supervisor holding tablet and counting boxes.

Photo: iStock.com/dusanpetkovic

February 28, 2023
Samantha Betancourt, SCB Contributor

Global logistics took a traumatic hit over the last three years, and the impact lingers on even now. For many supply chain professionals, however, it was evident that vital indicators were flashing danger even before the outbreak.

The U.S.-China trade war in 2018, after years of offshoring production to low-cost countries like China, revealed cracks in longstanding, just-in-time supply chain models. When the pandemic came along, logistics capacity shortfalls combined with unexpected peaks and valleys in demand to cause shortages throughout global supply chains.

Now, we’ve turned the corner into 2023. And the healing starts. 

The prescription for getting well lies in a true partnership between healthcare logistics and the supply chain. When it comes to meeting customer needs, the two are mutually dependent. Witness the success of the healthcare cold chain in distributing COVID-19 vaccines to the world, involving the coordination of public policy, technology innovation and stakeholders at every level of the supply chain. 

The persistence and evolution of COVID variants, along with the prevalence of flu, RSV, and other diseases, will result in heightened attention to vaccine technology and the precision logistics necessary to delivering it.

The healthcare industry, along with its partners in the supply chain, must recognize their dual role in prioritizing strategy and logistics. An ensemble approach to adopting creative solutions and emerging technologies is needed to spur innovation at a rate not possible with traditional supply chains. 

There are many examples that the industry can look to for inspiration. Remarkable new temperature-controlled packaging and transportation options keep costs down for customers and reduce waste. Other innovations safeguard products as they speed to patients all over the globe, especially underserved communities.

To assure that this happens, the logistics for delivering clinical and commercial products, including diagnostics, samples, vaccines and pharmaceuticals, must focus on integrated planning and processes. 

A holistic approach to supply chain solutions for the healthcare industry involves three areas of focus:

Remember that we’re doing this for a patient. It’s not a business term, the patient. It’s a human being. Decisions about supply chain advances and innovations should always be made through one ultimate filter: patient first. Providers must ask: How can we reach more patients? How can we get life-saving treatments to them faster? How can we improve quality of life and the overall experience?

The answers lie in a blend of technology and tender loving care. On the tech side, intelligent networks and artificial intelligence are already catalyzing the movement toward at-home care and telemedicine. So, too, are technologies underlying medical devices and diagnostic tools. On the TLC side of the ledger, the human touch — the right words and respectful treatment of patients – matters more than ever before in a world increasingly driven by technology. By freeing up time and speeding healthcare processes, technology can enable a closer patient-physician relationship.

Understand that trends become traditions. Macro trends emerging from the pandemic aren’t going away. More patients than ever will be choosing home healthcare, placing e-commerce orders for meds or using telemedicine — options that seemed like science fiction just a few years ago. In response, governments and industry must collaborate on a wider scale to get patients the treatments they need, while ensuring that laws, procedures and policies are in place to support that goal.

Embrace innovation. Supply chains in 2023 need outside help to open bottlenecks and work with drug manufacturers to prevent supply shortages. The most reliable supply chains will be those that partner with healthcare providers to ensure visibility. They need to offer a single platform to choreograph the movement, condition and chain of custody of products, with every package visible at a glance. Innovation also involves people — those trained to understand and operate new processes and systems. Expertise and experience make infrastructure work.  

A commitment to these three areas of focus will ensure a progressive industry, and improve all aspects of the supply chain.

As we emerge from a turbulent and traumatic time, it’s important to build on our successes and learn from our mistakes. How healthcare brands react in the next few years to our post-pandemic world will determine the long-term success of the supply chain.

By incorporating new supply chain technologies, heightening the focus on logistics, and taking a holistic approach to macro trends in economics and healthcare, we can guide our industry into a brighter and healthier future.

Samantha Betancourt is head of marketing and strategy with UPS Healthcare.

Quality & Metrics Regulation & Compliance Supply Chain Security & Risk Mgmt Supply Chains in Crisis Healthcare

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