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Benefits of Supply Chain Management in the Healthcare Industry

Supply chain management is a vital process for any industry to run efficiently. Hospitals and healthcare sectors have been working hard to curb the coronavirus threat in the last two years. They must also adapt to the latest, most sophisticated technology available to work with. The use of technology and supplies in hospitals is at an all-time high. In such a scenario, every healthcare institute must be fully modernized in terms of supply chain management practices.

There are tremendous advantages to having such systems in place that can automate processes and streamline the flow of the chain. According to a survey of 100 hospitals, more than half of them are still using old and manual techniques of keeping track of the supply chain like excel sheets etc. By streamlining and standardizing their supply chain practices, hospitals can save about 17% more!

Healthcare industry supply chain practices are different and more complex than other industries. At each stage of the chain, different stakeholders have different goals and agendas to accomplish. The procurement and distribution of products and services to reach the final patient is a process in which there are many hoops to jump through.

In the medical industry, a supply chain deals with common issues like the expiration of products, demand for specific types of inventory, stocking issues, increase and decrease in demand. Other many reasons are what contribute to costs and out-of-budget supply costs. Challenges faced include inaccurate data reporting, bad product standardization, and lack of automation in processes. This lacking just increases the chances of human errors.

To solve this problem, modern supply chain management solutions must be employed by hospitals and other stakeholders involved in the supply chain to maximize profits and provide better, more efficient healthcare support to the needy. Automating repetitive processes to avoid manual inputs and human errors is efficient to improve the supply chain. The many benefits include streamlined inventory management, waste minimization, and, most importantly, improving business decisions by making informed and well-educated, data-based decisions that are more likely to succeed. This is why the implementation of various SCM software is a must for the industry.

Let’s look at a list of things to look for when upgrading your supply chain practices through SCM software.

1. Communication: Communication of the entire process must be clear and transparent on both fronts; financial and clinical.

2. Ease-of-Use: The supply chain has a lot of personnel involved in the process. This includes managers, operators, care providers, suppliers, etc. The system should be easy to understand for all levels of workers and managers on the chain.

3. Scalability: For both single and multiple location facilities, scalability should always be a goal. How well can you increase the size of your business, and how? The right SCM software will help you realize the decisions you must make to scale better.

4. Flexible Design: Ease of use and understanding is everything. The design of the SCM software should be accommodating of everything, including compatibility with different devices, easy-to-understand user interface and easy language.

5. Reporting and Analytics: Real-time inventory reporting and calculation is an essential part and reason for having SCM software in the first place. You should also have your hands on multiple analytics to keep track of performance and improvements.

6. Superior Service: Your SCM software should be able to provide you with an efficient workflow design and define implementation requirements. It should also provide support before and after implementation.

If you require professional assistance with your Supply Chain Management needs, contact ARK India today! We have a plethora of services in the SCM department that will help you streamline processes and increase profits!