SOLUTION: FAU New Trends of Supply Chain Management in The Healthcare Industry Discussion

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SOLUTION: FAU New Trends of Supply Chain Management in The Healthcare Industry Discussion 1

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Supply Chain Management
Institutional Affiliation




Supply Chain Management
Supply chain management refers to the process of sourcing raw materials that an
organization needs to create and launch a product needed by consumers. The primary goal of
supply chain management is to advance supply chain performance. Timely and accurate supply
chain management enables manufacturers to accurately correlate their products to the demand.
Supply chain management influences an organization positively by decreasing the cost of
insuring, shipping, and production. Supply chain management involves five main processes.
These include; planning, sourcing, making, delivering, and returning.
The primary focus of supply chain management
The primary focus of supply chain management in healthcare is to improve the
relationships between healthcare providers and suppliers. Supply chain management influences
the healthcare industry positively by influencing the suppliers, vendors, and patients. Managing
the supply chain in healthcare can be quite complicated because of the lack of an accurate
definition of the product- this is because the healthcare industry deals with service delivery and
provision of quality healthcare (Mathew et al, 2013). The process of supply chain management in
healthcare involves many complex processes and connections. Disruption of any of the processes
can occur at any point which can influence the product negatively. Additionally, medical
products go through independent parties such as manufacturers, agencies, and insurance
Supply chain management aims at patient satisfaction while maintaining good
relationships with the suppliers and financial managers. However, this can be quite difficult to
achieve in the healthcare setting. For instance, when a financial manager seeks to initiate cost-



saving measures while a supplier or provider seeks a specific type of product that goes beyond
the cost-saving measures of the financial manager- the two goals and objectives oppose each
other hence dis-alignment.
Trends in Healthcare supply chain management
The wave of supply chain management has influenced almost all industries including the
healthcare industry. For instance, the use of data analytics to drive supply chain management and
influence performance in the healthcare industry will increase. Hospitals need to accurately and

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