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Look for cost patterns out of the standard and benchmark internally and externally.
Fremont, CA: Healthcare supply chains are often high-margin, regulated companies with stringent quality standards, such as cold-chain storage and transit demand. They are, however, frequently ripe for improvement across the board.
Inefficiencies are common due to outsourcing capabilities to logistics service providers (LSPs) without proper oversight, the cross-border nature of many items, and complicated rules frequently misunderstood.
The following are five suggestions for improving healthcare supply chains:
• Target your suppliers
Consolidating or enhancing the management of their supplier base is among the simplest areas to start. The procurement of resources, goods, and services accounts for significant supply-chain spending. LSPs, warehousing suppliers, raw-material providers, and re-packagers are examples. However, if users outsource such talents, the business must properly manage them– or they will manage users.
• Focus on performance
Define and manage a hierarchy of outcome-based supply-chain metrics that matter to business consumers. They should be wide and comprehensive, allowing tradeoff analysis among important performance measures (KPIs).
It's arguably the most significant advice for achieving meaningful and sustained progress.
Maintain a 20 percent year-over-year increase in key metrics by focusing on daily, weekly, monthly, and yearly performance through target-setting at all levels.
• Make visibility possible
Knowing where their completed items are in the supply chain at any given time opens up a world of possibilities for optimization.
• Get your important data together
Invest in the fundamentals by centralizing company data for analysis. It comprises product and SKU information, production locations, distribution centers, shipping channels, modes, suppliers, and consumers.
• Understand your costs
It may seem obvious, yet many businesses are unaware of how much and where their expenditures are. Due to the absence of a single source of truth for supply-chain cost and erroneous or missing data, this cannot be easy to analyze.
Gather statistics on the cost of goods and cost-to-serve as frequently as feasible. For benchmarking and future evaluation, group it into standard categories. Look for cost patterns out of the ordinary and benchmark both internally and externally.