Hospital supply chains haven’t been the same since the upheaval of 2020. Indeed, the issues faced by all healthcare organizations have become increasingly complex and persistent.
For example, consider reports of problems regarding the shipping of critical medical devices and drugs. A recent survey showed that 71% of healthcare leaders deal with constant order delays — that’s unacceptable to providers and patients. In addition, more than half of those leaders said their organizations had issues related to sourcing materials (revealing underlying issues at Tier I and Tier II supplier levels).
Inconsistent and difficult-to-source supplies aren’t the only procurement struggles faced by modern hospitals, of course. Other concerns include maintaining cost efficiency and keeping talent from leaving. However, all of the problems can be mitigated in some way by bringing smart, innovative technology tools and platforms into the mix.
Making Healthcare Supply Chains Healthier
Technology has already enhanced other areas of hospital operations, and with great success.
For instance, artificial intelligence (AI) has shown promise in identifying diseases through the interpretation of patient pictures. Likewise, AI-powered apps have improved the patient experience.
Consequently, bringing smarter solutions into medical supply chains makes sense. It also helps strengthen the hospital’s relationship with its surrounding community via several avenues.
1. It makes tracking of vendors more efficient and reliable.
The bigger a hospital’s supply chain becomes, the more opportunities exist for human error, outdated information, and inefficiencies. According to Nectar iQ, a leading provider of supplier management tracking technology, most modern healthcare entities work with 1,300+ vendors. In that type of ecosystem, the cost of even one error could be extraordinary.
By setting up an AI-based centralized system with clear dashboards, hospitals can manage all their vendors in one location. This allows teams to not just gather accurate data and run reports on demand, but to reduce the need to look elsewhere for insights.
Ideally, vendors can have access to some areas of the centralized system, giving them more ownership over the data they submit. Once vendor management is stabilized, hospital leaders and staff can have more confidence that they’re able to keep tabs on all their suppliers. And this helps strengthen the hospital-supplier relationship, which 74% of respondents told healthcare association AHRMM they wanted to do.
2. It standardizes onboarding among all vendors.
Standardized onboarding is another advantage of investing in smart supply chain management tools in hospital settings. If all vendors go through the same onboarding procedures — including training modules when applicable — they will all be working from the same playbook.
Unfortunately, many organizations have no systematic onboarding expectations when they bring on new vendors. This can end up being a problem for smaller vendors who might get less time, and therefore less information. It can also mean that some vendors receive incorrect information or may not fully understand their company’s supply chain role.
While it can take time to onboard every vendor systematically, the time pays for itself in the end. Plus, routine onboarding that’s handled through a centralized repository will hold historic data that can be used for auditing purposes later.
3. It makes sure vendors are aligned with the hospital’s community goals.
Many hospitals maintain specific community visions. By constructing smart, centralized database systems, they can identify which vendors support and complement those visions — and, perhaps just as importantly, know vendors fall short.
Hospitals can also gather self-reported data from both Tier I and Tier II suppliers to determine if those suppliers align with the healthcare organization’s goals. If not, the hospital can talk with the suppliers to encourage more alignment. Or, the hospital can replace vendors that aren’t a good community match.
Along these same lines, hospitals can gain visibility into the ESG metrics of their supplier population. These ESG metrics can then be leveraged to support the hospital’s own mission. But none of this is possible if hospitals don’t move past using spreadsheets — and far too many are holding onto Excel as a major organizational tool — and put trust in AI solutions.
4. It reduces the chances of major compliance mistakes.
All healthcare organizations must follow stringent regulations. Otherwise, they risk losing ground both financially and reputation-wise. In fact, HIPAA violations alone can be truly expensive for any healthcare facility.
A smart supply chain means greater oversight into what each vendor is doing. And greater oversight translates into reduced compliance risk. At the same time, the more oversight the hospital has, the faster any gaps or anomalies can be found and corrected.
Compliance is a must for a hospital and its vendors. The more compliant a healthcare entity is, the more protected its patient population (and community) will be.
5. It enhances a healthcare system’s inherent resilience.
Disruptions can and will happen, including in sophisticated healthcare systems. However, being able to know early about vendor PPE shortages, transportation issues, or other disruptions ensures that hospital personnel can make informed decisions based on accurate data faster.
Without a doubt, flexibility is a huge operational and public relations asset for healthcare entities. Everyone knew during the pandemic which hospitals were more adaptable than others.
Remember: Supply chain management extends beyond a hospital’s walls and filters into the community. The hospital that can pivot fastest will often be seen as more of a leader than the hospital that’s taken by surprise when a supplier can’t fulfill orders as intended.
Hospitals can’t continue to maintain their supply chains in the same ways that worked just a decade ago. By experimenting with smart supplier management software that can be tailored to (and trained on) their needs, hospital leaders can drive more successful relationships with all the stakeholders they serve.
