Role of Technology in Strengthening the Healthcare Supply Chain

What is the Role of Technology in Strengthening the Healthcare Supply Chain?

August 30, 2022 12:27 PM

Healthcare Supply Chain

What is Supply Chain in the Healthcare Industry?

The production, distribution, and delivery of medications and other healthcare stores to patients are ensured by a complicated web of systems, elements, and techniques known as the supply chain in the healthcare industry.

Even during pandemics or natural tragedies, this intricate worldwide strategy has been set up with plenty of built-in securities to ensure that medicines and other medical supplies are produced and spread promptly.

The power of the supply chain to expect, plan for, and react to probable interruptions in one or more chain connections over a varied pre-established global network is the most significant of these defenses.

Pharmaceutical quality measure developers, health systems, hospitals, pharmacies, and health insurance providers are a few of the multiple participants in the healthcare supply chain. However, manufacturers and distributors are vital to the healthcare supply chain.

We depend on manufacturers to make the medications and medical stores that form the initial connection in the supply chain in hospitals. Manufacturers manage their product flow from the site of manufacturing to wholesalers and, in some circumstances, directly to a pharmacy or hospital. The second connection in the supply chain for healthcare is the distributor.

When it comes to medical supply distribution, distributors purchase prescription medicines and other healthcare stores in huge amounts from manufacturers and carefully handle significant inventories in key sites across the region. Some wholesalers specialize in serving certain clientele, such as nursing homes, or a particular product category, such as biologics.

What is Supply Chain Management for Healthcare?

Supply chain management for healthcare is the practice of purchasing and spreading medical goods and services as they are transported from the loading port to the patient.

According to James Spann, Practice Leader of Supply Chain & Logistics at Simpler Healthcare, “Supply chain is only the managing of upstream and downstream links between suppliers and customers to deliver higher customer value at less price to the supply chain as a whole.”

Managing the healthcare supply chain is quite difficult. The problems are only exacerbated by insufficient data reporting, subpar product uniformity, increasing regulatory requirements, and a general lack of automation.

While there are many difficulties in supply chain management, the main issue is hoarding of goods, desire for particular products that are in stock, product expirations, out-of-stock issues that may outcomes in high delivery charges, theft, and an unjustified increase in stock costs based on demand. These and other issues are a factor in supply costs that exceed the budget.

Role of Supply Management in Healthcare

The goal of the supply chain in the healthcare industry is to determine departmental exposures and suggest solutions to mitigate them. It tries to pinpoint problematic areas to achieve expected health results and increases financial support for international health.

The advantages of a good supply chain in the healthcare industry have enhanced functions, efficient resource usage, content staff, successful treatment, and contented patients.

Supply management in healthcare allows proper integration of hospital departments, processes, and revenue cycles. The supply chain can be thought of as a backend application that is necessary for combining all the different activities.

Supply chain management in hospitals provides that medicines and other products are available when they are required, reduces inventory destruction, enhances patient care, and coordinates efforts across all departments to decrease human and pharmaceutical mistakes.

This can be done by taking diverse activities, such as integrating digital subsystems, optimizing operations, and incorporating technologies to enable supply chain digitization.

Why are Digital Supply Chains Gaining Such Importance?

The following problems that healthcare organizations confront are pushing them to think about making digital supply chains:

Cost reduction

The healthcare industry’s shift from a focus on volume to weight is causing providers to look for new methods to control resources and lower overall costs. These modifications to payment standards are the result of healthcare reform, as well as increasing costs and narrowing margins.

Enhancing patient engagement, care, and delivery

Hospitals may save money by keeping a productive digital supply chain, and by repurposing staff time for patient care, cutting down on wait periods, and more occasional cancelled appointments, they can enhance patient satisfaction.

Cutting out irrational variation

By automating routine processes, hospitals may free up staff time for higher-value assignments while reducing the likelihood of bad outcomes brought on by mistake and variability.

Steps to Successfully Integrate Technology into Healthcare Supply Chains

The following four stages are required to successfully invest the right technologies in the supply chain management for healthcare:


It’s necessary to first get your company and stakeholders together by describing a vision of victory geared at the long-term value, given the variety of factors and moving parts in the procedure.

This transition will often necessitate major adjustments to policies and job definitions. For the digital supply chain modification to be useful, it is important to make sure that everyone is on the same page about the overarching design, plan, and objective.


While the majority of hospitals and health plans have a high-level knowledge of where their supply chain processes stand, a full evaluation entails a detailed investigation of the processes, people, and technology.

This should be done with a special emphasis on modification and optimization in line with the end objective in mind. It is possible to create more precise plans, make adjustments faster, and execute them faster thanks to a thorough understanding of supply chain staffing and the current operating structure.


After you’ve aligned and examined every part of the digital supply chain, the answers you find assist in making a thorough value proposition that affects a scalable and sustainable future state.

To find a possibility for progress in each strategy, people, and technology area, analyze the data already available and map the supply chain processes. As an outcome, you may create a data-driven enterprise case for the future that will serve as a roadmap for substantial adjustments and advancements.


Build an all-encompassing system that connects important organizational goals to both short- and long-term operational endeavors to bring the worth proposition to life. By analyzing methods and data, it is likely to determine short-term investments and make a long-term modification road map.


The correct infusion of technologies such as AI, automation, Blockchain, data analytics, IoT and RFID, etc., can drastically enhance supply chain management for healthcare. All you require to do is follow the four stages mentioned above to understand what will work best for your requirements.

let's cut the distances today

tell us about your project


4 + 9


Visit us

Plot No-one, 249, Phase IV, Udyog
Vihar, Sector 18, Gurugram,
Haryana 122022

call us

+91 8920947884

email us

[email protected]

don't think about budget just contact us and take your business beyond the sky

book free Consultation
home icon


services icon


technology icon


blog icon


contact icon


Coronavirus Crisis whats-app