How to leverage technology to enhance healthcare supply chain

In the contemporary landscape of healthcare, the convergence of technological progress, rising patient demands, and an interconnected global society have elevated the importance of efficient supply chain management. The intricate network of operations plays a crucial role in determining the effectiveness of a healthcare system. This complex system, from sourcing essential medical supplies to ensure their timely delivery, is impacted by specific hurdles.

The rising complexity of disease burden and the need for personalised treatment plans has made it imperative for supply chains to be streamlined. The COVID-19 pandemic highlighted the vulnerabilities in conventional global supply chains, prompting healthcare organisations to review their sourcing strategies. As healthcare continues to evolve, addressing the challenges with innovative solutions is crucial for delivering high-quality care and building a resilient healthcare ecosystem.

Digital transformation in supply chain

Recent innovations like the adoption of various advanced technologies in the healthcare supply chain have proved to be game changers. Tailored technology-led solutions transform both the technical and operational aspects of the supply chain. They ensure that hospitals and health systems gain visibility and control. This fosters data-driven decision-making, enhanced collaboration, and effective engagement with stakeholders, leading to better economic and care outcomes.

There are various technologies and software tools that can be used to streamline and improve supply chain management. These include:

Radio frequency identification technology: RFID tags and RFID-enabled smart cabinets help in real-time monitoring and tracking of products to streamline inventory management and prevent shortages.

Internet of things (IoT) sensors: Connected medical devices utilise their built-in sensors to transmit real-time information over the internet for analysis. This ensures a continuous exchange of data, thereby providing healthcare organisations with updated information on equipment performance and supply chain processes. Nearly 70% of all existing medical devices are expected to be connected to the internet by 2025.

Advanced data analytics: These enable healthcare providers to monitor critical healthcare supply chain metrics and usage patterns and obtain insights they can use to better forecast demand, improve efficiency, and optimise inventory.

Digital twins: A digital simulation or virtual replica of the supply chain can analyse multiple potential supply scenarios, evaluate the capacity of existing and alternative sources, and recognise prospects for process optimisation.

Adoption of electronic health records (EHR): Implementing EHR systems enables seamless data exchange between healthcare providers, suppliers, and manufacturers, thereby improving communication, reducing paperwork, and streamlining the procurement process.

Cloud-based inventory management: Cloud-based platforms offer consolidated and real-time data of inventory levels, allowing healthcare organisations to manage stock levels efficiently, avoid stockouts, and reduce carrying costs.

Also Read : Drug shortages & strengthening supply chain are critical issues for the US

Benefits of digital tech-driven processes

Digital transformation of healthcare supply chain processes offers a multitude of significant benefits. These include:

Improved efficiency and accuracy: Technology-driven processes involving computerised inventory management systems and barcode scanning, help streamline supply chain operations, reduce manual errors, and enhance overall efficiency.

Enhanced patient outcomes: Through digital technologies, healthcare organisations can provide competent care to their patients. It also empowers patients to help them make better decisions about their health.

Improved visibility and traceability: Advanced technologies like RFID and IoT allow real-time tracking and monitoring of inventory, thereby ensuring improved visibility and traceability of medical products throughout the supply chain.

Data-driven decision making: Data analytics and AI-powered algorithms help healthcare organisations gain valuable insights into demand patterns, supply fluctuations, and market trends. This facilitates informed decisions regarding procurement, inventory optimisation, and strategic sourcing.

Overcoming the challenges

While promising considerable advantages, this digital transformation also comes with several challenges. To ensure data security and privacy in the face of growing connectivity, comprehensive cybersecurity measures and regulatory compliance are required. Standardised protocols and effective data exchange mechanisms can help with interoperability issues.

Overcoming financial constraints to implement the changes in the system requires intelligent resource allocation and cultivating an adaptive culture. Regular audits and validation methods should be established to improve data accuracy. The successful implementation and management of digital supply chain technologies demand a skilled workforce. Bridging skill gaps may be addressed by investing in IT-savvy professional training and recruiting.

A robust supply chain safeguards the accessibility of critical resources, improves patient experience, and contributes to the overall efficiency and resilience of the healthcare ecosystem. Therefore, it is imperative to address the challenges and opportunities within supply chain management to achieve positive patient outcomes.

—The author, Vivek Tiwari, is Founder & CEO at Medikabazaar. The views expressed are personal.

(Edited by : C H Unnikrishnan)

First Published: Nov 1, 2023 12:40 PM IST

Home

Live TV

CNBC-TV18 Specials

Sections

Terms and Conditions

Healthy India | How to leverage technology to enhance healthcare supply chain — a CEO's take

By Vivek Tiwari Nov 1, 2023 12:49:36 PM IST (Updated)

Tags

Lok Sabha Election 2024: What rural Delhi wants

Over 50 onion farmers detained in Nashik ahead of PM Modi's visit

Why Google CEO is cautiously optimistic about the election year

Mark Mobius reveals how markets will react if NDA wins 400+ Lok Sabha seats

Share Market Live