April 20, 2022 – While the US economy recovers from the effects of COVID-19, the remaining issues of rising consumer demand, elevated prices, and global constraints are driving inflation for the healthcare supply chain. Dukal examined the inflation pressures on the healthcare supply chain in a recent report.
Here are the key reasons for the current inflation:
- Lockdowns and labor shortages – After businesses and cities shut down across the world at the beginning of the pandemic, it’s been a long road to recovery for many organizations. Lockdowns and surge persisted, leaving many manufacturers to scramble to maintain consistent product levels.
- Global logistical backlogs – Last year, we saw a record number of container ships that were waiting to dock in ports on the Pacific and Atlantic coasts. The report says, “With unprecedented ocean volumes from Asia and domestic land transportation stretched thin, backlogs drove many supply chains to a halt.”
- Raw materials and product shortages – All across the world, there has been a shortage of raw materials, leading to a shortage of finished goods.
With few signs of this situation improving, inflation has begun to influence healthcare manufacturing and will affect prices for healthcare services. “With rates and prices often set two to three years in advance, there will likely be a delay before consumers experience the same pressures.” Dukal is developing collaborative forecasts and safety stock programs, while using automation and IT investments to obtain real-time information to improve transparency and proactive decision-making.