Sponsored: Premier- October 2024 – The Journal of Healthcare Contracting
Recent years have exposed the fragility and inefficiencies of the healthcare supply chain, but also the vast potential for improvement and innovation.
Healthcare supply chains need to forecast better and adapt faster to navigate a challenging and changing environment, and technology is key – from access to robust, actionable data to automating traditionally manual, cumbersome processes.
Technology enablement can support more transparent and autonomous networks, allowing the supply chain to operate as a connected and self-orchestrating ecosystem vital for resiliency, as well as competitive advantage and long-term growth. For instance, organizations that have developed digital capabilities to transform their supply chains achieved savings of 6.8 percent annually in supply chain costs, along with a 7.7 percent revenue increase, with investments paying off in an average of 22 months.[1]
Digital supply chain investments, including in artificial intelligence (AI), robotic process automation (RPA), predictive forecasting and more are increasing. According to Premier’s 2024 Supply Chain Resiliency survey[2], U.S. healthcare supply chain leaders from provider organizations said they were planning to use enterprise resource planning (ERP) enhancements (61 percent), advanced planning and forecasting solutions (44 percent), and collaboration tools (36 percent), among others, to automate and/or enhance their supply chain strategies.
These provider organizations are prioritizing supply chain technology solutions that leverage AI, RPA and demand forecasting tools, as well as real-time insights into inventory, cost variances and supply standardization. They are also seeking out tools that integrate with a hospital’s own ERP systems to help improve margins while reducing the risk of errors.
Additionally, three out of four healthcare supply manufacturers say technology is supporting increased supply chain visibility, 64 percent report better collaboration and risk management and 62 percent note improved response times to disruptions as well as cost savings. One such solution utilizes AI algorithms and data to generate predictions of future demand and identify potential shortages for specific medical products far in advance – with over 90 percent accuracy. Armed with these insights, suppliers can anticipate increased demand for planning production, managing inventory and preventing shortages.
Cutting-edge technologies that process massive amounts of data can enable timely and effective decisions, which are crucial to staying ahead. Here are three key ways technology can enhance supply chain performance:
1. Increased transparency
Technology can monitor supplier key performance indicators and track the movement of goods throughout the end-to-end supply chain, supporting product authenticity and compliance.
2. Improved efficiency and cost reduction
Technology can automate manual tasks and optimize resources – including streamlining purchasing processes, accurately managing contracts, and automating invoicing and payments – enabling significant cost savings and improved operational efficiency.
3. Enhanced resilience and risk mitigation
Technology can provide real-time visibility into supply chain operations, supporting proactive risk mitigation, predictive analytics and rapid response to disruptions that can impact patient care.
Contact Premier to learn more about our supply chain technology solutions – and how they can drive meaningful results for your organization.
Copyright © Premier, Inc., all rights reserved.
[1] www.pwc.com/gx/en/industries/industrial-manufacturing/digital-supply-chain.html
[2] premierinc.com/newsroom/blog/new-premier-data-reveals-healthcare-supply-chain-trends-challenges-and-actionable-solutions