What is the healthcare supply chain?

Supply chain management in healthcare refers to the procurement and distribution of products and services as they move from storage to patients. To build a patient-centric supply chain in today’s competitive healthcare landscape, supply chain leaders need to think about the intersection of cost, quality, and clinical outcomes. Steve Kiewiet, a leading member of SCM operations at BJC Healthcare, is a major problem with the lack of visibility of the use of goods that are transported along the supply chain. The same problems occur to some extent in industrial supply chains, and extensive knowledge has been developed over the years to address them.

Although the structure of the supply chain is similar to any other, it is still considered one of the more complex supply chains in the world. The supply chain is also overseen by regulatory bodies such as the Food and Drug Administration and other insurance companies such as Medicare, who check that the goods used are safe. Healthcare supply chain overhauls after the pandemic may be challenging, but there are opportunities to scale. Because supply chain goals are not always aligned within an organization, the healthcare supply chain management process can be inefficient and fragmented.

The reason for this mismanagement is due to a variety of issues that all parties involved in the supply chain face. Many companies have scrutinized the billing and service part of the revenue cycle for budget cuts, but others have started to look at their healthcare supply chain management. Healthcare organizations may be able to order and stock the right sizes of gloves on a regular basis, but some patients may need more personalized medical products, such as latex-free options, depending on their health conditions. As companies attempt to standardize purchasing, patient outcomes should be evaluated based on the supplies they use, especially when multiple options are available.

As a result, the situation simply reflected how unstable the supply chain encouraged hospitals to cut corners rather than accept temporary losses for a long-term goal. Healthcare organizations need to think about product segmentation, who, what, when, and where in the healthcare supply chain, and how it impacts delivery of care. All of this means investing in supply chain technology and managing supply chain costs should be a top priority for healthcare and supply chain executives, especially as they are positioning themselves to transition to value-based care and look for ways to achieve a high-quality to provide quality care for less. The ability of successful companies to turn effective supply chain management into a source of competitive advantage suggests that there may be useful knowledge that can provide a starting point for developing a similar understanding of certain aspects of healthcare systems.

However, by driving efficiency in the healthcare supply chain, hospitals and medical practices can create significant opportunities to reduce costs across their organization.

This blog does not provide medical advice. It is intended for informational purposes only. Do not use it as a
substitute for professional medical advice, diagnosis, treatment, or disease prevention. Always seek the
advice of your physician or qualified healthcare providers for any questions you have regarding a medical
The views and opinions expressed on this blog are solely those of the original authors and other
contributors. These views and opinions do not necessarily represent those of Gabriel Nieves, LAC
Healthcare Solutions, LAC.us Staff, and/or any/all contributors to this blog/site.


Gabriel Nieves

After experiencing a variety of shortages, crises, and inefficiencies in the status quo of the procurement and distribution industry, I undertook the responsibility of building an interface for large organizations to abstract away uncertainty throughout their supply chain under most conditions.

We are focused on building a framework from which our teams of professionals on the ground can provide a new generation of procurement support and professional services for supply chain critical organizations around the nation.

We understand that the marketing process of critical supplies is a matter of national security and public safety. In this, we found our passion and mission: developing technologies, supplier networks, and platforms for the organizations that need it most.