Why Is Healthcare Supply Chain Important?

A reliable and robust supply chain is the lifeline of the healthcare industry. It ensures that the health of this major industry remains just as fit by ensuring that medical devices, medical supplies, and medicines reach the retailer or patient smoothly. Because supply chain goals are not always aligned within an organization, the healthcare supply chain management process can be inefficient and fragmented. While these models have been successful in many cases, they have not effectively met the needs of a supply chain that involves many different companies with potentially conflicting goals.

Supply chain leaders can use this research to learn the 10 essential planning functions for pharmaceutical companies and the SCP solution functionalities needed to fulfill these capabilities. Supply chain management in healthcare is unique because every stakeholder has their own interests to protect. The aim is to increase the visibility and efficiency of healthcare supply chains and to improve agility and responsiveness of healthcare supply chains. A digital supply chain network like TraceLink’s, designed to address the complexity of healthcare supply chain management, provides organizations in this fast-growing sector with the visibility and end-to-end visibility they need through real-time information flows, communication tools and collaboration workflows to Manage a complicated and growing network of trading partners.

Gartner’s insights, advice, data, and tools help chief supply chain officers build a resilient healthcare supply chain. Technologies such as the digital supply network or cloud-based supply chain network technology make it easier for companies to link their supply chain systems with electronic health records (EHR) and other clinical systems. The lack of standardized procedures for assessing and sourcing deliveries can result in product quality fluctuations, increased risks to patient safety, higher product and shipping costs, inefficient logistics, and limited control of product availability. For large multinational companies that manufacture complex products such as automobiles, machines, or PCs, supply chains are, therefore, highly complex socio-economic systems.

Almost overnight, the COVID-19 pandemic focused on long-standing supply chain challenges and underlined the need for greater efficiency and resiliency across the healthcare industry. Due to the lack of inventory visibility and accurate forecasts that normally characterize the “just-in-time model,” stocks of PPE were quickly exhausted, and manufacturers were unable to ramp up production to replenish deliveries. A supply chain can be defined as the physical and informational resources needed to deliver a good or service to the end user. And by increasing trust and transparency across the supply network, they improve supply chain resiliency and help create a healthcare value chain that better responds to the challenges of future pandemics and other public health emergencies and can recover from them.

It refers to monitoring and managing the flow of medicines, medical devices, and healthcare services from manufacturer to patient, helping healthcare providers and patients get the drugs and treatments they need, when and where they need them.

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.