Effect of COVID-19 On Healthcare Supply Chain: Strategies to Watch Out
The COVID-19 pandemic has left a profound impact on world health and the economy. Every aspect of the economy was disrupted by lockdowns, and travel restrictions. In some categories, demand significantly reduced while in others, it increased dramatically. Businesses were intending to implement significant strategic modifications to the configuration and operation of their supply chains as they struggled to maintain their business operating. Hospitals and other medical facilities have been particularly heavily impacted. To meet crucial requirements, supply chain management must constantly assess their strategic and tactical positions.
The COVID-19 pandemic revealed the flaws and vulnerabilities in the health-care supply chain. Without incurring exorbitant expenses, the sector can apply various measures to prevent supply chain disruptions during major catastrophe.
Every business worldwide was impacted by COVID-19, but the healthcare supply chain was the first to receive the full severity of the pandemic. Medical supplies were in high demand, forcing healthcare suppliers to ramp up production.
Stockpiling masks and other protective clothing did not begin after the pandemic, either. Eight days before declaring COVID-19 a pandemic, the World Health Organization recommended a 40 percent increase in PPE kits. Governments and healthcare organizations started to explore more efficient ways to produce and stockpile supplies.
In reaction to the pandemic, businesses across a variety of industries have conducted risk assessments and implemented business continuity plans to try to stabilize their supply chains. Others are using 3D printing technology to deliver products closer to demand, making their supply chains more responsive. Finally, several have highlighted the importance of bringing production facilities back onshore.
Strategies to Watch Out
One of the insights 2020 has offered the healthcare industry is data supports prediction, planning and collaboration that supports manufacturers to stay ahead of potential shortfalls. Data that is credible and correct can assist recognize and address possible supply shortages before they have an impact on patient care. It promotes stakeholder collaboration, leading to increased supply chain resiliency. Finally, it can provide the information needed to make wiser, quicker decisions.
The significance of using the right information has been at the forefront of discussions among manufacturers trying to figure out how to manufacture and supply more personal protective equipment (PPE) and other critical supplies during the last year.
Get to know the three new tactics that take supply chain data management to the next level.
Forecasting data is critical for staying ahead of any shortages by scrutinizing the projections of product demand. Forecasting demand and fine-tuning forecast scenarios based on inventory, time, and transportation has become a vital process.
The benefits of forecasting data are:
- Manufacturers can deliver care effectively and efficiently by anticipating their needs of healthcare clients.
- They will have robust tools for spotting patterns and capitalizing on development prospects during peak seasons.
Visibility in the Stakeholders Data
Evaluate beyond transactional data to incorporate insights from the supplier network to enrich strategic planning. Extend visibility beyond the manufacturer’s boundaries to employ more stakeholders within the organization. Increased transparency across the industry results in improved control of production and the flow of goods, which benefits everyone in the organization. A sensible approach to tackle a healthcare crisis is to have more visibility and transparency all through the supply chain.
Mapping out the supply network critical medical supplies takes a lot of time but it assist organizations in predicting disruptive events and their impact on the supply chain.
The third strategy is to use transparency to promote greater collaboration across the industry. Collaboration provides access to a wide picture view, resulting in a more resilient supply chain and enhanced patient care delivery.
Manufacturers can be more agile and rapidly change with the appropriate data, especially during a crisis. This unique blend of hindsight and data-driven insight will be critical in establishing the best resilient supply chain that healthcare so sorely demands. Supply chain resiliency may be improved at a minimal cost by leveraging a range of digital and analytics technologies.
The potential to provide a consistent, long-term supply of necessary PPE will continue to be a challenge in the foreseeable future. To address demand more adequately during a crisis, longer-term substantial improvements to the operation and performance of healthcare supply chains will be required across various domains. To strengthen and stabilize the health-care supply chain in the future, it’s critical to first understand the challenges that contributed to the supply chain disruptions. Healthcare providers and pharmaceutical businesses must determine which strategies will assist them in mitigating supply chain disruptions during big catastrophes without incurring excessive expenditures.