Predictions on future supply chain in healthcare

• What should our industry look like in 20 years?

By Malinda Wijenayake

At the start of every year, markets are inundated with ‘predictions’ about what to expect in the year ahead. Traditionally, these predictions encompass the coming 365 days. Interesting information for sure, but for an industry like healthcare in the midst of major change, we need to be thinking 10-to-20 years in the future – when healthcare will look very different than it does today. That is the reality we need to be making deliberate steps to move toward.

The healthcare industry has been subject to basic cost-cutting initiatives for some time now. But with the advent of reform and the need to make the industry more sustainable, we still have a long way to go. As healthcare tries to find new and innovative ways to cut costs, while also removing waste and improving patient care, the supply chain will play a pivotal role in this transformation.

In conversations with executives from providers and suppliers across the country, we’ve taken a long, hard look at supply chain’s role in the future of healthcare. What we learned was fascinating. These discussions clearly illustrated how the value derived from the supply chain will be instrumental in getting healthcare to where it needs to be.

The following are eight predictions from those conversations with healthcare providers and suppliers.

The supply chain of the future will be a goldmine of data: The value of clean, accurate data is undisputed, but many healthcare organisations have a long way to go to realise data’s full potential. The data coming from the supply chain will not only be transaction-focused, but also be used business-wide. The supply chain will sit on a ‘goldmine’ of outcomes data that will be used to make better decisions for patient care. As more data is collected, every department within an organisation will have an unprecedented understanding of where there is real value.

The supply chain of the future will be part of the C-suite: Thanks to the value realised across the organisation, the supply chain of the future will have a more prominent seat in the C-suite and be a linchpin in projects across different areas of the business.

The supply chain of the future will lead the standardisation of care: One of the most significant ways healthcare will become sustainable is by focusing on the standardisation of care, particularly consistency from a patient perspective. The supply chain of the future will support and guide this change, as it will sit on valuable data that can help determine not only the best price, but also the best outcomes, which will help change long-standing, inefficient processes.

The supply chain of the future will be in lockstep with clinicians: The supply chain of the future will be clinically integrated. Physicians, recognising the need to adjust their processes for the greater good of patients, will look to the supply chain for guidance, support and knowledge on product price points, outcomes, and alternatives. In turn, supply chain professionals will gain clinician trust by demonstrating the value the supply chain can deliver. Supply chain and clinicians will meet regularly to ensure continuous improvements and share ideas.

The supply chain of the future will be predictive in nature: The supply chain will not only be used to make better decisions, but also for predictive analytics. To be fluid and fast in getting products to clinicians, supply chain professionals will use data to better anticipate what will be needed, and not falter or lose speed if a product is discontinued or back ordered.

The supply chain of the future will be based on strong trading partner relationships: For years, healthcare trading partners have talked about creating more transparent and communicative relationships with each other, but few have actually done it. In the future, providers and suppliers will work toward the mutual goal of improved patient care and find ways to better align incentives to succeed.

The supply chain of the future will expand to wherever the patient goes: The supply chain will no longer solely reside within the in-patient/out-patient facility, but rather expand to wherever the patient is physically located. This is due to greater consolidation and collaboration among health systems, as well as because reducing patient-readmission rates has become more critical with the advent of healthcare reform.

The supply chain of the future will adapt to personalised medicine/informed consumers: With disruptive technologies on the horizon like 3D printers and improved imaging and diagnostics, the supply chain will adapt with new manufacturing and buying processes around ‘personalised medicine’. This is also the case with more connected healthcare consumers, who are increasingly researching the best hospitals and products for them. The supply chain of the future will eventually allow consumers to shop for products and implants like they do online or at a brick-and-mortar store.

The healthcare supply chain must be the foundation for creating long-term industry viability and ensuring quality patient care. Some forward-thinking providers and suppliers are even working to get their supply chain to this point today – and a few are very close.

The only way to realise the opportunity is to take steps forward to make it a reality. Today’s challenges are tomorrow’s transformations. The supply chain of the future begins today by prioritising integration to enable inoperability of systems; clean normalised data; and the use of analytics and improved decision making based upon this data. Here’s to the next decade of supply chain innovation it will be an exciting ride!

[The writer, Retd Wing Commander Malinda Wijenayake, BSc (Def), MBA, PGD (Scm), PGD (Mat Mgt), Dip in (Bugt), is Council Member of the Institute of Supplies and Material Management.]