Roadmap to building an agile supply chain in healthcareRoadmap to building an agile supply chain in healthcare

The continuous availability of critical medical supplies and services, ultimately benefitting patients and healthcare providers alike, hangs on an agile and resilient supply chain. However, we must ask ourselves some hard questions, considering the uncertainties and complexities that shroud the healthcare ecosystem. How can the healthcare sector design a supply chain that is flexible and adaptable, ready to deal with unforeseen interruptions, and able to provide seamless patient care in a world of growing intricacies and uncertainty?

At a projected CAGR of 14.9 per cent over the forecast period, the global market for healthcare supply chain management is expected to increase from US$2.61 billion in 2022 to US$6.90 billion by 2029.

For the global healthcare industry to adapt to unforeseen occurrences like pandemics, natural disasters, and supply disruptions, it is essential to implement a single system for real-time inventory visibility, and digitalisation of processes, using data analytics and artificial intelligence (AI) to forecast demand and potential interruptions. It is also of great importance that continuous efforts towards risk analysis, resilient inventory management, and contingency planning are applied.

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Interestingly, putting Africa under the lens of supply chain in healthcare presents unique challenges and opportunities due to the country's diverse geography, infrastructure limitations, and healthcare delivery complexities. It is estimated that Africa produces only six per cent to 20 per cent of its medicinal and pharmaceutical products, while the other 80 per cent to 94 per cent of the continent’s medical needs are met through imports.

Considering this state of affairs, Chukwunonso Umeh, a Procurement and Supply Management professional with the Clinton health access initiative based in Nigeria, shares his opinion on how an agile and resilient supply chain within the continent can be created and managed. “The key to achieving resilience and agility in the health supply chain involves the adoption of adaptable inventory management. It is pertinent to note that maintaining excessively large inventories can tie up capital and lead to wastage or possible expiries of medicines, while too lean inventories can result in stock-outs during emergencies,” he said. “However, adopting just-in-time inventory strategies, buffer stock management, and dynamic demand forecasting can strike the right balance between efficiency and preparedness.”

Overall, specific strategies need to be employed in the African continent when creating a blueprint for an agile and resilient supply chain in the healthcare industry. To overcome the highlighted challenges, healthcare organisations and stakeholders in Africa must predict the patterns of demand and optimise inventory levels using data analytics and forecasting tools. Historical data and population health trends need to be considered as well. For example, a Nigerian healthcare provider can use data analytics to predict the seasonal increase in malaria cases and ensure an adequate supply of anti-malarial medications during peak periods.

Secondly, running regular simulation exercises to evaluate the response plan's effectiveness and pinpointing areas for development are other components to include while building a blueprint for an agile supply chain. This could be in the form of a hospital in Nigeria conducting mock drills to simulate the response to a mass casualty event, which also allows staff to practice their roles and refine the supply chain response. Finally, create thorough emergency plans that cover potential supply chain disruptions brought on by calamities, disease outbreaks, or geopolitical events.

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Mobile health technology is an area that needs to be actively explored. Leverage this for real-time data collection and monitoring of supply chain processes. Providing mobile applications to enable healthcare workers to report stock levels, track demand, and provide visibility into inventory management should also be taken into consideration.

Other options include fostering collaborations with regional vendors, making investments in programmes for capacity building, and ensuring quality control. Cutting-edge delivery techniques like drone technology to improve last-mile connectivity can ensure that urgent medical supplies reach remote areas quickly while driving the creation of opportunities to enable supply chain strategies to align with national priorities by working with government health agencies.

Collaboration, technology adoption, and community engagement play pivotal roles in strengthening the healthcare supply chain's ability to respond effectively to both routine demands and unexpected crises. With these strategies adapted, an agile and resilient supply chain can be sustained.

References available on request.

This article appears in the latest issue of the Omnia Health Magazine, read more here