CONSUMERS HAVE EMBRACED E-COMMERCE

HEALTH CARE’S LAST-

MILE CHALLENGE
Presented By -
Prof. Manoj Kumar Tiwari
TABLE OF
CONTENTS
Issues leading to Logistic Crisis
Key Challenges in Health-care supply chain
Delivery Partners
Delivery Failures & its type
Effect of e-commerce
Proposed Solutions
 Issues leading to Logistic
Crisis:
Stress on Parcel carriers to
deliver more & more packages
Health care materials managers are looking
for help to maximize service and improve
efficiencies from their logistics partners.
Oversight issue due to more
number of deliverable packages
Consumers have to stand at the back of truck
their product through piles of boxes which
leads to more time consumption and
expiration of products
Wild Spreaded issue in Health Care
Organisations(HCO's) across the
united states
62% of HCO materials managers and 56% hospital
executives agreed that there is a need for better
management of shipping and receiving activities.
Items stockout at HCO's
Stockouts may lead to patient fatality or long-
term disability due to the delay in the medicinal
supply,
Key Challenges in Health-
Care Supply Chain

Dependence on small Cost optimization

Truckload shipments
HCOs are lacking in supply chain
mastery and innovation is their
dependence on small and partial
truckload shipments.
48% of HCO supply chain costs
could be avoided through the
implementation of improved
logistics processes.

Efficient business Growth of e-commerce

model
Operate at the lowest possible cost
while still providing the best possible
services
and omnichannel retail
The number of packages in the parcel
carrier system has increased
exponentially, placing a strain on the
transportation mode
 DELIVERY PARTNERS

This bar plot used the weighted rankings which use the weighted average of each response in order to give us
the ability to see which carrier ranks highest across all responses in terms of usage.
FedEx received the majority of rank 1 votes, however, it did not appear as often in the highest ranks of 1, 2, and 3
combined as UPS. Therefore, UPS is identified as the most often used carrier using weighted ranking.
 Delivery failures and their
type
Delayed or missing data about the delivery,
01 damaged packaging, and damaged items
also placed high, receiving almost identical
rankings.

Incorrect labeling, receiving the wrong item

02 and having items delivered to the wrong
locations are the most frequently cited
problems.

Lack of proper communication between the

03 HCO and the carrier causes the issue in
item receipt generation which leads to late
delivery or delivery to wrong location

The top delivery problems according to HCO's

EFFECT OF E- The glut of packages from consumer-
based e-commerce

COMMERCE It has affected the strict time requirements for

parcel carriers. This rush has caused drivers to not
give their employees the time necessary to fully
audit deliveries before giving their signature of
receipt.

Increase number of packaged Greater the size of the organization

deliveries implies more logistics issue
The manager attributed the size of the organization
Some HCOs are seeing the increase in
as the reason why the organization was able to
consumer package deliveries as affecting
manage shipments well.
their ability to receive orders efficiently and
effectively.
PROPOSED SOLUTIONS
How to improve?

Increase parcel carrier Improve the methods Increase Create and implement
training regarding used to differentiate communication, either universal specialized
issues unique to HCOs. between consumer direct or indirect, labeling for all HCO
packages and b2b between HCOs and packages for ease of
packages. their parcel carriers. recognition.
Thank
OPEN FOR FOLLOW UP QUESTIONS

You!