Professional Documents
Culture Documents
Assignment 5
Broward College
Date: 10-12-2023
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
Contents
1. Background and Research Questions.................................................................................3
1.2 Background..................................................................................................................4
2. Review of literature............................................................................................................7
3. Research method...............................................................................................................11
4. Research finding...............................................................................................................14
6. References.........................................................................................................................20
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
competitive advantage and cost savings associated with the execution of supply chain
management (SCM), the healthcare sector has exhibited a notable reluctance in adopting
these practices. According to a study conducted by the Centre for Studying Health System, it
was reported that hospital expenditures were 47% of the total 7.2 % rise in healthcare costs in
has been asserted that the operational expenses associated with running a typical hospital
account for 40% of the overall cost of the supply chain. As per Ahmadi, Mosadegh, and
colleagues (2022) studies, existing evaluations indicate that the prospective worth of a well-
managed healthcare supply chain varies between 2% and 8 % of hospital operating cost.
According to a study conducted by Cap Gemini, 70% of the 1,000 companies surveyed
experienced a recovery period of three months or longer for their supply networks in response
to the impact of the COVID-19 pandemic in 2020. Furthermore, the findings of the study
indicate that a significant proportion of the healthcare providers examined, specifically 40%,
had a restoration period exceeding three months in order to regain functionality in their
supply chains. (Supply Chain Challenges in the Global Healthcare Sector, n.d.). Based on the
analysis conducted by (Monroe, Teets et al. 2014), a prominent medical equipment provider,
hospitals allocate a significant portion of their expenditures, almost 30%, towards supply
43%, encountered a decline in nurse staffing levels, while 12% witnessed a reduction in the
number of doctors. These decreases were attributed to supply limitations imposed over the
course of the Covid-19 pandemic (Moosavi, Fathollahi-Fard et al. 2022). Moreover, The
healthcare business has considerable challenges in effectively overseeing its supply chain as a
result of various variables, including the diverse array of products, evolving information
outsourcing (Kwon, Kim et al. 2016). One of the primary obstacles encountered by the
HSCM is the inherent problem of attaining cost efficiency. This challenge arises from various
political disruptions, and the ongoing process of digitalizing the supply chain (Lund, Manyika
et al., 2020). The aforementioned interruptions necessitate that integrated delivery networks
adopt a reactive approach in response to backorders and recalls of crucial medical supplies.
Consequently, there is a rise in the overall cost connected with the Health Supply Chain
supply chain management (HSCM) that offer economically viable medical items while
ensuring profitability for the business sector. Moreover, Almutairi et al. (2020) asserted that
healthcare industries to offer medical goods at reduced prices, ultimately leading to the
1.2 Background
Based on the findings of Gartner (n.d.), it has been determined that SC costs account
for 37.7% of the overall patient costs in the global healthcare sector. Consequently, the
positive effects on patient outcomes, worker safety and productivity, as well as cost savings
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
for healthcare providers. Furthermore, the prompt provision of healthcare services is crucial
experiencing delays in obtaining the necessary equipment and resources. The scope of the
ranging from advanced medical gadgets and equipment of essential needs of hospital. An
efficiently functioning supply chain enables healthcare providers to allocate their attention
towards patient care, rather than expending valuable time and effort in pursuit of essential
Given the ongoing financial difficulties caused by the epidemic, the partial recovery
of patient volumes, and the possibility of an economic downturn, health institutions are
actively seeking ways to enhance fiscal responsibility and generate cost savings. Bowen et al
(2022) assert that the supply chain function is responsible for managing the external
expenditure of health systems, which can account for up to 40 percent of the total expenses.
has the potential to enhance resilience, improve care quality, increase physician satisfaction,
financial implications of supply chain operations and mitigate the risk of product shortages
and shocks in a manner that minimizes any substantial disruptions to patient care and the
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
overall delivery of healthcare services. The healthcare supply chain resilience encompasses
three fundamental components, namely agility, robustness, and visibility. Agility is a term
used to measure the ability of a supply chain to adapt to quickly and effectively, minimize the
impact of, and proactively prevent product shortages when faced with disruptions. The notion
of robustness in the domain of supply chain management pertains to the capacity of the
supply chain to efficiently manage and adjust to unforeseen surges in demand. This is
possible. Visibility pertains to the ability of stakeholders within a supply chain to proficiently
observe possible risks, employ data-driven insights for informed decision-making, and
Healthcare Supply Chain Management (HCSM) in order to mitigate the costs associated with
The hurdles encompassed several factors, such the absence of endorsement from top-
level management, incongruent or contradictory motivations, the necessity for data gathering
and performance evaluation, and insufficient knowledge on supply chain matters. In the
significance and warrants substantial research focus. This is because the healthcare industry
is confronted with the task of meeting increasingly high consumer demands while
The healthcare supply chains had undergone a process of increased efficiency and
worldwide integration in the period preceding the onset of the COVID-19 pandemic.
However, these very characteristics rendered the supply systems more susceptible to potential
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
disruptions. Amidst the global pandemic, a network of local medical suppliers and
community groups was developed with the aim of mitigating the inadequacies in the
preceding supply chain exceeds that of the locally based, decentralized model that has arisen.
2. Review of literature
The major cost of medical products is due to the cost of healthcare supply chain
significantly increases, and it can restrict the healthcare center to provide medical products at
low cost and safe lives of humans (Kwon, Kim et al. 2016). HSCM can be Inefficient due to
providers (Campling, Grocott, & Cowley, 2008). In order to resolve these issues, researchers
used different frameworks and theories. The research of the suggested HSCM framework
a catalyst for progress. Certain items that are being included into the healthcare supply chain
have the potential to contribute to the generation of novel ideas and the introduction of
innovative products. The emerging theories and frameworks used to resolve these issues are
explained below:
proposed and implement a framework healthcare supply chain and Information Systems (IS)
strategies. The proposed framework consists of two theories such as value co-creation theory
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
and complexity theory to aid with the four-stage causal model proposing relationships
between, supply chain and IS strategies, operational complexity, supply chain practices, and
lastly quality and cost of products. Result indicated that Information Systems (IS) strategies
plays a significant role for the coordinates of the patients and there exist several suppliers
throughout the healthcare process that have the potential to yield enhancements in quality,
Recent research studies have indicated that healthcare organizations should use supply
chain management (SCM) as a means to enhance the efficiency of their systems by reducing
for eliminating non-value-added components from a system. Hence, the integration of lean
principles into the supply chain appears to have the potential to enhance the aforementioned
healthcare challenges (Khorasani, Cross, & Maghazei, 2020). Smart and lean supply chain
management (SLSCM) proposed by the (Akbal & Doğan, 2023) and stated that the lean
mindset is a prominent operations management theory that has the potential to enhance
Government and Insurance, and bolster profitability. The concept of lean entails enhancing
customer value through the reduction of waste within the system and the optimization of
resource utilization. The primary objective of SLSCM in the healthcare sector is to eliminate
workers, and unnecessary processing. These inefficiencies not only incur significant costs but
proposes the integration of lean principles and discrete-event simulation. Simulation and lean
methodologies are employed with the objective of enhancing effectiveness and productivity
of service delivery processes within the healthcare supply chain. While simulation and lean
approaches have the potential to complement one other, they have traditionally been
implemented separately (Yılmaz, Yeni, Yılmaz, & Özçelik, 2023). The simulation-based lean
strategy aims to integrate simulation with lean principles in order to enhance process
improvement. (Diaz, Kolachana, & Falcão Gomes, 2023) have presented a simulation-based
lean theory framework with the aim of optimizing the common logistic practices utilized by
conducted an Analysis of Variance test to evaluate the significance of various policy factors
in the healthcare domain. The results showed that in a multi-echelon capital-intensive supply
chain system, policy variables have a significant influence on supply and demand uncertainty.
Moreover, these uncertainties are further intensified by the presence of distinct regulatory
Richard Coase proposed the transaction cost technique. The concept being explored
here relates to the process of establishing the value of goods or services in the marketplace
instead of setting a fixed price for them, as examined by Coase (1937). This phenomenon
results in increased flexibility and facilitates the implementation of a lean supply chain.
According to the findings of (Seddigh, Shokouhyar, & Loghmani, 2023). the enhancement of
service quality within the pharmaceutical supply chain can be achieved through the
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
frameworks such as transaction-cost economics has the potential to lead to a decrease in drug
supply chain management expenditures. (Jraisat, Jreissat, Upadhyay, & Kumar, 2023) argued
sustainable supply chain management, particularly in relation to the financial aspects. This is
products that are distributed through the healthcare supply chain management system.
management studied by (Shashi, 2023) using the theory of constraints. This approach offers
potential benefits such as cost reduction in operations, improved asset management, increased
Informed by the theory of constraints, the primary objective was to investigate the techniques
systems, with the ultimate goal of enhancing sustainability and profitability. The research
findings presented in this study have had a beneficial impact on social change by enhancing
the productivity of supply chain systems within the pharmaceutical industry. This
improvement has resulted in reduced costs and has contributed to the provision of more
affordable healthcare for the community. Furthermore, Moreover, the study conducted by
(Bacelar-Silva, Cox III, & Rodrigues, 2022) explored the use of the theory of constraints in
comprehending and identifying the limitations that impede the supply chain operations from
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
attaining enhanced performance. The conclusion drawn by the authors suggests that the use
of the theory of limitations conceptual framework, in combination with digital tools and
supply chain system by the pharmaceutical managers participating in the study. The
implementation of these solutions played a vital role in reducing the costs that do not
contribute value to supply chain management, hence ensuring the accessibility of affordable
medical items.
3. Research method
for healthcare organizations. In this regard, (Bentahar, Benzidia et al. 2023) employed a
healthcare supply chains. They also sought to establish a connection between these factors
and the taxonomy of environmentally conscious practices within the healthcare industry. This
study employed a multiple case study methodology, utilizing 60 interviews conducted with
nine hospitals in France, representing both the private and public sectors. The rationale for
selecting hospitals as the focus of this research stems from their substantial environmental
footprint, as they engage in various energy and water-consuming activities, while also
The data gathering process involved conducting in-depth qualitative interviews with
important managers from nine French organizations, providing the study team with valuable
access to these individuals. The authors employed the intra-case analysis method, as
suggested by (Miles, Huberman et al. 2019) to ensure the accessibility of medical supplies to
clients is a fundamental necessity for healthcare organizations. This approach aids purchasers
in the supplier selection process. The findings of studies indicated that various factors are
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
essential for effectively implementing sustainable healthcare supply chains. The identified
commitment from upper management, extensive programs for training employees, efficient
utilization of information technology, and the application of suitable metrics for monitoring
factors, including the environmental champion, purchasing group, building development, and
the incorporation of safety and green practices for healthcare supply chain management.
directness in articulating the research aims within the titles of predominantly qualitative
investigations (Thomas 2021). Therefore, the process of locating and examining qualitative
studies is typically more intricate and challenging when compared to quantitative studies.
In order to address this issue, the researchers (Bvuchete, Grobbelaar et al., 2020)
and establish a framework specifically tailored for the public healthcare sector. The author
These steps included reading and categorizing data, mapping data sources, and naming
and rethinking the framework. To facilitate the execution of the study, the researchers
plan, the implementation of the review process, and the subsequent reporting and distribution
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
of the findings. During the planning and review stage, the authors engaged in the formulation
determination of inclusion and exclusion criteria. During the review step, the author
identified the concepts that needed to be included in the search, determined the appropriate
search keywords and terms, and selected suitable databases for the research. Finally, during
the reporting and dissemination phase of data collecting, the authors successfully identified
the primary contributors to the main research, determined the geographical locations of these
contributors, and established the timeframe in which the research was undertaken by said
to ensure the selection of data that minimizes issues related to replicability, bias, and
believability. The authors conducted a classification of the research based on their publication
year in order to identify the necessity for healthcare supply chains to shift from a pure push
strategy to a pull strategy. The findings of the study suggest that the proposed framework
offers a solid basis for gaining a full grasp of the fundamental aspects that can be
The study conducted by Borges, Tortorella et al. (2019) examines the use of lean
production procedures in the healthcare supply chain and identifies the challenges that hinder
their implementation. The author employed the methodological method developed by Arksey
and O'Malley (2005), which comprises five distinct stages. The steps involved in this process
analysis, the organization of data using charts, and the subsequent analysis and discussion of
many study axes. After the formulation of the definitive definition of BP, a bibliometric
knowledge related to the authors and journals in the field being studied. In this particular
situation, the bibliometric analysis was conducted in two distinct stages. The primary
objective of the initial analysis is to investigate the scholarly journals, notable authors, and
temporal patterns of publication in the subject of BP. The study undertaken by the authors
focused on examining the key lean practices employed in the healthcare supply chain, with
the barriers that impede their successful adoption. Furthermore, an analysis was conducted on
the research methodology utilized in these investigations. The results of the analysis indicated
that out of the 57 papers analyzed in this research, 33 papers specifically concentrated on the
4. Research finding
The findings of comprehensive review studies by Tortorella et al. (2019) show that
manufacturing practices inside the healthcare supply chain management (HSCM). However,
the majority of studies continue to observe that such implementation remains limited to
certain units or value streams within a hospital. The next level of findings involves that
inefficiencies while enhancing service quality and ensuring patient safety. Moreover, the
supply chain of the organization typically offers significant prospects for enhancement,
including cost reduction and improved the key performance indicators of HSCM. In this
sense, it is found that the implementation of lean production practices and ideas has gained
significant acceptance within the healthcare industry. Nevertheless, research found that the
majority of implementations do not meet their intended objectives due to their fragmented
The study conducted by Dixit, Routroy, and Dubey (2019) about the implementation
of lean tools in HSCM. It is found that the drug distribution system and patient safety within
the HSCM are crucial factors that contribute to the enhancement of healthcare supply chain
management, as the expenses associated with supply chain management are contingent upon
Scavarda, & Korzenowski (2019). The authors find out that the coordination,
waste. Furthermore, they found that Educational program is enhanced not only to improve the
understanding of the public but also to raise societal awareness regarding appropriate waste
disposal practices. The implementation of an educational plan has the potential to enhance
sustainable visibility through several perspectives. The implementation of the Triple Bottom
Line places focusses not only on the feasibility of selling recyclable materials, but also on the
execution of measures that benefit local communities. The aforementioned efforts might be
fairs, vocational courses, and the integration of community workers into healthcare
institutions. The finding drawn from this analysis is that HSCM has the potential to enhance
the overall quality of life for the people and provide new perspectives for sustainable
program, foster corporate social responsibility, and engage with the community, in
A systematic review about the implementations of lean tools in the HSCM conducted
by the (Khorasani et al., 2020). Authors found that lean tools such as simulation lean theory,
knowledge-based view the theory of swift and theory of constraint played important role to
find out the causes of waste in the healthcare supply chain such as overproduction,
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
inappropriate processing time, inventory and underutilization and improved the efficiency
and productivity of healthcare supply chain. Furthermore, author found there is still research
gape in the healthcare supply chain management to further improved using the lean tools. The
objectives from the implementation of supply chain and lean techniques. The author
supply chain operations within the healthcare sector. At the end, authors found that flow time
of medical products in the healthcare supply chain reduces through the implementation of
The study conducted by Dixit, Routroy, and Dubey (2019) about the implementation
of lean tools in healthcare supply chain management (HSCM) concluded that the healthcare
supply chain (HSC) is characterized by significant financial and service level obligations.
The authors of the study concluded that the presence of unpredictable and high demands
inside healthcare sector posed a substantial obstacle to the successful application of lean
practices. The research has indicated that incorporating the adaptability in both demand and
suppliers of patients delivery for medical products might result in a more comprehensive
actual effects of lean implementation in the HSC. Moreover, it has been noted that the
existing literature review lacks comprehensive investigations on the obstacles hindering the
achievement of a successful lean implementation within the HSC. Moreover, it has been
ascertained that the examination of lean implementation within the external supply chain
relies on case studies conducted in the internal supply chain, with a predominant emphasis on
a single department within the hospital. The majority of existing studies primarily concentrate
on individual sectors that possess distinct characteristics. Consequently, there is a need for
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
research that presents a framework for coordinating the adoption of lean principles across the
HSC. Such research can offer valuable theoretical insights and have substantial practical
ramifications. Nevertheless, the evaluation of lean adoption within the HSC remains
undertakes that encompasses diverse value streams and encompasses both external and
internal supply chains. This framework would serve as a strategic reference for enhancing the
In their study, Khorasani et al. (2020b) reached the conclusion that there are benefits
to be gained from cost reduction and the provision of improved service quality In the HSCM.
The use of Lean Supply Chain Management in healthcare (LSCM) has the potential to serve
as an efficient solution for enhancing cost of HSCM, patient safety, instrument utilization and
pharmaceutical distribution systems within the healthcare industry. The study revealed that
the drug distribution system is a significant domain within the field of SCM. However, it is
worth noting that there is a limited amount of existing research on this particular subject
matter. Likewise, the issue of enhancing patient safety within the HSC is a significant
subject, although there exists a noticeable dearth of scholarly investigation in this domain.
The study's secondary pool revealed a mere three papers pertaining to this topic. An
additional avenue for future investigation involves the comparison of costs and potential
savings associated with the application of lean methodologies within each HSC target area.
While the advantages of incorporating lean principles in SCM have been frequently
and the associated costs are generally overlooked. In addition, it is imperative for
applications within each specific domain of lean implementation. This is crucial as existing
to explore the interconnections across these applications. Furthermore, the examination of the
consequences associated with the implementation of several lean applications in each specific
target area was beyond the purview of the current study. Consequently, the authors suggest
that comprehending the influence of multiple apps would serve as a significant expansion of
the academic areas of logistics and HSCM. The findings of this study indicate that there are
still various technological, administrative, and strategic obstacles that need to be addressed in
order to promote the effective application of DSC. Moreover, the authors reached the
implementation of technologies and their influence on the supply chain. In order to achieve a
employ a diverse range of theoretical frameworks, including skill acceptance models and
theory such as dynamic capability theory, structural project management theory, innovation
adoption theory, and stakeholders theory. Additionally, these investigations should integrate
various research methods, both quantitative and qualitative, as well as adopt different
need for researchers to priorities the examination of topics pertaining to the digitalization of
supply chains in small and medium-sized enterprises (SMEs) as well as public supply chains,
specifically those inside public hospitals, which have received limited scholarly attention.
There exists a necessity to establish a shared theoretical framework for the digital supply
this subject matter. Future research efforts should be focused on providing support to
frameworks, as well as the conduct of case studies and the creation of innovative practices
approach to examine the primary determinants that impact sustainable healthcare supply
within the healthcare sector. Several elements have been identified to greatly influence the
healthcare supply chains These factors include cost reduction strategies, regulatory
technology. The study also noted the presence of several important factors, such as the
purchasing group, integration of safety and green practices, and environmental champion
examine its developmental cycle and the circulation of flows throughout its supply chain, as
well as to assess its environmental performance. Furthermore, future research efforts may
involve doing quantitative studies to enhance the existing findings. This could entail
and validation of the concerns addressed in this study. Depending on the availability of data,
additional modelling efforts can be conducted to examine the flows associated with the green
SCM. The objective is to highlight the specific sections and aspects where significant
enhancements can be achieved during the implementation of green supply chain practices.
Running Head: HEALTHCARE SUPPLY CHAIN MANAGEMENT
6. References
Ahmadi, E., Mosadegh, H., Maihami, R., Ghalehkhondabi, I., Sun, M., & Süer, G. A.
Ageron, B., Bentahar, O., & Gunasekaran, A. (2020). Digital supply chain: challenges
doi:10.1080/1364557032000119616
Bentahar, O., Benzidia, S., & Bourlakis, M. (2023). A green supply chain taxonomy
in healthcare: critical factors for a proactive approach. The international journal of Logistics
Bvuchete, M., Grobbelaar, S. S., & Van Eeden, J. (2020). Best practices for demand-
driven supply chain management in public healthcare sector: a systematic literature review.
Bowen, B., Galceran, B. C., Karim, S., & Weinstein, W. (2022, August 23).
https://www.mckinsey.com/industries/healthcare/our-insights/optimizing-health-system-
supply-chain-performance
Borges, G. A., Tortorella, G., Rossini, M., & Portioli-Staudacher, A. (2019). Lean
Dixit, A., Routroy, S., & Dubey, S. K. (2019). A systematic literature review of
Essila, J. C. (2022). Strategies for reducing healthcare supply chain inventory costs.
https://doi.org/10.1177/160940690900800406
Kwon, I.-W. G., Kim, S.-H., & Martin, D. G. (2016). Healthcare supply chain
Khorasani, S. T., Cross, J., & Maghazei, O. (2020). Lean supply chain management in
healthcare: a systematic review and meta-study. International Journal of Lean Six Sigma,
11(1), 1-34.
Monroe, R. W., Teets, J. M., & Martin, P. R. (2014). Supply chain risk management:
Miles, M. B., Huberman, A. M., & Saldana, J. (2019). Qualitative Data Analysis, A
National Health System: the determinants to pay attention to. BMC health services research,
18, 1-9.
us/blog/what-is-healthcare-supply-chain-management
Scavarda, A., Daú, G. L., Scavarda, L. F., & Korzenowski, A. L. (2019). A proposed
healthcare supply chain management framework in the emerging economies with the
sustainable lenses: The theory, the practice, and the policy. Resources, Conservation and
Appendix A
Healthcare unit and serviced involved in the Healthcare supply chain management