Analysing the role of supply chain management in Healthcare By Nidhi Shail Kujur - 17 November 2022

Supply Chain Management

Healthcare is an essential industry, and the supply chain is an important way to ensure that healthcare organisations can provide quality care to patients. Protecting the supply chain is therefore critical to ensuring the quality of care provided to patients. The healthcare supply chain connects various regulatory agencies, from product manufacturers to insurance companies to care facilities, to deliver essential resources, supplies, technologies, and other goods. As a result, it is a complicated but necessary component of the medical industry’s ability to provide optimal patient care.

Here are three critical ways that healthcare supply chain management saves lives:

Reduces the cost of hospital facilities

Despite increased federal healthcare spending, U.S. hospitals face a $54 billion net income loss in 2021. As a result, hospitals have eagerly sought ways to reduce budgets across the healthcare ecosystem, shifting their focus from billing and services to supply chain management. Supply chain leaders have had to cut costs as a result of hospital budget constraints. Fortunately, real-time data has assisted the supply chain in changing payment models while increasing profits.

Comprehensive hospital system data allows access to current inventory, future demand, and trends in excess purchasing and waste. The data is read by the supply chain to determine where to cut prices, refine its role in the medical field, and mitigate end-to-end supply chain disruptions. With more supply savings, hospitals can direct more resources toward patient care and other medical services.

Aids in the distribution of medicine

When it comes to the full scope of COVID-19 immunisations, the supply chain is critical in delivering vaccine access.

The healthcare supply chain begins with the production of medical items such as syringes, gloves, masks, technology, medications, and so on, and their transportation to distribution centers. Once approved, the products are distributed to hospitals, private practices, drug stores, and patients.

Without supply chain management to support COVID-19 vaccine distribution, the virus would spread and cause more deaths.

Digitalisation to improve patient care

Digital solutions have improved the supply chain in a variety of ways. As previously stated, multiple data insights aid in the analysis of the supply chain process and the reduction of hospital expenses.

Also Read | Ransomware has compromised the supply chains of more than half of the world’s companies

Cloud-based systems connect healthcare facilities to supply chain software, allowing the medical field to automate inventory management. The software further reduces the time spent on processes that were previously done by hand, resulting in better patient care.


Healthcare supply chain management is also essential for ensuring that patients receive the best care possible. Healthcare organizations can help to ensure that their patients receive the best possible care by working with suppliers to ensure that only the highest quality products are used and by managing the flow of medical supplies and equipment.

Related Article