Understanding Supply Chain Management in Healthcare Systems

1 Running Head: SUPPLY CHAIN MANAGEMENT ASSIGNMENT Supply Chain Management Assignment Quantitative Methods in Healthcare Management - BUSI640 Lauren Crespo Liberty University Date Submitted: July 23, 2023 Respectfully Submitted to: Professor Jacinda Searles

SUPPLY CHAIN MANAGEMENT ASSIGNMENT Why is supply chain management about much more than merely cost reduction? Supply Chain Management is the "handling and oversight of all activities and processes related to both upstream vendors and downstream customers in the value chain, or making sure the appropriate supplies make their way from vendor to patient" (McLaughlin et al., 2022, p. 316). Along with getting goods at the lowest possible price, supply chain management focuses on making sure an organization is set up for success from a supply perspective, creating relationships with vendors, and the actual shipping and importing process. While cost is a large factor, supply chain management focuses on much more than purchasing the necessary goods at the lowest possible price. This operational department is involved in the tracking and inventory management of supplies for any healthcare organization while also focusing on demand forecasting, with the purpose of making sure that organization is effectively working to always serve the patient. In the healthcare sector, supply chain management also gains importance because of logistics, pharmaceutical products, and patient satisfaction, as improving healthcare quality in both the public and private sectors depends directly on its supply chain management efficiency" (Beldek et al., 2019). As the healthcare industry is all about providing the best possible care to the patient, making sure all facilities are fully stocked with the necessary tools so practitioners can do so is incredibly important. The SCM process begins with creating a relationship with the appropriate vendors to supply the correct product with the needed or desired lead times; this goes hand in hand with inventory management as product lead times can greatly impact the ordering and shipping process for the healthcare organization. Items with a longer lead time and international shipping may result in larger orders less frequently, while domestic items with a shorter lead time may call for smaller, more frequent orders. The inventory management process will differ

SUPPLY CHAIN MANAGEMENT ASSIGNMENT with each facility and organization, but this process must be aligned with that organization's specific needs and characteristics to ensure the minimization of inventory-related needs and the overall maximization of service levels. Many organizations may also implement the ABC classification system, as this can better identify the ordering needs of a specific healthcare facility. Along with the inventory management process, supply chain management also focuses on demand planning. It has been said that demand forecasting is "one of the weakest links in the global health supply chain, and many of the health supply chain bottlenecks impede accurate demand forecasting" (Subramanian, 2021). Forecasting can prove difficult if an organization does not have the proper data and reporting in place. The use of bar coding and RFID technology can help the supply chain team closely monitor inventory, triggering a needed order based on any service level data preferred by that healthcare facility. The forecasting process is an important feeder for budgeting and logistics planning in any major organization. Relating back to the COVID-19 pandemic, many organizations have focused on mid- to long-term forecasting, as this is critical for supply chain planning. As forecasting is focused on the prediction of future events, data comes into play as one can compare and identify shifts and changes in product usage and use logical data to make necessary ordering decisions. Many times, there are both internal and external factors that may cause a shift in the forecasting process, as the world and healthcare industry are always evolving. Efficiency is incredibly important in any industry; supply chain management requires extreme efficiency. In this discussion, I am reminded of Proverbs 21:5, "The plans of the diligent lead to profit as surely as haste leads to poverty" (NIV, 2018). We must be diligent and focused on this process, as many factors come into play and data can easily deceive. We must trust in our

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SUPPLY CHAIN MANAGEMENT ASSIGNMENT abilities and the Lord for guidance, as we can be easily deceived. Our trust in Him will guide us to overall success in this supply chain management process.

SUPPLY CHAIN MANAGEMENT ASSIGNMENT Resources Beldek, T., Konyalıoğlu, A. K., & Akdağ, H. C. (2019). Supply Chain Management in Healthcare: A literature review. Lecture Notes in Mechanical Engineering , 570–579. https://doi.org/10.1007/978-3-030-31343-2_50 McLaughlin, D. B., Olson, J. R., & Sharma, L. (2022). Quality Improvement in Healthcare. In Healthcare Operations Management (4th ed., pp. 315–336). essay, Health Administration Press. Subramanian, L. (2021). Effective demand forecasting in health supply chains: Emerging trend, enablers, and blockers. Logistics , 5 (1), 1–21. https://doi.org/10.3390/logistics5010012 Zondervan. (2018). Proverbs. NIV Journal the world Bible. essay

LEC - Supply Chain Management Assignment

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