When examining the healthcare industry, several factors were identified as hindering the development of an effective supply chain and its ability to demonstrate relevance.
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The absence of a common understanding as to how interactions work across the healthcare supply chain. A key to progress is to engage in visualization and scenario building to develop mental and schematic models. The system will not be improved until we develop a common language and understanding.
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The failure of information technologies to effectively converge the various transactions that characterize the system including materials and technology, clinical efforts and finance. Associated with this is the slow transfer of supply management technologies and principles to improve efficiencies in the health sector.
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The absence of a common nomenclature and agreement regarding metrics, and the information needed.
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Misunderstanding the disparate components of the purchasing process and how they integrate.
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The inability to separate myth from reality. Is it accurate to assert that a high proportion of interventions with hospitalized patients are really wasteful? What can the industry do to provide clear and accurate information? Can inefficiencies in the hospital setting be accurately quantified?
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The inefficiencies associated with agency relationships that drive healthcare cost upwards. In many instances recommendations to patients have no apparent relationship to improving health status, encompassing both the inability to exploit synergies where they exist, and the failure to recognize true cost drivers in patient care decisions.
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The continued placement of supply chain management as non-strategic and non-central functions in major health care delivery systems.
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The failure of major management and financial tools to successfully bring about change.
