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Health care facilities and supply chain management

Kirjoittanut: Frida Ateh - tiimistä Kaaos.

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Frida Ateh
Esseen arvioitu lukuaika on 4 minuuttia.

Health care facilities and supply chain management 

Health care facilities and supply chain management are critical components of the healthcare industry. The efficient management of medical supplies and equipment is essential to ensure the timely delivery of high-quality patient care. According to a report by Global Market Insights, the global healthcare supply chain management market is expected to exceed $3.3 billion by 2025, reflecting the growing demand for supply chain management solutions in the healthcare sector. With the increasing complexity of healthcare systems and the rising demand for healthcare services, healthcare providers are facing significant challenges in managing their supply chains (Lee, Hea L 2004,).

Healthcare operation and supply chain management also involve effective management of healthcare resources which include people, facilities, equipment, and supplies, to ensure the delivery of high-quality healthcare services to patients. The goal of this organization is to optimize the use of resources while minimizing waste, reducing costs and improving patient outcomes. Which requires a coordinated effort across multiple stakeholders, including healthcare providers, suppliers, manufacturers, distributors, and regulatory agencies.  

Healthcare operation and supply chain management involves a wide range of functions that are critical to the efficient and effective delivery of healthcare services. Some of the key functions include: 

Inventory Management: 

Inventory management plays an important role in healthcare operation and supply chain management since it refers to the materials and supplies used to deliver patient care such as drugs, medical equipment, surgical supplies, and other consumables. They ensure that healthcare providers have the equipment they need to deliver high quality care to patients. Without proper Inventory management, healthcare facilities may run out of critical supplies, which will lead to a delay in care, lower quality care or even harm to the patient. This equipment is often expensive, and excess inventory can tie up capital which leads to waste, whereas if it was, such risk will be avoided thus improving efficiency, and lower costs.  

Inventory management is important for supply chain resilience in times of crisis such as natural disaster or pandemic. They ensure that healthcare was provided with the supplies they need to respond to during emergencies. Inventory management is a critical component of healthcare operation and supply chain management which requires careful planning, tracking, and optimization to ensure that healthcare providers have the right to supply the rightful equipment at the right time and cost. 

Demand plan 

Demand plan plays a major role in healthcare operation and supply chain management which involves forecasting the expected demand for healthcare services, products, and supplies over a specific time frame, which helps healthcare facilities and suppliers to plan for and manage their inventory, resources, and operations more effectively. In addition, it ensures that healthcare providers have the resources they need to deliver high quality care to patients and equipment to meet the needs of patients to avoid stock out or delay in care. 

Demand planning helps to improve supply chain resilience by anticipating demand and planning for potential disruptions such as supply chain disruptions or Unexpected increases in patient demand, which requires careful analysis, collaboration, and optimization to ensure that healthcare providers have the resources they need to deliver high quality care to patients. 

Logistics and Distribution 

They are responsible for ensuring that healthcare products, equipment, and supplies are being transported from manufacturers or suppliers to healthcare facilities and to patients in a timely, efficient, and cost-effective manner. Without such facilities, healthcare may experience delays in receiving critical supplies or equipment, which can lead to lower quality care or even patient harm. Also, they help to lower costs by optimizing the transportation and distribution of healthcare products and supplies which will go a long way to reduce waste, lower transportation costs, and improve supply chain efficiency. 


Sustainability in healthcare operation and supply chain management refers to managing operations and supply chains in a way that promotes environmental, social, and economic sustainability. Environmental Sustainability involves reducing the environmental impact of healthcare operations and supply chain, such as reducing greenhouse gas emissions, Minimizing waste, and conserving natural resources which can be achieved by implementing energy efficient practices, using eco-friendly product, and reducing the use of single use plastics. 

On the other hand, social Sustainability ensures that healthcare operation and supply chain promote social responsibility and equity that include measures such as promoting fair labor practices, providing access to healthcare services and products for underserved communities, and supporting local communities through community engagement and philanthropy. While economic Sustainability is out to make sure that healthcare operations and supply chain management are financially viable in the long run which can be achieved through measures such as reducing waste, optimizing Inventory management, and implementing cost saving measures. 

Electronic Health Records (EHR) 

This is a critical tool for healthcare operation and supply chain management, and requires careful planning, implementation, and maintenance to ensure that they are effective and secured. EHRs help to improve the quality of patient care, streamline operations, and optimize supply chain management, thereby contributing to a more efficient and effective healthcare system. They also provide real time information on patient needs, inventory levels, and demand to help inventory management and reduce waste. 


Supplier Management is the process of selecting and managing suppliers of medical supplies and equipment. This includes negotiating contracts, monitoring supplier performance, and developing relationships with suppliers 

Quality Control: The purpose of this is to ensure that medical supplies and equipment meet the necessary quality standards. This involves testing and inspecting products to ensure they are safe and effective. 

Cost Control: The process of controlling costs associated with healthcare operations and supply chain management. This includes managing Inventory levels, negotiating prices with suppliers, and Minimizing waste. 

Risk Management: This means identifying and mitigating risks associated with healthcare operations and supply chain management. This involves developing contingency plans for potential disruptions and implementing measures to prevent and manage risks. 

All these functions work together to ensure that healthcare facilities have the necessary resources to provide high-quality care to patients while controlling costs and managing risks. 

In conclusion, health care operations and supply chain management are critical to the effective delivery of health care services. A strategic approach to operations and supply chain management involves identifying key objectives, optimizing resources, anticipating future demand, and establishing standards and procedures to ensure safe and effective care. By implementing these principles, health care organizations can improve the quality of care they provide and ensure that patients receive the services they need to maintain their health and well-being. 




Kros, JF, & Brown, E. (2016). Health Care Operations and Supply Chain Management: Strategy, Operations, Planning, and Control. John Wiley & Sons. 

“Healthcare Supply Chain Management Market to exceed $3.3bn by 2025.” Global Market Insights. https://www.gminsights.com/pressrelease/healthcare-supply-chain-management-market

Chopra, Sunil, and Peter Meindl. Supply Chain Management: Strategy, Planning, and Operation. Pearson, 2016.

Lee, Hau L. “The Triple-A Supply Chain.” Harvard Business Review, vol. 82, no. 10, 2004, pp. 102-112.








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