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
