Health Care Supply Chain Analysis

Decent Essays

Through a review of literature, problems have been identified in the current supply chain activities in the health care industry, impacting on the overall efficiency in the medical sector. Although the success of SCM in manufacturing industry sectors in our economy has been commended through several sources (Stevenson, 2007; Youngdahl, 2000; Gryna, 2001), it has also been frequently pointed out, by many academics, that the current application of SCM in the health care sector is extremely poor. In contrast to other manufacturing logistical structures, the health care industry is not effectively utilizing the benefits that could be derived from establishing an effective SCM (Rai, Patnayakuni, & Seth, 2006; Sing, 2006; Long, 2005). Burns and Lee (2008) suggested that implementing effective strategy, profitability, and competitive advantage and further creating an efficient healthcare SCM would have a large impact on an organization's bottom-line and service quality, while other …show more content…

The results showed that the greater the complexity of the supply chain model the more negatively it impacted performance. And factories that have used a simple supply chain model have shown to produce a more successful level of performance. Shah et al. (2008) used a field approach of study to examine how a particular health care supply chain was able to enhance performance by decreasing service time and increasing quality in a distributed network of health care providers. They concluded that the use of these principles improved efforts and the efficient coordination permitted a dramatic improvement to the supply chain performance. However, Fredenall et al. (2009) took the part of the opposition on the issue. His investigation into internal supply chain issues concluded that consensus between departments does not sufficiently improve workflows (Debashri & Asoke,

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