The image above is a visual presentation of a healthcare supply chain. It is vertical in order to depict the relationships between each of the players. In order to gain a better understanding of this supply chain in particular consider a large body of water such as a river or lake. Typically, it is sustained by multiple streams that flow into it from various directions. The large body of water and the streams are a part of a system. If the output of the stream stops or change significantly than the large body of water will be affected. In the healthcare supply chain, the large body of water represents the end users. The manufacturers, distributors, and suppliers are all streams that contribute to the presence and quality of products. In the business world they function in a business to business market because their products are not directly available to consumers. Understanding the role that each of the links play is integral to viewing the supply chain as a system. Manufacturers/Suppliers The companies in this group provide the medical supplies needed to provide care to the end users. They are located at the top of the supply chain because their products are necessary for the existence of the other players. In fact, innovation in the industry is reliant on their output (source). Suppliers are powerful because they set the prices. There are many companies in this classification and a large number of them sell a wide variety of products in the market. Pharmaceutical
The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.
Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.
Main goals as a health care organization to optimize but also to achieve the flow of products and service with limited resources. First step is finding a local vendor for supply chain. The local vendor of choice is McKesson, they operated and have local warehouse but are a large supply chain organization that has a large online present with maintaining and providing medical supplies. They provide services with software offer by their organization. In which the operations strategy for the organization is to develop high quality invoice tracking and ordering system with using the McKesson’s software. All equipment and distribution of supply is to be maintained by supply staff with using the system to track orders, placing orders and obtain invoices from inside the EMS Station. Marketing team would have to build a strong relationship with the local McKesson warehouse staff and local hospital home medical oxygen supplier, by promoting and build an effective teamwork with them to maintain quality supply management. For follow up services, Operational manager must check on supply staffs on how well they are keeping and maintaining all equipment, and supplies for all trucks, find innovative ways to make improvement with orders, invoices and maintaining supplies to meet the needs of each ambulance on the streets
A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.
Supply chain is the process of getting a product from point A to point B. With how advanced technology has become, there are more ways than ever to transport the product. The goal of a supply chain managers is to get the product into their hands. The mangers negotiate with the suppliers to purchase the raw materials. Then, they ship those materials as efficiently as possible through trucks, ships, and trains. Then finally, they do everything they can to make the product gets to the store on time so the consumer can enjoy the product. Why is this so important? Well, without it, we as the consumer wouldn’t enjoy that fresh produce that Kroger provide or the convenient drive thru pharmacy. Everything we own is because of a company’s supply chain, and without these supply
The bargaining power of suppliers is high in the healthcare industry. It is critical to note that hospitals highly rely on various suppliers
This case presents a company, known as Westminster and currently considered as one of the biggest manufacturer of health products. It consist of three separate companies, in which each of them manufactures their own and unique products, with a decentralized management that allows for an overall outside view of what is for best the future of this enterprise. Top managerial personnel is currently re-evaluating and assessing the company’s supply chain and how they could develop a strategies that would facilitate revamping such system.
Many companies produce products from parts of raw materials that are purchased from suppliers, till these products are reach the markets and presented for the customers, then you have the supply chain starting from the purchase of raw material from different areas , through the manufacturing steps and stages till is being sold by the consumer. Some of supply chains are well defined and easy to determined, while there are other supply chains complex to analyze. However, supply chains vary with the size of the facility such as; complexities, performance, abilities, flexibility, quality, speed, dependability and cost of preparing goods for manufacturing and the chain length distribution. So the supply chain is a network of wholesalers, retailers, distributors, workers in the transport, storage facilities, suppliers, and manufacturers who participate in the production, delivery and sale of the product to the last consumer. A supply chain is a group of facilities that coordinate activities among it and to avoid the competitors. Moreover, to ensure the supply chain management is operating efficiently and generating the highest level of customer
Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.
2. Bargaining Power of Suppliers: Private practice physicians, healthcare professionals and hospitals are the key suppliers of healthcare industry. The power of suppliers is high because firms must come into
A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of
The supply chain is all parts of the company that fulfill a customer’s order. This can include direct or indirect contact with the customer. Suppliers, manufacturers, distributors, and retailers make up some of the parts of a supply chain that are needed to fill a customer’s order. One of the major parts of the supply chain is the transportation of the raw material or the finished product. Transportation can be done many ways, which include truck, pipeline, air, water, package carriers, rail, and intermodal. Air transportation can have its advantages and its disadvantages.
The relationship between a manufacturer and a distributor is a crucial part in the success of a business alliance or partnership. It is necessary to pay close attention to the relationship between manufacturers and distributors in terms of trust, alliances and conflict. Manufacturers and distributors should select each other appropriately and wisely because each member of the supply chain has different expectations for the other. The most common two paths for a manufacturer to enter the market through distribution are exclusively and non-exclusively. Information on relations and channel paths is significant because it will be easier be able to include them in my other projects and classes throughout the rest of academic and professional careers.
3. Highly refines supply chain that can cater to high demand of orders: The efficient coordination of the suppliers of
A crucial component of the supply chain is to have correct and accurate information as long as an open line of communication in case assistance is needed. Another crucial role in a successful supply chain is the role of management. Management is able to help things run smoothly and assist in any problems that might occur. The advancement of the business world has caused a change in how managers operate. Management can be in charge of overseeing a large number of suppliers and consumers at any given time. They are responsible for managing the supply chain and ensuring that the consumers get what they need. A firm’s good supply chain management is crucial to the success of the business and how they operate. A firm has to improve the flow of information through the chain, accurately depict business models, and efficiently manage the production, development, and delivering of goods. A successful supply chain is able to work seamlessly with other parts of the business such as sales and marketing, engineering, business development, and program management. A good supply chain management can be the difference for the success of all parts of the business.