Nathan Brandon MSSCM’s Post

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Supply Chain Strategy & Optimization/Business Case Maximization/ Global Healthcare Sourcing/Driving Efficiency & Value in Healthcare

https://lnkd.in/ehKWeUSH As we move into the new year, some of healthcare supply chain problems still persist in many instances to myopic thinking and a failure to realize the need to change paradigms. The healthcare supply chain world is changing at light speed and in most instances upstream visibility and transparency isn't keeping pace with the advancements in the downstream. Visibility is an issue especially when your supply chain starts 6500 nautical miles from our west coast, but so is transparency. It's time for our healthcare supply chain leaders to have a moment of clarity as well as honesty about where the vast majority of Class I, Class II and Class III products derive. Our mainline distributors/suppliers don't manufacture these products most of the time. They use FDA contract manufactures all over the globe but primarily in Southeast Asia. Healthcare system leaders must start asking questions like Tom Harvieux asked. Who controls the raw material? We also need to be tracking on the Chinese New Year, container rates, bunker fuel rates and contract shipping rates, logistic costs from port to the DC and with these we get a better picture of imbedded costs and risks. There are also a whole host of geopolitical issues.Secondly, there aren't limited manufacturers of most products. Take a look through the FDA website. Fluids are a little different however we need to change the way we think about how we source, procure and own Class I, Class II and Class III products. What's the definition of insanity?? Visibility and transparency work hand in hand and we must start functioning in some regard like other supply chains. Sure, health systems have a multitude of SKU's but so does a 787 Dreamliner....2.3 million. Look through the 10Q or 10K of a few on your publicly traded suppliers and find out how much manufacturing capacity they actually own. It may surprise you how little. Modern end to end supply chain theory demands that we have visibility from raw material to the final end user but we have to know every entity along every step. Take pharmaceuticals for instance. China and India produce about 60% of all API's imported to the United States. Scarier yet, 90% of all generics rely on API's produced outside the United States. Take their lead and know where your inputs are derived. We in the healthcare system setting especially those with scale need to build direct relationships with these global manufacturers. It will reduce supply chain risk, disruption, lower costs, provide for greater transparency and create greater business continuity by reducing shortages. Reach out and let's talk supply chain!! Happy New Year!! Duncan Dashiff Gene Schneller Warren Sukernek

Warren Sukernek

Fractional CMO| Global| Demand Generation| Transformational Leader| Advisor| Speaker | Digital Marketing

2mo

Very insightful, Nathan. Supporting your perspective, experts predict these #healthcaresupplychain challenges will persist in 2025, according to the American Hospital Association's 2025 Environmental Scan report.  Here are four key insights from the report:  1) 80% of healthcare providers are bracing for continued disruptions. The effects of the disruptions are already severe, with 39% of providers reporting they had to cancel or reschedule procedures at least quarterly due to product shortages.  2) On average, supply shortages are increasing the cost of providing care by $3.5 million per year for a medium-size health system. 3) Key clinical areas in which shortages are more pronounced are surgery and anesthesia (74%), emergency care (64%) and pain management (52%) making up the top three.  4) Healthcare providers are adopting strategies to improve supply chain resiliency such as AI and blockchain to track supply availability. An underused tool in improving healthcare supply chain resiliency and elasticity is the secondary supplier network and product substitution options. Cato's intelligent supply chain solution addresses this gap by providing access to a vast network of trusted suppliers. #medicalsupplychain

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