Extended Supply Chain Models
September 2020 | Digital Innovation Group
Health system supply chain teams took heroic efforts to meet the unexpected need for Personal Protective Equipment (PPE) and other supplies as the COVID-19 pandemic spread. Systemic factors made acquiring enough supplies challenging, leading to widespread shortages at multiple points in the crisis pointing out weaknesses in the supply chain.
Though economic pressures of COVID-19 will limit health systems’ ability to make widespread technology investments to increase inventory management visibility and automation, developing resilience will be critical to overcoming demand variations moving forward. Further, health systems have an opportunity to leverage their supply chain to drive growth rather than function solely as a cost center. New patient-centric care models present an opportunity for the supply chain to attract new patients to the health system, drive revenue, and improve the patient relationship.
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