The primary mission of logistics is to efficiently organize, plan and coordinate the transport of products from point A (manufacturer) to point B (the consumer for healthcare). Aligning and understanding the supply chain goals in healthcare involves a patient-first approach. This approach helps healthcare providers and manufacturers minimize costs while providing the best products to their consumers.
Logistics And Supply Chain Management In Healthcare:
First, let’s talk about the supply chain, and then we’ll address logistics.
Supply Chain:
It is a network of interconnected stakeholders within a business operation connected in different ways with the end product. Supply chain management aims to bring together all those networks and make an efficient end-to-end strategy that will improve transportation speed and reduce costs without compromising the quality of healthcare products.
Logistics:
Logistics involves detailed processes that outline and coordinate the complex transportation of finished products. The entire process should be safe, reliable, and time-efficient. Logistics lies at the center of any supply chain and focuses on improving the flow of information and products using innovative solutions.
Healthcare Logistics:
Many pharmaceutical providers, manufacturers, and health insurers move towards value-based healthcare. This model focuses on improving the quality of healthcare products rather than the quantity. It can be defined as a model based on compensation for outcomes.
In healthcare, when a patient comes to the emergency room, he is not concerned about what equipment or products a health provider uses or how a particular product can improve their treatment. Their only concern is feeling better and healing.
Improved Efficiency By Using 3PL Services:
Healthcare manufacturers usually have their warehouses which are inefficient and add to the company’s expenses. This is because they are often underutilized. 60-70% of the space is filled at any time, while manufacturers pay 100% infrastructure costs. This approach is unsustainable in the long run.
Third-party logistics can offer a low-cost and efficient solution for this problem. Healthcare manufacturers can minimize redundant costs, which are critical in healthcare logistics.
Consolidation Of Products:
Most freight in healthcare is more minor than truckload, so managing loads so that you can consolidate different orders or collaborate with other companies can help you save money. You can hire a third-party logistics company for this purpose. Consolidation also means fewer product touches which are sometimes required for delicate medical supplies. This reduces the chances of damage, effectively reducing losses.
Inbound And Outbound Logistics:
In healthcare logistics, managing the pickup and delivery schedules is crucial. Also, order configuration, scheduling, and proper equipment must be controlled.
A healthcare manufacturer needs to identify its goals and communicate with its carriers to improve overall performance through effective inbound and outbound logistics management.
Special Considerations:
Healthcare logistics need specific special considerations when managing raw materials and transporting the finished products. Certain healthcare products require temperature-sensitive environments so that their chemical composition doesn’t alter from manufacturer to retailer.
Temperature-controlled environments need to be provided in warehouses where products are stored and during shipping. Reefers are ideal for shipping temperature-sensitive shipments.
Conclusion:
Implementing the practices mentioned above will help you manage an efficient healthcare logistics operation while saving time and money. Focusing more resources on increasing visibility within the supply chain, improving compliance, and streamlining processes can help in improving healthcare logistics.