Transforming Healthcare Supply Chains: Insights from the 2023 Black Book Survey
The landscape of healthcare supply chains is undergoing a significant transformation as over 5,000 materials management and purchasing professionals engage in a comprehensive series of supply chain IT user polls. In response to formidable challenges that threaten the financial viability of providers, there is an increasing imperative to adopt advanced technologies and innovative strategies.
Addressing Complex Challenges:
The convergence of multiple challenges, including medical revenue losses, staffing shortages, inflationary pressures, and a gradual rebound in inpatient volumes, has contributed to a notable uptick in total health system expenditures, exceeding 13% during the second quarter of 2023. The compounding financial pressures faced by providers have triggered a heightened demand for advanced technologies to rectify inefficiencies within supply chain systems and enhance underperforming services. An overwhelming 90% of the collective healthcare industry's C-suite acknowledges the urgency for these technological advancements.
Comprehensive Survey Insights:
Black Book™ conducted an extensive survey, amassing responses from 5,220 professionals encompassing health system materials managers, executives, staff, analysts, consultants, and directors hailing from diverse hospitals and medical organizations. The survey aimed to pinpoint the leading vendors within the realm of sought-after supply chain software, technology platforms, and systems. Additionally, it sought to assess the gaps and pressing needs in materials management technology administration.
Collaboration and Resilience:
As emphasized by Black Book's founder Doug Brown, collaboration with vendors and suppliers has become indispensable in ensuring a smooth flow of goods and mitigating the risk of shortages. This collaborative approach has ushered in improved visibility into inventory levels and demand fluctuations. The disruptions brought on by the pandemic have underscored the vulnerabilities within healthcare supply chains, prompting a heightened emphasis on fostering resilient supply chains capable of navigating unforeseen disruptions and implementing diversified sourcing strategies.
Key Survey Highlights:
The annual Black Book survey yielded several key findings that underscore the industry's direction:
Prioritizing Digitalization and Technology Integration: As healthcare organizations progressively embrace digital solutions to revamp their outdated supply chains, 58% of hospital materials managers are prioritizing digitalization and technology integration in CY2024. Blockchain, Internet of Things (IoT) devices, and AI-driven analytics are among the technologies being adopted to optimize transparency, traceability, and overall efficiency.
Rising Utilization of Data Analytics: The utilization of data analytics and predictive modeling in healthcare supply chain management is on a consistent ascent. An impressive 93% of materials managers acknowledge the role of these tools in forecasting demand, identifying potential disruptions, and making informed decisions to enhance inventory management.
Focus on Sustainability and Ethical Sourcing: The survey indicates that 74% of participants observe an amplified focus on sustainability and ethical sourcing within healthcare organizations. Initiatives such as waste reduction, environmentally friendly packaging, and ethical labor practices are emerging as top priorities.
Navigating Personalized Medicine and Advanced Therapies: The advent of personalized medicine and advanced therapies necessitates supply chain adaptations. A significant 90% of materials management respondents recognize the need to tailor supply chains to accommodate the unique requirements of these treatments.
Patient Demand for Transparency: The demand for transparency from patients has emerged as a challenging aspect of healthcare supply chain management. Consumers' desires to understand the origins and responsible sourcing of medications and medical devices pose a developmental challenge for materials managers.
Emphasis on Last-Mile Delivery: Last-mile delivery of healthcare products has assumed heightened significance, particularly in the context of telemedicine and remote care. For 77% of materials managers, ensuring efficient and reliable delivery to patients' homes and alternative healthcare facilities ranks as a primary focus.
Immediate Technology Needs: Black Book's findings highlight the immediate technology needs of health system materials managers. Concerns encompass the absence of advanced analytic tools, strategic disruptions arising from unsuccessful supply chain software integrations, and outdated dashboard and decision support systems.
Digital Transformation Imperative:
The survey's insights resonate strongly with senior leaders, with a notable 69% emphasizing the absolute necessity for digital transformation in their supply chain divisions. This transformation is viewed as essential for both the long-term survival and commercial stability of healthcare organizations. However, only a marginal 6% of respondents have fully initiated comprehensive strategies for extensive materials management IT improvement.
Solutions ranking highest by supply chain client experience among 18 qualitative, key performance indicators for 2023 by survey participants are:
PURCHASING OPTIMIZATION & SOURCING SOLUTIONS
AMAZON BUSINESS - HEALTHCARE
GROUP PURCHASING ORGANIZATIONS & COALITION SERVICES
VIZIENT
BENCHMARKING & COMPARATIVE ANALYTICS
AXIOM BY SYNTELLIS PERFORMANCE SOLUTIONS
AUTOMATED ASSET TRACKING RTLS SOLUTIONS
ZEBRA TECHNOLOGIES
SUPPLY CHAIN MANAGEMENT CONSULTING & ADVISORY
BLUEBIN INC
COST ACCOUNTING & FINANCIAL DECISION SUPPORT SYSTEMS
AXIOM BY SYNTELLIS PERFORMANCE SOLUTIONS
MATERIALS MANAGEMENT IT IMPLEMENTATION & CLOUD SOLUTIONS
TECSYS
HEALTHCARE SUPPLY CHAIN MANAGEMENT SOFTWARE SOLUTIONS
CURVO
ENTERPRISE DOCUMENT MANAGEMENT SOLUTIONS
STREAMLINE HEALTH
HEALTHCARE ERP
WORKDAY
SPEND MANAGEMENT SOLUTIONS
SYMPLR
CREDENTIALING SERVICES
VERGE RL DATIX
MEDICAL INVENTORY & WAREHOUSING TECHNOLOGY
TECSYS
VALUE ANALYTICS SOLUTIONS
PREMIER INC
CLINICAL SUPPLY CHAIN INTEGRATION & OPTIMIZATION SOLUTIONS
ORACLE
CLINICAL & BIOMEDICAL ENGINEERING MANAGED SERVICES
EDGE BIOMEDICAL
FACILITIES MANAGEMENT OUTSOURCING
ARAMARK
SURGICAL ASSET TRACKING SOFTWARE
STERIS
STERILE PROCESSING DEPARTMENT IT SOLUTIONS
SURGLOGS
CONTRACT MANAGEMENT & OPTIMIZATION SOLUTIONS
AXIOM BY SYNTELLIS PERFORMANCE SOLUTIONS
