This article is based on findings from the 2024 Healthcare Procurement and AI Playbook from Staples Business Advantage (SBA). Respondents' comments have been edited for length and clarity.
Introduction
In today's dynamic healthcare environment, building resilient supply chains is crucial for ensuring operational continuity and patient care. By adopting a strategic approach that combines innovation, collaboration, and traditional methods, procurement leaders can navigate challenges and foster long-term success.
3 Key Considerations
1. Collaborate with Partners
Collaboration is a cornerstone of building resilient supply chains. As organizations adopt new technologies like AI, seeking input from industry peers and experts becomes essential. Jack Koczela, Director of Analytics and Transformation at Froedtert Health, emphasized the value of partnerships: "Many organizations will need to collaborate with third parties to bring AI-enabled tools into their operations." While larger organizations may have in-house AI expertise, smaller entities can benefit from partnering with external vendors to integrate AI solutions into their procurement processes.
2. Motivate Your Team
Retaining and motivating procurement teams is vital in today's challenging healthcare environment. Leaders can boost morale and engagement by offering competitive compensation, incorporating employee feedback into decision-making processes, and establishing incentive mechanisms. As one respondent noted, "Empowering staff through feedback and incentives helps maintain motivation and job satisfaction." Engaged and motivated teams are more likely to embrace new strategies, contribute to organizational success, and foster a positive work culture.
3. Lean on Time-Tested Methods
While innovation is essential, traditional methods can also significantly enhance procurement performance. Lean principles, which focus on maximizing value while minimizing waste, remain a valuable tool for optimizing supply chains. By streamlining processes, eliminating unnecessary steps, and identifying areas for improvement, organizations can improve efficiency and reduce costs without relying solely on advanced technology.
Additional Considerations for Success
- Risk Management: Identify potential risks and develop contingency plans to mitigate disruptions. For example, consider the impact of natural disasters, geopolitical events, or supply chain disruptions on your organization's operations. Develop strategies to minimize the impact of these risks and ensure business continuity.
- Supplier Diversity: Foster relationships with a diverse group of suppliers to reduce reliance on a single source. This can help mitigate the impact of supplier disruptions or price increases. Consider factors such as geographic location, product range, and supplier size when evaluating potential partners.
- Data Analytics: Utilize data analytics to gain insights into supply chain performance and identify areas for improvement. By analyzing data on supplier performance, inventory levels, and demand patterns, organizations can make data-driven decisions and optimize their supply chains.
- Sustainability: Incorporate sustainability considerations into procurement decisions to reduce environmental impact. This can include sourcing from sustainable suppliers, minimizing packaging waste, and reducing carbon emissions. By adopting sustainable practices, organizations can improve their reputation and contribute to a more sustainable future.
- Continuous Improvement: Foster a culture of continuous improvement and regularly evaluate supply chain performance. Conduct regular audits, assess supplier performance, and identify opportunities for improvement. By continuously striving to enhance their supply chains, organizations can stay ahead of the curve and maintain a competitive advantage.
Conclusion
Building resilient supply chains in healthcare requires a multifaceted approach that combines innovation, collaboration, and traditional methods. By leveraging these strategies and addressing additional considerations, procurement leaders can navigate challenges, optimize operations, and ensure the ongoing delivery of high-quality patient care.
Staples Business Advantage is a trusted partner for thousands of healthcare organizations nationwide, offering comprehensive solutions to optimize sourcing and logistics. Partnerships with top GPOs enable clients to achieve significant cost savings while streamlining purchasing across multiple product categories, including environmental services (EVS), furniture, breakroom supplies, and office essentials and more. Learn more about how SBA can help your organization stay ahead of the curve.