Healthcare Logistics: Challenges and Opportunities

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Just like a human body can’t function without the liver and brain and its other vital organs, a healthcare system is the same without a supply chain that can’t process a bit. The supply chain typically refers to the resources required to deliver goods or services to a specific consumer. In contrast, the healthcare supply chain system is a compound and scrappy process. It ensures the regulation of the flow of medical products and services from manufacturer to patient. When such a process is in full swing, physical goods and information about pharmaceutical products and services travel to some independent stakeholders, including manufacturers, insurance companies, hospitals, providers, group purchasing organisations, and other regulatory agencies.

However, by spilling efficiency in the areas of the healthcare supply chain, medical organisations and private healthcare providers can substantially benefit from the overall practice. They widen cost-reducing opportunities across their organisation through this. We feel the impulse to denote this that the healthcare industry has been working with suppliers throughout the years to gain the edge in compliance that can be possible by demeaning the rising trend of high costs and inefficiencies.

These cataclysmic changes happen “due in large part to declining reimbursements for services. As a result, they are seeking opportunities to reduce costs without diminishing the quality of patient care,” Supply Chain Quarterly explains.

But in the last couple of years, things seem to be improved for the betterment.

“The way healthcare organisations source supplies and communicate with manufacturers and service providers is undergoing a comprehensive transformation – they stand one that is essential to meet emerging patient demands, address healthcare legislation, support an overall focus on improving patient care, and reduce healthcare costs.”

According to Gartner’s 2016 Healthcare Provider Supply Chain Outlook, we bring to spotlight the foremost concerns of the healthcare industry leaders:

  • Aligned objectives following strategic goals and integrated delivery networks.
  • Prioritise standardisation.
  • Reducing pharmaceutical costs.

When it comes to realising the challenges one after another that are affecting the growth of the healthcare industry, so there are few critical ones we’ve sorted out.

  • Increasing government regulations and requirements,
  • The pharmaceutical patent cliff,
  • Industry consolidation, counterfeits
  • Industry contaminants and expansion into emerging markets.

With these challenges comes the pinnacle opportunities and not only for the healthcare manufacturer but also for the logistics provider.

One of the Ti’s old but significant report till now, “2014 Global Healthcare Logistics”, consider these challenges and opportunities by contemplating on the clinical trial, medical device, and pharmaceutical markets. While several pharmaceutical blockbuster patents continue to expire, this is infuriating generics as well as new pharmaceuticals that are temperature-sensitive. This change in the pharmaceutical mix is modifying warehousing as well as transportation – A shift from air to ocean transport for many generics and a transportation and warehousing solution that requires the careful monitoring of temperatures and humidity for temperature-sensitive pharmaceuticals and medical devices.

Additionally, emerging markets are contributing to a huge percentage of healthcare manufacturers’ revenues. This has even resulted in an outstretched and complex supply chain for many of these companies. For this reason, the emerging need for IT systems to maintain this extended supply chain as well as logistics knowledge is needed in these markets.

Particularly for logistics providers, there are abundant opportunities in the healthcare industry. Back in the time estimated at €57.9bn, the 2013 pharmaceutical logistics market grew 11.1% from 2012. Achievement of this growth was based on the crucial factors such as the rise in temperature-sensitive pharmaceuticals and expansion into emerging markets. You may find it hard to believe, but it was the emerging markets that showed the greatest year-over-year growth with Asia-Pacific (excluding China and Japan) leading the way growing 18.5%, Brazil growing 16.1% and China with 14.3%.

At the same time, the medical device logistics market, estimated at almost €20bn, also encountered a good growth rate at 14.4% from 2012. Even though the minimalistic opportunities wreaked are great; still, logistics providers should prove their value through their knowledge and practical expertise. Also, they must provide the needed services to laidback healthcare companies in emerging markets to make them shine globally.

We’re The Best You Can Get

Fetlogistics is one of the world’s leading healthcare logistics service providers in the UK that fundamentally take care of one-off shipments and furthermore facilitate your regular transportation requirements using our specialist flee of the expert.

Not only we’re ISO9001 certified, but we’re also associated with the GDP ethical distribution practice requirements for the pharmaceutical industry, and we are proud found members of TAPA. We are also members of the Freight Transportation Association. Utilising properly the expertise of our professionals who have long-lived experience in the mail, express, and logistics industry, we treat every consignment with the same respect, care, and attention.

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