Healthcare product manufacturers are mastering some aspects of the medical supply chain, but challenges remain, according to a survey funded by Atlanta-based UPS.
New York City-based TNS conducted the eighth Pain in the Chain survey on behalf of UPS between April and June 2015, interviewing a total of 421 healthcare logistics executives in 16 countries.
"There is an increased focus on cost improvement, driven in part by the Affordable Care Act, but also by rapid business growth. Supply chains need to be flexible and innovative to address new demands and scale rather quickly," director of healthcare marketing for UPS Robin Hooker told Packaging Digest. "CEOs...are looking for cost reductions, so supply chain logistics professionals will be required to do more with less.”
Below are eight key findings from the survey:
1. In 2015, 75 percent of respondents reported success in addressing product security compared with 55 percent in 2014.
2. Sixty-seven percent reported IT investment has been the most successful means to improving product security.
3. Of respondents, 70 percent reported success in addressing regulatory compliance versus 57 percent of respondents in 2014.
4. Half of respondents struggled the most with managing logistics, warehousing and transportation costs.
5. Of those who reported success in avoiding product damage and spoilage, 74 percent credited partnering with a high-quality carrier.
6. Sixty percent of healthcare logistics executives feel contingency planning is important.
7. Sixty-eight percent said optimizing transport costs is the biggest opportunity to reduce supply chain costs.
8. Fifty-six percent of respondents said the biggest challenge to managing overall supply chain costs is rapid business growth.