However, COVID-19 is not the first nor will it be the last case of supply disruption in the healthcare industry. While the pandemic was the impetus for fluctuating supply and demand, variables such as vaccine deployment and other crisis events might perpetuate the unpredictability of the medical supply chain in the coming year.
Here are three ways to help navigated changes within your supply chain and adjust your demand planning process in the new year.
- Consider a logical unit of measure program at your facility.
“Logical unit of measure” (LUM) programs, such as ValueLink, provide an innovative perspective to more typical “low unit of measure” or “just it time” distribution models. “Logical unit of measure” leverages data and insights to determine the accurate unit of measure, based on actual usage. Using data to improve supply chain efficiency is crucial during unexpected demand circumstances. An optimized supply chain drives down operational costs, increases fill rate and efficiency, and can help improve the quality of care delivered.
LUM distribution can help health systems mitigate the pressures of fluctuating supply and demand by using Periodic Automatic Replenishment (PAR) levels to determine days of inventory on hand (DIOH). Cardinal Health has some valuable analytics to help customers establish and maintain PAR levels. Those levels include at the nursing unit or department, within the nursing supply room or hospital storeroom, within the health system’s warehouse, within your distributor’s warehouse, and within your own pandemic stockpile.
- Increase your visibility into the supply chain.
When supply is healthy, visibility may be less top-of-mind, however, during times of product disruption sparked by events such as the COVID-19 pandemic, we are seeing critical decisions with short- and long-term impact.
Providers must have confidence not only in what products are available to them, but also in the reliability of their long-term supply health and clinical preparedness. For instance, providers must be able to aggregate their demand projections and map them out, giving them the opportunity to leverage their supply chain partners to collaborate on logistics adjustments or find alternatives. Ask your distribution and other supply chain partners what capabilities they offer to provide you more visibility.
- Work with your distributor to alleviate uncertainty in operational supply chain needs.
During challenging times when product need is continually outpacing supply, communication between health systems and their distributors is critical to achieving the best possible result. Transparent and regular communication can help alleviate stress on providers and their supply chains. If a system is experiencing a significant increase in operational demand, it is important to know the specific products, quantities, and duration of time needed for increased supply. This allows the distribution partner to help assess supply, improve visibility into product availability, and determine the best path forward.
As we enter 2021, hospital supply chains will continue to face existing or new challenges. These tips can mitigate the negative effects of these challenges and adjust demand planning in response.
For more supply chain tips and best practices, visit cardinalhealth.com/supplychaincenter.
