Supply Chain Tip of the Week: Utilize Collaborative Planning, Forecasting and Replenishment (CPFR) in the healthcare industry

The healthcare sector is reexamining how to build greater flexibility into supply chains while preserving efficiency and preparing for future shocks to the system.

Sharing best practices can uncover opportunities for improvement and allow facilities to reallocate their resources for both long and short-term supply chain success. 

Becker’s Hospital Review gathered health system leaders for a panel discussion sponsored by Cardinal Health. The panel, The Supply Chain Reimagined: Best Ideas and Concepts for Sharper Processes Now, featured James Sembrot, senior vice president of U.S. supply chain at Cardinal Health.

According to Sembrot, “Cardinal Health believes Collaborative Planning, Forecasting and Replenishment (CPFR) could be beneficial for healthcare supply chains. While this disciplined process is relatively new to healthcare, retailers and consumer packaged goods companies have excelled at CPFR for years. “We know we’ll get improved results by jointly reviewing our plans and contingencies with both our customers and suppliers. With CPFR, we are disciplined between health system, distributor, and key manufacturers in reviewing our service and operating metrics, locking in on a consensus forecast, reviewing supply performance, and creating the best possible ‘Plan A,’” Sembrot said. “Now for ‘Plan B,’ we’ve invested in Kinaxis’ Rapid Response software to help us generate options and choices for when something goes different than we had collectively planned,” Sembrot added. For more supply chain insights, visit our Supply Chain Center resource page.

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