Hospitals Need These Evolving Metrics to Gain a Holistic View of Their Supply Chain
Healthcare supply chain management is complex due to the highly regulated nature of the industry and continuously evolving consumer expectations about cost-effective care. Supply chain is one of the major expenses in any health system’s financials, accounting for approximately 30% to 40% of the operating budget. Due to the supply chain’s dynamic nature, hospital leaders are on a constant lookout for ways to improve supply chain capabilities while also lowering overall costs. According to an analysis by Navigant, U.S. hospitals could save $25.7 billion in their supply chain operations by standardizing products, reducing waste, and streamlining processes.
By regularly tracking supply chain metrics, hospital leaders can keep tabs on performance to accomplish the business objective of lowering costs. This blog post explores some of the traditional supply chain metrics tracked by leaders that HBI has spoken to, and looks at some of the evolving metrics that supply chain leaders need to monitor.