Publisher’s Letter Disruption, Elevation, and Visibility

Disruption, Elevation, and Visibility

Well, here we are, over two years into the pandemic. Looking at COVID-19’s impact on the

healthcare supply chain, three things in particular have changed, perhaps forever.

Supply disruptions have become commonplace

Before the pandemic, supply interruptions were rare. I can really only think of a couple times when there were significant outages – during the Beijing Olympics and when hurricanes hit the Caribbean. Other than that, I don’t recall supply chain leaders en masse complaining about supply interruptions.

Also, before it seemed like supply chain leaders were working hard to have everybody operating at the top of their capability or license. Then we started to have supply disruptions that were not quickly alleviated. Earlier this week, I spoke to a supply chain leader of a major IDN, and he lamented how his daily routine consisted almost entirely of looking for one product after another. I worry that these disruptions will not alleviate for years to come without some consolidated clearinghouse marrying supply and demand visibility.

The elevation of supply chain as a strategic role

Before the pandemic, supply chain was viewed in hospitals and IDNs as an important activity or even a skilled discipline. As the pandemic hit hard in early 2020, it became apparent how important supply chain was to health systems. Supply chain quickly became viewed as the frontline protector of healthcare provider’s patients, employees and clinicians.

I don’t see this going away anytime soon. I believe supply chain will not only be responsible for ensuring supplies, but also coordinating much of the risk management within health systems. Now more than ever, healthcare providers should be focused on talent development for today’s and tomorrow’s challenges.

Trade partners must have visibility into supply

Trade partners will no longer have the luxury of believing supply is continuous. For a successful future, and the continued supply of products and services, sourcing professionals will need to see into their supplier’s supply chain. Having visibility into product in transit, finished goods, work in progress and raw materials will certainly become commonplace in the contracting and sourcing processes of tomorrow. While this will add a level of complexity in the healthcare supply chain, it will also add a level of resiliency dearly needed in our ever-changing world.

Whatever great challenges lie ahead, I have all the faith in the world we will continue to prosper as an industry. I hope you enjoy this issue of The Journal of Healthcare Contracting.