Healthcare Supply Chains

Logistics that address the risks of supply

The Covid-19 pandemic is teaching us many lessons related to what healthcare supply chains of the future will need to look like to overcome challenges like the ones we’re facing now, writes Eelco Dijkstra, Global Head of Sales for Healthcare, CEVA Logistics.

Over the past nearly two years, we witnessed a number of compounding disruptions, and some analysts believe it could take years before global supply chains become balanced. In the healthcare industry, supply chain disruptions are also present and there are lessons to be learned in how to better mitigate future risks.

First, governmental departments of health responsible for the public hospital systems will be rethinking their sourcing strategies. Where a few years ago the strategy might have been to source from anywhere in the world for as low as possible, it’s likely that procurement departments will now be looking more to source from producers closer to home rather than from far away.

Another topic of discussion is likely going to be that of inventory levels. Over the past 10 years, there was a trend to hold little inventory with only a small safety stock. It was a buyer’s market for logistics and transportation services which meant rates were low and capacity was high.

Demand spurt

If there is a sudden spike in demand it is relatively easy and cheap to get sufficient quantities of product delivered quickly. Those supply chains were not set up to incorporate large disruptions. This has all changed and holding higher levels of safety stock is back on the agenda.

In addition, the trend to improve the quality standards around the warehousing and transportation of healthcare products in the region will continue at an even higher pace. International good distribution practices (GDP) are now more and more stringently applied by Ministries of Health across the Middle East. This is good for the industry.

Making sure warehouse logistics and trucking companies comply with these stringent GDP requirements will be a top priority. Today, most regional import logistics activities for healthcare products are outsourced as 3PLs typically distribute goods to distributors across the region.

CEVA Logistics has a global network of cold chain air freight stations for transporting pharma products.

Last-mile deliveries

These final-mile distributors can still improve on the quality and temperature compliance requirements related to the storage and delivery of healthcare products to hospitals, medical clinics and pharmacies.

CEVA Logistics has designed its FORPATIENTS healthcare logistics solutions around the patient. This means that the company works with its healthcare clients to provide highend logistics services that not only fulfill increased international quality standards, but that also play into future logistics trends centered on the end patient.

Quality and compliance will be key to all healthcare logistics solutions. In the future, having the right logistics solutions will ultimately enable healthcare companies to provide the best patient outcomes even in the midst of unforeseen challenges.