Managing Health Care Supply Chain: Trends, Issues, and Solutions from a Logistics Perspective

The U.S. healthcare industry is a large enterprise accounting for over 14.1% of the national economic output in 2001. It has been under pressure for cost containment and providing quality health care services to consumers. Its record of investing heavily on development of sophisticated drugs and diagnostic systems does not match that of technologies to manage its day-to-day operations. In order to achieve improved performance, healthcare supply chain must be efficient and integrated. The driver for this integration is logistics and supply chain management. This paper describes trends, issues and some solutions for logistics management for Health Care Supply Chain with concepts drawn from Industrial Engineering, and Operations Research disciplines applied to specific domains. A healthcare supply chain template utilizing Ecommerce strategy is presented. Use of simulation, optimization, and information sharing techniques are demonstrated to optimize purchasing and inventory policies. (