Posts tagged ‘Medical industry’

AMR Research Ranks Top Healthcare Supply Chains

AMR Research has named Johnson & Johnson as the top health care supply chain for 2009. This top 25 list, released annually, “identifies the global companies that have best demonstrated leadership in building supply chain excellence and innovation. Specifically, these companies have focused on applying demand-driven principles to their operations to drive significant business results.” According to AMR, the supply chain has not been considered a strategic function at many health care companies, and as a result supply chain innovation in health care has lagged behind other industries. (Side note: If President Obama passes his health care reform initiatives, this is something that will need to change in the health care industry. Check out my previous post on this issue: Obama’s Health care Bill and the Medical Supply Chain.)

J&J has implemented “a series of targeted, enterprise-wide initiatives that focus both on the customer and operational efficiencies. The company strengthens these internal initiatives by actively participating in industry forums and engaging key hospital customers in supply chain pilots aimed at identifying and unlocking joint value.” All of the companies on the list demonstrated several key traits - biodirectional visibility, enabling technologies, collaboration, business process innovation, alignment, and integrated demand-driven supply networks:

Source: AMR Research

Source: AMR Research

(Congrats to the Management Dynamics customers who made it on to the list!)

To read the full report from AMR Research, please go to The AMR Research Healthcare Top 25 for 2009.

Download Case Study: Learn how one company in the medical technology industry improved its supply chain with an automated solution from Management Dynamics: Trade Automation Remedies Complex Compliance Operations for Medical Technologies Company.

Obama’s Health Care Plan and the Medical Supply Chain

President Obama’s proposed health care plan will present some new supply chain challenges to the medical industry if it goes into effect. One of the main goals of the President’s plan is to “assure affordable, quality health coverage for all Americans.” This would have a significant effect on the supply chains of medical companies. With more people receiving health care, the demand for medical devices and pharmaceuticals will go up. Health care companies must be able to handle this growth by expanding their supply chains as necessary, and ensure that operations are running as efficiently as possible, while keeping costs down. Logistics Management raises this point in their analysis of UPS’s recent survey of health care professionals. Eighty-one percent of respondents said that they were highly concerned about managing costs and, according to the analysis, this is due to the pending health care legislation.

I won’t get in to the political debate on the pros and cons of this plan, but I will say that now would be a good time for health care companies to start implementing supply chain best practices and techniques to ensure they are ready when change starts happening.

Free download: AberdeenGroup – Global Supply Chain Benchmark Report. This report from Aberdeen discusses some key global supply chain enhancements that are critical for success.