Logistics & Supply Chain Management | Study
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UNIVERSITÀ DEGLI STUDI GUGLIELMO MARCONI
Added on 2020-05-08
Logistics & Supply Chain Management | Study
UNIVERSITÀ DEGLI STUDI GUGLIELMO MARCONI
Added on 2020-05-08
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Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENTAN INVESTIGATION ON BARRIERS OF HEALTH CARE UPSTREAM SUPPLY CHAIN IN INDIAStudent NameCourse TitleProfessorName of the InstitutionCity and StateDate
1LOGISTICS AND SUPPLY CHAIN MANAGEMENTTable of ContentsChapter 2- Literature Review..........................................................................................................32.1 Introduction............................................................................................................................32.2 Supply Chain System of Health Care Industry......................................................................42.3 Factors affecting the upstream supply chain management in healthcare in India.................52.3.1 Relationship with suppliers.............................................................................................52.3.2 Specifications and standards...........................................................................................52.3.3 After procurement service..............................................................................................62.3.4 Compatibility..................................................................................................................72.3.5 Timely delivery...............................................................................................................72.3.6 Responsiveness...............................................................................................................72.3.7 Safety..............................................................................................................................82.4 Issues related to healthcare supply chain upstream for a hospital in doctor’s perspective....82.4.1 Misplacement of medical equipments............................................................................82.4.2 Late delivery of the medicinal products.........................................................................82.4.3 Poor quality of the products............................................................................................92.4.4 Lack of sustainability certification.................................................................................92.5 Challenges to the upstream supply chain management in health care in India...................102.5.1 Lack of awareness regarding the supply chain management........................................10
2LOGISTICS AND SUPPLY CHAIN MANAGEMENT2.5.2 Deficiency in of top management support in the supply chain management...............102.5.3 Poorly integrated information system...........................................................................112.5.4 Lack of coordinated effort, strategic alliance formation and knowledge sharing........122.5.5 Inconsistent and inaccurate product information..........................................................132.5.6 Inability to meet changing demand pattern..................................................................132.5.7 Limited communication among all parties...................................................................142.5.8 Incompetent cold chain management during transportation.........................................142.6 Recommendations for improving the supply chain management process...........................152.6.1 Encouraging top management commitment.................................................................152.6.2 Enhancing logistic synchronization..............................................................................152.6.3 Improving the communication at every stage...............................................................152.6.4 Staff Training................................................................................................................162.7 Summary..............................................................................................................................16Reference List................................................................................................................................18
3LOGISTICS AND SUPPLY CHAIN MANAGEMENTChapter 2- Literature Review 2.1 Introduction Logistics and supply chain management gains its importance in recent years to seethrough the process integration from upstream to downstream for health care institutions. Burns(2002) stated that around the 40% to 5% of the healthcare expense of healthcare systems andhospitals comes from the supply chain management. The function of supply chain emphasizes ondetermining the amount of supply that is to be purchased and carry in storerooms of healthcareorganization. Christopher (2016) moreover depicted that healthcare organization also gaincompetitive advantage through logistic system through effective innovation, speed and flexibilityin the system. Kwon et al. (2016) on the other hand argued that supply chain management ismore complex in healthcare industry and there are many barriers of health care upstream supplychain in Asian countries especially in India and Thailand. These barriers can be inefficientprocess, inaccurate data information and inconsistent data management and manipulation.However, only the country India is considered for this research. This research aims for evaluating the details on barriers of health care upstream supplychain in India. The major objectives that will be addressed in this chapter is the determination ofthe factors that affects the upstream supply chain management of healthcare in India andevaluation of the issue of healthcare SCM upstream in a hospital that affects both the doctors andhospital perspective. Several theories will also be discussed for addressing the objectives toevaluate challenges that put an adverse impact on upstream SCM in healthcare providers inIndia.
4LOGISTICS AND SUPPLY CHAIN MANAGEMENT2.2 Supply Chain System of Health Care Industry A healthcare business in India mostly deals their business with the service enterprises thatincludes pharmaceuticals, medical consumables, information technology, catering, wastemanagement, laundry cleaning, home-care products, general supply and vehicle fleetmanagement (Adebanjo et al. 2016). Parmar and Shah (2016) suggested that there are four majortypes of key individual in the supply chain management of health care organization-manufacturers, distributors, healthcare providers and payers.Image 1: Key Individuals in Supply Chain Distribution of a Health Care Organization(Source: Parmar and Shah 2016)In this case, the primary manufactures acts as a supplier for secondary manufactures andafter getting the supply materials these secondary manufactures is liable for transforming activeingredient into consumable products like capsules, tablets, syrups and other pharmaceuticalsolution. Razak et al. (2016) highlighted that the finished products then distributed the finaldeveloped goods to healthcare providers by distributors, wholesalers and manufacturers. In thiscase, some manufactures formulate their own medicine distribution cycle in order to givediscount on distribution fees. This process helps in overcoming the problem of supplyingsubstitute products of the medicines in the hospitals. Moreover, there are some cases where thecost related to inventory stock of the competing product is reduced by cutting the expense of
5LOGISTICS AND SUPPLY CHAIN MANAGEMENTstock control. Govindan et al. (2014) moreover highlight that healthcare industry play their roleas both supplier and customer. Manufactures supply pharmaceutical items directly to theprofessional healthcare providers and thus the later act as a customer to the former one. Theprofessional healthcare providers then sell the products to the end-customers but they also offermore functionality to the end-users like adding value to the material flow and providing newinformation flow through the supply chain. 2.3 Factors affecting the upstream supply chain management in healthcare in India2.3.1 Relationship with suppliersUthayakumar and Priyan (2013) stated that supply chain management is aboutdeveloping effective links with network and links. These relationships are with those suppliers,who supply medicinal equipment, vaccines and medical technology to the hospitals. Acharyuluand Shekbar (2012) depict that effective relationship with suppliers allow the organization todevelop effective system by aligning their company’s goals and objectives. It is also stated byBelien and Force (2012) that collaborative relationship facilitates innovation that is crucial forgrowth and improving resilience of the organization (Cho et al. 2012). Partnership with supplychain third party service provider also enhances the accuracy and timely delivery of the finalproducts to the consumers. 2.3.2 Specifications and standardsEvery nation has different procurement standard where the local government andorganization’s authority set the legislations. These legislations pays a crucial role in supply chainmanagement. The legislation is based on the chemical compositions, weight of the freight,temperature requirement of the medicines and tax payments for each shipment. Moreover,
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