NHS Supply Chain: Major Issues Facing Supply Chain Managers Analysis

This report provides a comprehensive analysis of the NHS supply chain, focusing on the major issues faced by supply chain managers. It begins with an introduction that outlines the background, aim, and objectives of the research, along with the rationale for selecting the topic and relevant research questions. The literature review explores the importance and ways of managing inventory, analyzes potential risks and challenges, examines strategies for managing suppliers, and identifies tools for maintaining safety and quality. The methodology section outlines the data collection approach. The findings section presents the results, followed by an analysis and evaluation. The report concludes with recommendations for improving the NHS supply chain. Key issues addressed include inventory management, supplier relationships, safety, quality control, and the impact of these factors on the efficiency and effectiveness of healthcare delivery. The study emphasizes the importance of effective inventory control, risk management, and the use of technology to optimize the supply chain.

NHS SUPPLY CHAIN -
Major Issues Facing
Supply Chain Managers

Abstract
The inventory management is most important and vital for hospitals and health care industry
where lives of people is at stake thus, a detailed information on medicine batches and stock of
other doctor’s equipment has become vital and important. Further, effective management of the
supply chain is also vital and seemed important to diagnose possible problem on time which
ensures and leads to a solution and resolution in a correctly manner through ensuring and moving
of items in a quickly and efficiently manner to proper destination. The current research project is
based on NHS which emphasis on analysis of importance and ways of managing inventory along
with exploring strategies and effectiveness of managing suppliers. Further an identification of
tools which support maintaining safety and quality for taking enhanced competitive advantages
are also made. Beside this, the current investigation is only based on analysis of secondary data
as it more cost and time effective way of performing a study.
Table of Contents
Abstract............................................................................................................................................2
Research Topic: NHS SUPPLY CHAIN - Major Issues Facing Supply Chain Managers.............1
Introduction......................................................................................................................................1
Background to the study.........................................................................................................1
Aim and objectives.................................................................................................................1
Rationale for selection of topic...............................................................................................2
Research questions.................................................................................................................2
Literature Review.............................................................................................................................2
To identify importance and ways of managing inventory......................................................3
To analyses possible risk and Major Issues Faced by Supply Chain Managers while managing
inventory.................................................................................................................................4

To explore strategies and effectiveness of managing suppliers.............................................5
To identify tools of maintaining safety and quality for taking competitive advantages........7
Methodology and data collection.....................................................................................................8
Scope and limitation.............................................................................................................11
Results/Findings.............................................................................................................................11
Analysis and evaluation of research Findings...............................................................................20
Conclusion.....................................................................................................................................22
Recommendation...........................................................................................................................23
REFERENCES..............................................................................................................................24

Research Topic: NHS SUPPLY CHAIN - Major Issues Facing Supply Chain
Managers
Introduction
Background to the study
Supply chain basically represents the network of a company that its between a firm and its
suppliers associated with production and distribution of a specific product or service. Supply
chain network includes different activities, entities, people, resources and information involved
and contributes in creating a product started from availability of raw material till distribution of
final product (Jia, Gong and Brown, 2019). Thus, the key activities of supply chain network
comprises of effective reining, designing, manufacturing along with proper packaging and
transportation. Thus, proper supply chain management is important and vital for an organisation
as it streamlines everything within a firm through keeping and maintaining a proper smooth flow
of all products and services without any unexpected disasters. Apart from this, an effective
supply chain management is also vital to diagnose a problem on time and ensures disruption
correctly through ensuring and moving of items in a quickly and efficiently manner to proper
destination (Betcheva, Erhun and Jiang, 2020).
The NHS (National Health Service) is a well known publically funded healthcare system
the main headquarter of which is situated at London, England, UK. This organisation is working
with the aim of providing healthy and high quality care services for all people across the various
location of UK (Allden and et. al., 2018). Thus, an effective supply chain has become an essence
and must needed for NHS. Many issues are faced by Supply Chain Managers is ensuring a
proper and smooth delivery of all needed products, equipments and heath care services to
consumer which consists of costing, quality customer services, risk management, supplier
relationship, unforeseen delays, qualified team and workers along with fast changing markets.
Therefore, current investigation is lead out on NHS to identify management ways, management
strategies and security tools regarding the supply chain adopted by its manager to have a smooth
supply chain management.
Aim and objectives
Research aim
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“To identify management ways, management strategies and security tools regarding the
supply chain. A case study on the NHS supply chain”.
Research objectives
 To identify importance and ways of managing inventory.
 To explore strategies and effectiveness of managing suppliers.
 To identify tools of maintaining safety and quality for taking competitive advantages.
Rationale for selection of topic
The selection of current research topic is rationale as effective management of supply
chain is vital and essentially needed for all organisations to ensure smooth and free flow of
distribution of products and services. Thus, leading out of current investigation in the topic of
supply chain management which comprises of ways, problems and importance of managing
inventory is vital and significant from view point of a firm. Apart from this, leading out current
investigation is also important to evaluate about some better strategies to help and aid supply
mangers for effective management of inventory along with some benefits of using tools of
maintaining quality and safety for taking advantages of competition. Beside this, current research
project is also vital from personal view point of researcher as it meets academic and educational
interest along with ensuring and facilitating key knowledge and understanding on the vital topic
of supply chain. Further, development in skills and managerial capabilities is also a vital
significance of current project for researcher and other scholars.
Research questions
 What are some ways, problems and importance of managing inventory?
 Which strategies can help companies in managing suppliers?
 What are some benefits of using tools of maintaining quality and safety for taking
advantages of competition?
Literature Review
This forms a crucial and vital part of each research work which provides a leads out a base
for further investigation by the way of analysis and review of secondary form of data Arifoğlu
and Tang, 2020). The current literature review is based on the topic of Major Issues Facing
Supply Chain Managers that main objectives of which are evaluated and discussed below with
the help of available online articles and journal.
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To identify importance and ways of managing inventory
As per the view point Betcheva, L., Erhun, F. and Jiang, H., 2020, managing inventory is
important to ensure accuracy and efficiency in product flow which results in saved time and
money along with ensuring a smooth and free flow of products and services to proper destination
and customers. Beside this, an effective management of inventory also helps in preventing the
issue and chances of stock-outs along with ensuring accurate recordkeeping to reduce chances of
all chaos and confusion together with a better control of flow of resources. Thus, an analysis can
be made out that managing inventory is must and essentially needed within a hospital to have an
effective inventory management system which ensures real-time inventory counts and set up
parameters to eliminate waste and product shortages (Importance of Inventory Management in
the Healthcare Industry, 2019).
Apart from this an, analysis about the importance of managing inventory within an hospital
ca n also be made from the information provided by Kevin Johnston, 2020, an evaluation and
discussion of which is provided as follows:
Meeting inventory goals- The main benefit and advantage of inventory management
comprises of having a more accurate and a real time inventory counts through setting up and
leading out an automatic and effective records and check on inventory. Thus, effectively
managing inventory ensures and leads out to elimination of wastage and also reduces the chances
of product shortage with in a medical organisation to meet its inventory goals in a more effective
manner (Chintanapunt and Pichyangkura, 2020).
Manage recalls and reduce expiration of medicine- The another importance of inventory
management within hospital comprise of effectively tracking all medical equipments and
devices. This facilitates and leads a better control and check over medication with barcodes and
asset tags which empower managers to more effectively recall the expiry date of inventory to
reduce the number of expiated products and overcome the issue of medicine expiration.
Alignment with sales projections- In field of medicines, it is quite difficult to have accurate
sales projections as one cannot predict the diseases and the number of accidents thus, it is vital
and difficult to set a coordination between demand and supply of medical inventory. Thus, more
automated and better management of inventory becomes more vital and crucial for hospital to
have an in comparison to meet actual sales. Apart from this, prevention of wastage and free up
cash that would gone in to manage excess inventory would also be effectively management by
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regular inventory taking that help medical companies to identify trends (Chintanapunt and
Pichyangkura, 2020).
Use analytics to make better decisions- The another importance of hospital supply
management also comprise of having transformation into analytics and supports and helps a
medical organisation to make better decisions. Apart from this, automated inventory
management also built the power of a company to have data driven decisions in order to forecast
demand more accurately to have reduction in wastage along with meeting maintenance needs.
Further, an implication and better understanding about the ways for effective inventory
management could also be made which consist of Fine-tuning and effective forecasting of
inventory along with making use of FIFO approach (first in, first out) which reduces the issue of
expiry medicine through clearing up the old stock first. Beside this, identifying on the basis of
low-turn stock is also an effective way for medical organisation to reduce its cots along with
regular Audit of the stock to have better control and monitor on theft and wastage of medical
stock and inventory (Clauson and et. al., 2018).
To analyses possible risk and Major Issues Faced by Supply Chain Managers while managing
inventory
As per the view point of Nick Boariu. 2019., an analysis can be made out that many risk
and issues are faced by a Supply Chain Managers while managing inventory as there many vital
and complex factors are included into supply chain of a hospital like strategic supplier
partnership, customer relationship, level of information sharing along with postponement of
stock ad inventory. An analysis and evaluation of some theses supply chain management issues
and challenges faced by Supply Chain Managers while managing inventory are discussed below:
Maintaining Safety and Quality- With the rise in the supply chain network and
globalisation of industries the issue and concern regarding the quality and safety of products and
medical equipments has increased. Further, meeting of regulatory standards and legal process for
supply of some substantial drugs and medicine is also creating issues and challenges for supply
chain managers (Dey and et. al., 2019). Thus, an analysis can be made out that ensuring a proper
and smooth flow of suppliers along with maintaining the safety and quality standards of
medicine and other stock is the key responsibility and challenge for a supply chain manager as
safety issue and quality are the two vital factors that can affect and hamper the company
reputation and its cash flow.
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Shortage or Overstock of Pharmaceuticals- It is also a common issue and challenge faced
by a supply chain manager within in hospitals. It is difficult for a supply chain manager to expect
and main accurate estimation of demand of medical equipments and medicine thus, issues of
medicine shortage or overstock are common seen and faced by supply chain manager that stock
its cash flow and hamper company reputation. The shortage of medicine resulted in form of
limited availability of active ingredients by clinics and hospital which can be due to trade issues
where as overstock of medicine enhanced the risk of expiry and obsolesce of medical stock.
Thus, shortage of medicine leads to many issues and challenges for supply chain managers in
form of lack of proper healthcare services which affect the availability of branded and generic
medicine (Duque-Uribe, Sarache and Gutiérrez, 2019).
Loss or theft of surgical equipments and other Pharmaceuticals- It is also a biggest and
most common challenge and issue faced by a supply chin manager which cost million to
healthcare industry. Ineffective managing of inventory and stock would lead to enhanced cases
and chances of lost and theft of surgical equipments and other Pharmaceuticals that lead to big
issue and challenge for supply chain manager in form of high loss and lack of needed equipments
and medicine to fulfil the customer demand.
Tracking Expiry dates- Keeping a proper records of all stock and medicine available
within a hospital or clinic is also a difficult and challenging for a manager which causes the issue
of tracking of expiry dates. An analysis can be made out that the stock of healthcare comprise of
many life saving drugs and medicines have a small life and can be hazardous for use after expiry
date. Thus, keeping a track of all medicines and timely sales of all medicine before there expiry
is vital and challenging to for a supply chain manager within health care industry (Elkhechafi
and et. al., 2018).
To explore strategies and effectiveness of managing suppliers
With respect to information Sammi Caramela. 2020, it has been find out that the many
strategies needs to adopted by an organisation to ensures and lead out effectiveness in managing
the suppliers. These strategies consist of prioritizing inventory which would help to effectively
understand the items that are more needed and frequently demanded by the customers. Further to
ensures, effectiveness in healthcare industry medicine and drugs can be categorised as A, B and
C group to effectively meet the demand and ensures more better inventory management. Apart
from this, tracking a regular and an effective track of all product and information is also a vital
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strategy to meet the effectiveness level in managing supplies. Apart from tracking of all product
and medical equipments also ensures and leads out to track cost of each item over time along
with making a supply chain manager more aware about the factors like cost and scarcity of
resources to ensure are effective and better management of inventory within health care industry.
The some other strategies which can be adopted and taken in care by supply chain managers of
health care industry to meet the standard and effectiveness of managing suppliers are provided
and evaluated below:
Overcoming Unforeseen delays- The first and foremost step needs to taken by a supply
chain managers consist of making step for overcoming unforeseen delays to overcome the issue
of shortage of supply through maintaining proper and smooth flow of inventory. This can be
done by a supply chain manager through keeping a sufficient buffer stock of highly needed
medicine through maintaining an efficient warehouse system to have certain material delivered
to create a time cushion in terms of delivery which ensures everything runs smoothly to maintain
the effectiveness in managing suppliers (Hardy, Bhakoo and Maguire, 2020).
Evaluating needs of fast changing market- The another vital way to meet the standard
and effectiveness in the management of inventory comprises of setting effective balance and
coordinating with the fast changing needs and wants of market and target customers. It is
important and essential for a supply chain manager to keep a check on recent changes going on
within a market along with regularly monitoring the needs and wants of dynamic environment to
maintain and keep a effectiveness in managing suppliers to cater and meet that dynamic wants.
Effective supplier’s relationship- The most vital strategy for leading effectiveness in
managing suppliers comprise of maintaining effective supplier’s relationship as through keeping
a mutually sound and more harmonious relationship with partners and suppliers ensures a more
smooth and free flow of stock to provide customers with needed products in a timely manner to
meet the effectiveness of managing suppliers. Further, a harmonious and sound relationship with
suppliers also ensures and lead to enhanced opportunities for a supply chain manager through
mitigating risk of shortage and overstocking of raw material through working effectively and
leading enhance effectives in managing supplier trough more timely and instant supply of needed
products (Hendry and et. al, 2019).
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To identify tools of maintaining safety and quality for taking competitive advantages
According to the view point of Michael Wilson. 2020, many tools and techniques are
available for a supply chain manager for maintaining safety and quality in managing supplies
which also helps in taking competitive advantage. An analysis of some of these tools and
techniques for maintaining safety and quality for taking competitive advantages by a supply
chain manager and healthcare orgnisation like NHS are provided and evaluated below:
Implementing a Hospital Supply Management System- It is a vital tool that can be
adopted by NHS which assist this organisation to reduce spending on there inventory
management by keeping there budget in line to have more competitive strength and efficient
business operations. the use of Hospital supply management system lead to a more better
obtaining of resources, managing supplies, and delivering goods and services to providers and
patients which ensures and leads to more efficient supply chain management which also ensures
maintaining safety and quality of product. Apart from this, implementing and leading out an
effective hospital supply chain management system ensures and lead out to an automated
inventory management, automatic data capture, mobile access, and data storage which provides
and leads to finding of more better and analysis solution for supply managing issues to have
enhance competitive strength and advantage in business environment (Jayaraman., AlHammadi
and Simsekler., 2018).
Use of Asset Tags for Efficient Check-Out and Check-In of Medical Instruments- It is
also a vital technique that can be adopted by a health care orgnisation like NHS to overcome the
issue of loss and theft of medical equipment along with ensuring more effective security check
and quality. An analysis can be made out that use of techniques to assign proper asset tags to
labels all equipments and medicines with barcodes featuring unique identification numbers for
each item would ensures a better check and control over movement of each through tracking
individual pieces of equipment virtually within a healthcare sector to overcome issue of theft and
security. Beside this, it also ensures and leads out to reduce inventory costs and increase staff
efficiency and productivity by streamlining the check-out and check-in process which brings
safety and quality within healthcare orgnisation along with taking care for competitive
advantages (Mathur and et. al, 2018).
Regular audit of inventory along with lean strategy- The another vital step that can be
taken by a health care organisation to ensure effective supply chain management along with
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meeting safety and quality of products comprises of having effective and regular audit of
inventory which ensures better check and control over the inventory. Further, implication of lean
strategy also ensures and leads to reduction of overall wastage of resources in supply chain
management which helps in taking more competitive strength.
Stay current with technology- The anther vital step that can be adopted to maintain high
quality and safety of products comprises of presenting better technological changes which
paramount and flourish an industry through setting effective balance with latest and more
efficient use of technology (Moktadir and et. al, 2020). Many new and efficient inventory
management software are available that can be used and adopted by NHS which support and
helps in managing stock like use of scanners and POS systems that helps in keeping inventory in
track along with prioritizing safety and quality of product along with overcoming the issue of
inaccurate inventory counts which ensures enhanced competitive strength in business
environment.
Methodology and data collection
This section forms a vital part of every research work which provides and facilitates
information about the expected and proposed research methodology that is being used by a
researcher to perform a research work. Implication of research onion model is made for current
investigation to ensure selection of proper research method for current investigation a description
and justification of which is provided as follows:
Figure 1: Research onion, 2020.
Research Philosophy
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It majorly deals with the source or in nature prevails along with development of
generating knowledge. In another ways that it circulate belief which is create data evolution and
gathering to utilise in research aims and objectives. It contains two important type of research
philosophy:
 Positivism: As per this approach it defines about that it is having limited data collection
in research aspect. It stats to collection data which is genuine or contains some sort of
knowledge that prevents better outcomes as well as natural phenomenon along with their
poverty. It also depends upon quantitative assumptions which support to leads towards
statistical analysis. Furthermore, positivism studies allow to predicts data with n
provision towards for human interest that better gain high profitability as outcomes better
study analysis (Moktadir and et. al, 2020).
 Interprvistism: This philosophy is derives the involvement of researcher where they
evaluate for interpret study on some other data analysis. It highlight to scrutinize data for
multiple assumptions that method in order to reflect different aspects to reduces issues.
For this type of studies it merge meaning for multiple towards getting attain satisfactory
outcomes.
As per above two research philosophy researcher is selected Interprivism because as all data
is collected from other sources as well as interpret enhance on multiple assumption that
generates various form of issues evaluated. While, to not consider about positivism that
creates outcomes in statistical way.
Research Approach:
This is framework of planning or procedure which depicts certain steps that evaluate set
of assumption for detailed method for better data collection for analysis, interpretation. Through
essential divided through having two categories that having sort of approach that commence
better data collection as well as approach to differentiate analysis in detailed format. It involves
two major approaches:
 Deductive: It is factor where the reasoning which is better complies to scrutinize data
collection in more specific format. Deductive as it assists towards hypothesis criteria
where information related with data is well generate to better prevails high outcomes.
Meanwhile, it mainly consider to opted in research when primary data involves to play as
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