Operations, Logistics, and Supply Chain at Wellington Hospital

This report provides an in-depth analysis of the operations, logistics, and supply chain management at The Wellington Hospital. It begins with an introduction highlighting the importance of efficient management in the healthcare sector and the hospital's focus on customer satisfaction and resource optimization. The discussion section critically reviews relevant theories, including agency theory, and examines the hospital's location and layout. The report then explores the application of logistics and supply chain management theories, emphasizing the role of supply chain management in improving resource allocation and patient services. It details the hospital's services, including its multi-specialty care and key functions. The analysis highlights the hospital's supply chain management strategies, such as the use of RFID and Just-In-Time (JIT) inventory systems, to reduce costs and improve efficiency. It also discusses the hospital's commitment to corporate social responsibility through its non-profit initiatives and adherence to the triple bottom line framework. The report concludes by outlining the flagship hospitals within the HCA healthcare group and their locations.

Running head: UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT
THE WELLINGTON HOSPITAL
Understanding operations, logistics and supply chain at The Wellington Hospital
Name of Student
Name of University
Author Note

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UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT THE
WELLINGTON HOSPITAL
Introduction
Introduction of better management is important for any kind of hospital sectors. Thus in
order to indulge the development of high level of economic activities. The Wellington Hospital
is mainly helpful for the development of health care services in UK and introduction of better
quality of strategic management, the health sector is one of the flourishing sector within the
economic activities within UK. Now in order to indulge the development of resource making
abilities, it has been seen that Wellington hospital is mainly looking to build up strong base of
customer satisfaction. The group of hospital is mainly aiming to identify the resources gap that
are going to increase the development of better quality of production. It is important for the
group of industry to make use of the resources that will be helpful in the development of long run
profitability.
Discussion
Critical review of relevant Operation, Logistics and Supply Chain Management theories
In the hospital industry, the operational management is important because of fact that
within the industry there is a chance of mismatch and fraudulent activities. Now in order to bring
in high quality of performances, the Wellington Hospital is mainly looking to bring in high
quality of management that is mainly going to invent in the hospital sectors it is most important
to bring in high class of technological advancement and through the incorporation of better
quality o9f production, the Wellington Hospital is mostly having high patient issues and
middlemen issues. Through the incorporation of better quality of strategic management it is
important to bring in better level of resource making abilities. Through the involvement of
agency theory, the company will be able to identify the incorporate the high class of resources.

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UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT THE
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Now through the implementation of agency theory, the company will be able to identify the
stakeholders and medicine suppliers.
Location layout
The wellington hospital is located in the south BLDG the 8A wellington PI London NW8
9LE, United Kingdom. The wellington hospital in St johns wood , north London is the largest
independent hospital in the united kingdom and part of HCA international hospital group.
Use of logistics theory
The implementation of the logistics theory is definitely aimed in making better marketing
of the products specially the health sector that will definitely allow the economic activities as
well as the health sector will flourish. Now in order to indulge the development of health sector,
it is important to bring in high quality of resources so that the better quality of medicines and
other health instruments can be distributed in an effective manner. This is an important concept
that will bring in the concept of better level of marketing. Through the help of supply chain
management it is important for the Wellington group to bring in high quality of resource buildup.
In order to bring in supply chain management, the Wellington Company is basically looking to
bring in high quality of resources.
Theory of supply chain management
Supply chain management is basically aiming to bring better quality of resources so that
the logistics and supply chain can be used to bring high quality of raw materials. In order to
bring in better quality of involvement of resources that will indulge the economic adjustment
within the health sector. Now in order to bring better quality of services within the patients, the
company is mainly aiming to bring better involvement of doctors and nurses. The main is to

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UNDERSTANDING OPERATIONS, LOGISTICS AND SUPPLY CHAIN AT THE
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bring high quality of medicines from the supply chain and in order to bring in high quality of
resources, better productivity can be highlighted. Through the supply chain management, it has
been seen that companies are aiming in better level of productivity. This will help Wellington
Group to increase their base of customers. Now through the better level of customer targeting the
company will be aiming to highlight overall turnover through the provision of better quality of
services.
The Wellington Hospital is a flagship hospital of The HCA healthcare group based in
Wellington UK, The Wellington Hospital is the largest private hospital in the United Kingdom
providing specialist complex care to the patients. The Wellington Hospital is responsibly taking
care of their patients for over 40 year now (Hcahealthcare.co.uk. 2019). The hospital have
experienced various life-changing breakthrough in medicine and care of the patients The
Wellington Hospital offers multi-specialty, acute and complex care services to the patients. The
Key functions of the hospital include many services handled by specialist experts in various
range of specialties including the peripheral nerve injury, spinal surgery, gynecology, breast care,
cardiology, neurosurgery, kidney disease and gastrointestinal care. With the establishment of
London Gamma Knife Centre, which recently Opened at the Platinum Medical Center of the
Wellington Hospital provides a private GP service. Other key function delivered by the hospital
include acute rehabilitation. Bariatric, complex care, colorectal surgery, Dermatology,
Craniofacial surgery, foot and ankle, ENT, GPs, Gamma Knife, Hand therapy. Hand and wrist,
hybrid imaging, hip, ophthalmology, neurosurgery, neurology, knee, liver/HPB, knee osteotomy,
neuroendocrine tumors. Outpatients physiotherapy, occupational therapy, pain medicine, plastic
surgery, peripheral nerve injury, spinal, shoulder and elbow, vascular surgery, urology and sports

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medicine (Hcahealthcare.co.uk. 2019). These unique services and products has made wellington
as one of the most popular hospital in UK.
The logistics and supply chain management in wellington hospital is different from
other hospitals and it use different techniques to optimize the cost of supply chain in the health
care industry due to the fact that increased level of competition in the market and affordable
services to the patients (Narcı et al. 2015). These two are to major issues that need to be taken
care of whist optimizing the supply chain process. In this era of competition, every industry must
figure out ways to reduce expenditure and align to cost effective measures to stay ahead in the
market (Mathew, John and Kumar 2013). In response to the increase in the price of almost all the
products and services wellington hospital implement a Supply chain management system that
enables the hospital to reduce the cost of all the products and services that are rendered by them
without reducing the quality of there services . At present new sources for competitive advantage
and cost cutting measures have been used by the wellington hospital. Proposed new solution to
effective supply chain measures are RFID application in the wellington hospital, has helped the
organization to connects object to the internet for easy tracking and maintaining the inventory.
This can also facilitate in implementing JIT inventory with real time tracking of things, enabling
the organization to make strategic decisions for optimizing the processes (Mathew, John and
Kumar 2013).
The supply chain functions in wellington hospital has been managed very efficiently
by the administers of the organization. Supply chain in wellington hospital can be accountable
for as much as thirty percent of the total operational costs of the hospital (Schwarting et al.
2011). Only some of the hospital around the globe have developed the system of collaborative
and strategic supply chain that is beneficial for the wellington hospital to deal with the rising cost

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WELLINGTON HOSPITAL
of the operations and improve the services offered to the patients. With the help of a
transformative supply chain that involves setting up a holistic and overall governance system
whilst the implementation of robust processes and by automating the integrated information
technology systems in the equation. The supply chain of the hospital has the prime objective of
both mitigating the surge in the expenses and ultimately help in improving the services offered to
the patients at reasonable prices. It is understood that the greatest opportunity for the wellington
hospital is to transform and optimize the supply chain into a collaborative, strategic and vital
functions. Establishing a highly advance, mature supply chain involves the bringing in of an
inclusive structure for governance whilst implement robust process for the essential functions
like the procurement, management, handling of the materials, and integrating the IT systems
effectively.
JIT system of the wellington hospital
Just in time delivery system of the wellington hospital is very effective as the
management of the organization give more emphasis on the supply of the medicines and other
essential life saving instruments to the patients at the correct time in order to avoid any
emergency. The hospital has arranged all the process that enable them to maintain a scientific
system of maintaining the inventory in such a way that the exact item can be suppled at the right
time and it does not hamper the health of the patient. In hospitals it is very essential to ensure
that the medicines or any other equipment’s are available at the right time and can be utilized
whenever it is required. The management of the wellington hospital is very active and always
take necessary steps to ensure that the hospital never face the situation of unavailability of any
medical instrument or emergency medicines at any point of time. A just in time process of
inventory control ensure the optimum utilization of the inventory. In the just in time method the

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inventory is arranged in such a way that the correct item will be available at the correct time
when the actual use of that item will be required.
Another social service that is rendered by the wellington hospital is functioning as a non-
profit organization, pulling income by providing opportunities to physically handicapped people
referring them as “unemployable” for earning a living by recycling can be taken as an example
of a firm that is seeking for a triple bottom line. Board of volunteers govern the profits earned by
the organization, and then it is ploughed back to the community. The employment of physically
disabled people in a meaningful and moral way is the social benefit added to the system, this as
well reduces the welfare cost or the cost of disability in the society. From the recycling process
being carried out by these handicapped people, it also calls for environmental or ecological
benefits to the society (Cheng, Ioannou and Serafeim 2014). For privately owned institutions, the
commitment to stick to the corporate social responsibility (CSR) imposes a moral obligation on
the firm for addressing the public reporting about the substantial impact of the business for
contribution to better conditions to people and the environment (McWilliams et al. 2016). Triple
bottom line framework is used to analyze and report this material impact. It is prolonged outlook
that sets sustainability concerns and sustainable development besides the previously discussed
social, economic and environmental considerations (Ibrc.indiana.edu. 2019).
The wellington Healthcare group UK are a conglomerate of award winning, excellent
private hospital spread out throughout the UK. The location of the facilities spread out though
the UK is strategically placed, considering the reachability, patients, local health conditions and
so on. Following are the list of flagship hospitals along with their location operated by the HCA
healthcare group within the UK (Hcahealthcare.co.uk| HCA home 2019). The Wellington
Hospital situated at Wellington Place London, The Princess Grace Hospital, located at 42-52

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WELLINGTON HOSPITAL
Nottingham Place in London. The Portland Hospital situated at 205-209 Great Portland street in
London (The Portland Hospital Home 2019). The Lister Hospital, this hospital is located at
Chelsea Bridge Road at London. The Harley Street Clinic, located at 35 Weymouth Street at
London, The Christie Private care, the hospital is situated at Wilmslow Road in Manchester UK.
The London Bridge Hospital located at 27 Tooley Street in London. The HCA UK at the
Wilmslow Hospital, the hospital is situated at Alderley Road in Wilmslow.
Besides these flagship hospitals functioning under the wellington Group, the Group also
collaborates up with multiple health care and diagnosis centers across the UK to serve the
patients with their trusted and excellent services (Hcahealthcare Partnership 2019). The tie up
organization through which The HCA group are delivering their services to their patients are
Outpatient and Diagnostic Centre at 120 and 31 Old Broad Street in London, Abdominal Wall
and Hernia Unit at Chelsea Bridge London, Acute admission Unit at John’s Wood in London,
Advanced Colorectal Surgery Unit located at South Wellington in London. Barnes Private
Practice. For general practitioner services patient can visit at Blossom Healthcare located at
Tooley Street in London.
The Logistic mix of the wellington hospitals include the aspects of distribution channels,
logistic network, transportation, inventory management and capacity to be considered for
analysis. As per Sreenivas and Rao, 2019 for the distribution channel of the hospital, place is one
of the key element to be optimize and strategically decided for the effective distribution of the
services offered by the hospital. This implies that the hospital should be located such that patient
do not find it difficult in accessing it whilst it should be sufficiently remote from the pollution
and so that it is sufficiently protected. The report identifies the factors that lay significant effect
in the placing decisions are public transport network, local infrastructure, good road access

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WELLINGTON HOSPITAL
facility, location of potentially attractive consumers, competitors in the region, market size and
market structure by geographical regions. The hospital must be ideally located taking care of all
the above mentioned factors and must be easily accessible to all people secluded from the chaos
of the city (Smit et al. 2016). The other aspect under the under the logistic mix is the inventory,
for the hospital the size of inventory is usually bigger than the inventory involved in
manufacturing sector. The hospital needs to maintain a well-stocked inventory of medicines and
utilities in the inventory for instantly serving the consumers. However, the inventory can be
optimized by analyzing the consumer’s trend, the medicines prescription frequency or the
seasonal demand of the patients. Due to this fact, the capacity of the inventory at hospital is
sufficiently large to accommodate the urgent requirement of the consumers and proper analysis
of the condition and strategic management can help in optimizing the inventory functions at the
hospital (Iannone et al. 2013).
Conclusion
The essay tries to put a definition of Supply chain management and understands it
different functions like logistic management, inventory, warehousing or material handling. The
research is made considering the case of The Wellington Hospital a subsidiary of The HCA
healthcare group based in the UK. The essay identifies the key functions of the hospital as
colorectal surgery, Dermatology, Craniofacial surgery, foot and ankle, ENT, GPs, Gamma Knife,
Hand therapy. Hand and wrist, hybrid imaging, hip, ophthalmology, neurosurgery and so on. The
essay suggest that thirty percent of the total operational cost is accounted to the supply chain

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WELLINGTON HOSPITAL
functions in a hospital. Thus, it is of potential interest to optimize. The suggestions for
optimizing the supply chain is to use RFID in the inventory management, which even facilitates
the JIT to some extent (Lu, Lin and Tzeng 2013). Further, the wellington hospital is listed and
their location is detailed out. The key aspects for placing the hospital strategically are identified
as public transport network, local infrastructure, good road access facility, location of potentially
attractive consumers, competitors in the region, market size and market structure by geographical
regions

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WELLINGTON HOSPITAL
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