According to a recent survey by Sage Growth Partners, supply chain management is now hospital leaders’ second most important priority; outranked only by patient safety. Although the healthcare supply chain has always played a key function in healthcare operations, rarely has it ranked second in order of priority. This change occurred at the onset of the 2020 global pandemic. The healthcare supply chain transformed overnight as demand for PPE skyrocketed and costs soared right alongside of demand. An IBM survey discovered between 59-83% of organizations reported delays or increased lead times in acquiring supplies since the onset of the pandemic. In response, 81 percent of these organizations adjusted their inventories, most by increasing inventory levels, to weather the demand fluctuations and disruptions. Despite unprecedented challenges brought on by COVID-19, advanced healthcare technology solutions have enables healthcare companies to expedite the transformation of their supply chain to leverage optimum efficiency in day to day business. According to IDC, 62 percent of hospitals increased spend on supply chain applications and 64 percent of executives called their cloud-based supply chain management applications “business-critical.” The pandemic has shined a light on vulnerabilities within the healthcare supply chain like lack of efficiency and visibility; however, structural weaknesses are not new to the industry supply chain. Historically, the healthcare industry has relied on manual processes for day to day operations. One of the biggest challenges we have seen in the industry is its dependence on paper. A majority of healthcare companies still use paper-based accounts payable processes which typically result in problems like late payments or payment delays causing a strain on supplier operations and supplier relationships. To improve supplier relationships and create relationship sustainability and to invest in technology to crisis-proof operations, supply chains need working capital on hand to fund new priorities and initiatives. Supply chain finance brings stability and flexibility to the healthcare supply chain benefiting key stakeholders like Buyers and Suppliers. With a revolving credit facility, Buyers and Sellers can mitigate cash conversion risks, invest in technology and eliminate antiquated models, improve supply chain visibility, and so much more. Learn how you can unlock a capital safety net so you can keep the supply chain moving and business growing at all times. To discover more, please contact us at email@example.com.
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