To build a patient-centric supply chain, healthcare organizations must sift through the multiple stakeholders separating them from the patient. By successfully integrating the patient experience into supply chain processes, supply chain leaders can do their part to promote better patient outcomes and improve health systems’ bottom lines.
Introduction
The healthcare supply chain may be falling behind other industries when it comes to customer innovation. A recent research report from Gartner found that only 19 percent of life science supply chain leaders were focused on customer experience.
As Gartner indicates, this disconnect from the patient experience is largely because there are several layers of third-party suppliers, providers, and other customers that separate supply chain leaders from the patient.
However, a more patient-centric supply chain can support both improved patient outcomes and a more prosperous healthcare organization. In addition, patient centricity is particularly critical at a time when sites of care are shifting more into patient’s homes.
In the following article, we discuss the benefits of a patient-centric supply chain and the necessary steps towards building one. These steps include gaining more patient insights, designing supply chain activities with patients at the forefront, and leveraging technology to innovate closer to patients.
The what and why of patient-centric supply chains
The term “patient-centric supply chain” has been used in the industry for several years now and is continually evolving. At its core, a patient-centric supply chain is a supply chain that is built to support patients’ needs from end to end.
As such, a patient-centric supply chain prioritizes the patient experience first and foremost. It ensures that everything from the procurement, distribution, and end use of a product ultimately supports patient outcomes.
There are multiple benefits of a patient-centric supply chain. First, patient-centric supply chains can be more efficient. For example, one urban hospital eliminated $1.5 million in medical supply costs by adopting supply chain best practices from other industries that prioritize the customer (or patient) experience.
This point is especially critical at a time when cost savings are top of mind for supply chain leaders. This is largely due to the sharp rise in healthcare costs resulting from post-pandemic inflation.
Patient-centric supply chains also lead to a better patient experience and therefore better patient outcomes. When patients have a role in informing supply chain strategies and best practices, their needs are more likely to be adequately met.
Building a patient-centric supply chain
It’s impossible to build a patient-centric supply chain without a deep understanding of the patients themselves. As such, the first step to creating a patient-centric supply chain is to research the patient experience.
This research may include:
- Gathering feedback through patient surveys and focus groups
- Visiting patients in various healthcare settings
- Researching best practices from industry peers
- Customer journey mapping, or the process of analyzing a patient’s experience relative to their expectations of it. This method can give supply chain leaders tangible steps to address any gaps in their supply chain processes.
All the data gathered from this step can then inform the re-structuring of supply chain processes. Unlike more traditional approaches, designing a patient-centric supply chain starts with the patient, rather than ending with them.
Gartner offers a few recommendations when rethinking the supply chain for patient centricity:
- Start with the patient and work backward, considering distribution, manufacturing, and raw materials with the patient’s perspective in mind.
- Leverage technology to gather insights into real-time demand. This step can help improve lead times to promote better service, optimized inventory, and reduced costs.
- Understand the nuances in go-to-market dynamics, including the manufacturing and product delivery process through the last mile.
- Consider the services or additional products that may be a value-add to existing products or therapies in your pipeline.
Lastly, technological innovation is key to promoting patient centricity in the healthcare supply chain. Many supply chain leaders are already recognizing the importance of technology in modernizing supply chain activities in general. Additionally, technology solutions can help supply chain leaders innovate closer to their patients in several ways:
- Software tools can help healthcare organizations access real-time insights into patient demand as well as forecast future demand.
- Shipping software and technology can help health organizations improve last-mile delivery, especially to patients in rural or remote areas.
- Advanced technologies such as AI and machine learning can automate certain supply chain processes and provide more powerful insights.
Conclusion
The concept of the patient-centric supply chain has existed in the industry for a decade or more. However, strategies to implement these principles are still behind relative to other industries.
Patient centricity in the healthcare supply chain can drive efficiency and foster a better patient experience, ultimately boosting patient outcomes. By prioritizing patients’ perspectives at each step in the process, supply chain leaders can unlock these benefits and more.
About VPL
We modernize clinical supply chains to support healthier patients. Our technology-driven solutions and consultative customer experience empower health systems and outpatient pharmacies to build smarter, more resilient supply chains. With over 700 hospitals and a 97% customer retention rate, we’re trusted to deliver transparency, cost savings, and peace of mind.
