Supply chain strategies are more important now than ever. With changing consumer preferences and the ever-present challenge of inflation, businesses are compelled to adapt and innovate within their supply chains. To delve into this subject, we sat down with Meagan Pollak-Harrison, a Senior Spend Management Consultant with Direct Supply® Procurement Services (DSPS), to gain insights into the dynamic landscape of healthcare supply chain strategies, particularly in foodservice.
Meeting Evolving Consumer Expectations through Strategic Supply Chain Approaches
As the demand for locally sourced and sustainable food options continues to rise, healthcare supply chain strategies have found themselves at the forefront of this transformation. Meagan Pollak-Harrison emphasizes the importance of selecting strategic vendor partners, regardless of whether they are large suppliers or regional vendors. She suggests that regional vendors specializing in bakery, dairy, or produce can often be the conduit for locally sourced items, extending to other categories like meat and seafood. Through negotiation, contracts can be forged either directly or through Group Purchasing Organization (GPO) partnerships.
It’s also important to note the role of broadline distribution partners in facilitating the adoption of sustainable practices. These distribution centers often offer a blend of local and conventional products, enabling businesses to embrace sustainable practices while adhering to familiar purchasing routines. By focusing on specific categories, like eco-friendly disposables, organizations can gradually integrate sustainability into their operations, fostering familiarity with various products and their budgetary implications.
Leveraging Technology and Data Analytics to Navigate Inflation Impacts
In a world characterized by inflationary pressures, technological integration becomes a vital tool for managing supply chains efficiently. Pollak-Harrison strongly advocates for the integration of technology and data analytics to optimize procurement and supply chain management. She believes that without these tools, businesses are missing out on valuable cost-saving opportunities, particularly in the face of the healthcare supply chain’s increasing volatility.
The evolution of the Direct Supply DSSI™ Order Guide Management technology, specifically the patented OGM® 3, is a case in point. This technology revolutionizes the management of order guides, centralizing the process and enabling the identification of cost-saving opportunities. Artificial intelligence (AI) further enhances these capabilities, automating the discovery of potential cost savings. This technology-driven approach has empowered providers to outperform inflation rates, as demonstrated by the 6% lower food PPD achieved by Direct Supply DSSI providers using the proprietary OGM.ai™ technology compared to the Food Away from Home inflation index of 8.3% in 2022.
Mitigating Challenges: Overcoming Labor Shortages and Supply Chain Disruptions
Challenges like labor shortages and supply chain disruptions have become recurring themes in recent years. Pollak-Harrison identifies the issue of product substitutions as a notable concern. However, solutions like the DSSI OGM 3 technology provide an effective means of navigating these challenges. Centralized order guides prioritize similar products and integrate with alternate product selection functionalities. This real-time inventory check ensures that, when an intended product is unavailable, appropriate backup options are presented to the purchaser. This approach not only enhances visibility and control over delivered products but also facilitates on-the-spot decision-making based on price, quality, nutritional value, and more.
Building Resilience through Collaboration and Industry Expertise
The value of collaboration and partnership is particularly evident when addressing unpredictable events such as pandemics or natural disasters. According to Pollak-Harrison, cultivating robust partnerships within the supply chain is essential for establishing emergency preparedness plans. Strong relationships ensure swift communication and problem-solving when faced with unforeseen challenges. During the pandemic, partnerships allowed businesses like Direct Supply DSSI and Sysco® to optimize order acknowledgement processes, adapting rapidly to changing dynamics and ensuring clear communication with the end users.
Future-Proofing Supply Chain Strategies for the Healthcare Industry
As we look ahead, emerging trends in supply chain strategies for the healthcare industry come into focus. Pollak-Harrison suggests that staying ahead of the curve involves embracing evolving technologies and approaches, such as further integration of AI and data analytics. By fostering an environment of innovation and adaptability, healthcare providers can navigate emerging challenges and provide the best possible experiences for their patients and residents.
The Bottom Line
Healthcare supply chain strategies are undergoing a transformation in response to shifting consumer behaviors and the persistent challenge of inflation. Technology, collaboration, and a proactive mindset are crucial components in not only surviving but thriving in this dynamic landscape. With insights from experts (like the folks on our procurement services team), businesses can develop strategies that are both resilient and agile, capable of navigating the uncertainties of the future.
Interested in learning more? Read about the benefits to supply chain automation in healthcare.
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