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The Human Element in Supply Chain Management

Oct 31, 2024 | The Pharma Flow

In an AI powered world, this “Hidden” element could be costing your Sourcing Team efficiency, time and money.

Hint: It has two eyes, opposable thumbs, and unlocks their phone 150 times a day…

At Broughton Pharmaceuticals, we bring over two decades of experience working alongside healthcare professionals to tackle some of the most pressing supply chain challenges. Your day-to-day challenges: – managing your boss or team, the budget, back and forth with vendors, emergencies, stuff just being out of your control – We get it. Our deep knowledge of pharmaceutical sourcing, compliance, and real-time market intelligence uniquely positions us to understand the complexities faced by procurement professionals today.

This newsletter is designed to provide you with actionable insights based on extensive research and hands-on experience from our daily involvement with people in your seats in health networks across the country. The information we share is grounded in real-world experience from our expert team and our robust community of pharmacy and supply chain leaders.

Our Mission: We are committed to helping healthcare organizations build resilient, efficient supply chains that improve patient outcomes. We do this by serving healthcare leaders, so the patients will be in great hands.

We’re starting with supply chain management because it’s at the heart of healthcare operations and has a direct impact on patient care, costs, and compliance. As supply chains grow more complex, it’s crucial to share insights that can help healthcare leaders stay resilient and efficient.

The Strategic Importance of Supply Chain Partners is Greater than Ever

Healthcare supply chains have never been more critical. As they move beyond transactional features, supply chains are now recognized as strategic assets that impact every aspect of a healthcare organization’s operations. This shift underscores that effective supply chain management is about more than just obtaining the latest technology— (Get ready for it) it’s about people, processes, and alignment across the organization. Good old fashioned, communication, analysis and effort towards clear objectives creates a powerful operation. Then add the tech du jour – AI, blockchain, predictive data, your choice.

Overcoming the Challenges Will Take More than Technology

Supply chain professionals and pharmacy buyers face enormous challenges: rising costs, complex regulations, and the constant threat of drug shortages. In a system where up to 40% of hospital spending comes from external sources, optimizing supply chain performance is crucial.[1] Despite these challenges, resilience can be achieved through strategic investments in people and relationships, not just technology.

As Tom Coleman notes, “Organizations can’t build a resilient supply chain without considering the impact of people and ensuring that the implemented technologies complement staff capabilities”.[2]  This emphasizes the need to focus on the human element within the supply chain. More than half of supply chain leaders highlight that while technology improves processes, the real strength comes from collaboration between supply chain teams and clinical staff. With a focus on winning strategy and execution, Leaders should certainly leverage experienced resources internal and external to the organization.

The Role of Aligned Relationships in Supply Chain Success

Building strong relationships between internal or external supply chain teams and clinicians is essential. McKinsey research shows that effective supply chain strategies often begin with in-person discussions between procurement teams and clinical staff.[2] These conversations provide critical insights into product choices, procedure costs, and contract compliance, leading to better-informed purchasing decisions and smoother operations.

Effective healthcare supply chain management goes beyond technology—it relies on strong relationships, collaboration, and strategic investments in people and expertise. By fostering close communication between market experts, supply chain teams and clinicians, organizations can make better decisions, enhance resilience, and improve patient outcomes. As supply chains become more central to healthcare operations, clear strategic alignment and focusing on the human element will be key to long-term success. Get to the finish line. Work with people that win when you win.

What’s Next

In our next newsletter, we’ll explore the essential tools and strategies that can optimize your supply chain, followed by insights on how to effectively align technology with clinical teams to ensure smooth, resilient operations. Stay tuned!

 

 

Explore Our Sources

We pride ourselves on bringing you a newsletter filled with relevant, sourced information.  Feel free to check out and  read more from the articles we’ve sourced.

1.40% of hospital spending comes from external sources
Optimizing Health System Supply Chain Performance
McKinsey & Company, August 23, 2022

2. The importance of people in supply chain resilience
Key Determinants For Resilient Health Care Supply Chains
Deloitte , April 25, 2022