Hospital supply chain strategy

As part of establishing a major multi-specialty tertiary care center, the client engaged Strategy& to help develop its supply chain strategy and operating model.

The Strategy& team started with analysis of current regional and global healthcare trends and best practices in hospital supply chain management to derive key lessons for the client. Several supply chain operating models were considered ranging from centralization to outsourcing. The choice of the target model was driven by the objective to balance ‘Patient Outcomes’ while managing the ‘Costs to Treat the Patient’. Once the target model was chosen, the team designed key supply chain functions and estimated the corresponding manpower and financial requirements.

Given the Greenfield nature of the hospital, a detailed and realistic roll-out plan for the supply chain organization was developed that factored-in gradual evolution to the target model over time.