Supply chain innovation and organizational performance in the healthcare industry

The drug logistics process: an innovative experience

Purpose

– The purpose of this paper is to present the latest innovations in the drug distribution processes of hospital companies, which are currently dealing with high inventory and storage costs and fragmented organizational responsibilities.

Design/methodology/approach

– The literature review and the in-depth analysis of a case study support the understanding of the unit dose drug distribution system and the subsequent definition of the practical implications for hospital companies.

Findings

– Starting from the insights offered by the case study, the analysis shows that the unit dose system allows hospitals to improve the patient care quality and reduce costs.

Research limitations/implications

– The limitations of the research are those related to the theoretical and exploratory nature of the study, but from a practical point of view, the work provides important indications to the management of healthcare companies, which have to innovate their drug distribution systems.

Originality/value

– This paper analyzes a new and highly topical issue and provides several insights for the competitive development of a fundamental sector.

Collaborative purchasing of complex technologies in healthcare

Purpose

– The purpose of this paper is to investigate how buyers and the vendors pursue alignment in collaborative purchasing (CP) of complex medical technologies.

Design/methodology/approach

– Through a literature review in CP, the paper identify factors for shareholder alignment (i.e. aligning the needs of the buyers within the purchasing group) and customer alignment (i.e. aligning buyers’ needs with the vendors offering strategies) and investigate how they manifest in the case of CP of complex technology in the Danish National Healthcare System.

Findings

– Shareholder alignment requires appropriate management of the relationships, expertise and guidance in simplifying procedures and effective management of the purchasing group. Customer alignment is facilitated by buyers’ understating of the vendor’s design options, which are moderated by the vendor’s design strategies.

Research limitations/implications

– The findings and generalizations from a single case study are limited to the complexity of the purchased technology and the specific cultural context. However the paper represents the first explorative study that poses the attention on the relevance of shareholder and customer alignment in CP.

Practical implications

– The study can offer hospitals, vendors, governmental and regional institutions a better understanding about the alignment mechanisms for successful implementation of CP and how to avoid pitfalls.

Originality/value

– Literature on CP is scarce as there are virtually no contributions that debate the key elements and tradeoffs that need to be considered for strategic alignment. The study addresses this gap.

An exploration of quality management practices, perceptions and program maturity in the supply chain

Purpose

– The purpose of this paper is to examine differences among industry classes and supply chain positions in order to gain insight into quality management program maturity across industries and within supply chains.

Design/methodology/approach

– Data for comparison in this study comes from an e-mail survey of professionals across the USA, employed primarily in sourcing or logistics (i.e. Institute for Supply Management (ISM) and Council for Supply Chain Management Professionals (CSCMP)).

Findings

– This study found that quality maturity varies by industry class. While prior studies have found differences by industry class, they have been limited to at most three classes, while this study examined 17 classes. This study also examines quality maturity by supply chain position, with the finding that quality maturity differed by supply chain position depending on how position is defined. Questions are raised regarding the proper characterization of supply chain position.

Research limitations/implications

– The sample group represents members in only two professional groups, ISM and CSCMP. Not all industry groups or supply chain positions were well-represented due to some small sub-group sizes.

Practical implications

– Quality program maturity is generally not uniform and there are potentially many opportunities for substantial improvement across various sectors by specific industry. Partnering with suppliers is a recommended approach for sectors lagging in quality maturity.

Originality/value

– This research extends the examination of quality management practice in the supply chain by studying a large number of industry classes and supply chain positions and assesses differences in quality maturity across these classes and positions.