Summative Assessment on Supply Chain Management

WK 6 - Summative Assessment: Supply Chain Management
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WK 6 - Summative Assessment: Supply Chain Management
Background
As part of the organization’s supply chain management, there is an emphasis on value-based healthcare with services, supplies, and capital equipment supporting patient care. Logistics best practices also support the value chain. One of the main concerns in healthcare organizations in reducing the rising costs without compromising patient care and outcomes. The organization’s brand is associated with providing the best possible value while minting high-quality patient outcomes and safety. Economic decisions, cost reduction, supply chain best practices in the health care sector, and co-branding affect supply chain management.
Economics and impact on supply chain
In assignment 2, there was a focus on the Johns Hopkins Hospital (JHH) one of the most reputable hospitals and hospital system in the US. The hospitals supply chain ensures there are supplies, services and capital equipment to support patient care, and obtain the best value (Johns Hopkins Hospital, 2022). Producing and managing the quality of goods and services is one of the top priorities for the hospital. The effective and efficient supply chain management system supports customer service. There is also use of technology to streamline operations.
The organization leverages economies of scale in supply chain management. A global reputation (brand) helps attract different types of supplies that are efficient and necessary to support value-based care. Still, there is an emphasis on the efficient use of resources in an ever-competitive market where costs are rising, but there is greater demand for quality care. An effective supply chain reduces errors costs at the optimum inventory levels (Duque-Uribe, Sarache & Gutiérrez, 2019). The organization has focused on optimizing scarce resources across the supply chain as one strategy to improve overall efficiency in operations and service delivery. There is better collaboration between clinicians and supply chain stakeholders than before, but one of the concerns is the high nurse turnover. However, nurses' involvement in the supply chain is crucial to identifying the best services and products. At the same time, facility-level performance improves with getting supplies at the right time, quality, and quantity, which is one of the indicators of efficiency in supply chain management.
Supplies account for one of the largest shares of the organization's annual operating expense, and there is a need for the effective supply chain management. Identifying costs savings across the supply chain has also been crucial to improving efficiency in the supply chain. There is a close relationship between Johns Hopkins Hospital supply chain members and a focus on advanced inventory management practices to improve supply chain efficiency and advanced inventory management tactics (Johns Hopkins Hospital, 2016). Furthermore, there is close monitoring of ordering and usage and evaluating alternatives to expensive drugs. The organization has also embraced integrating technology as one of the priorities to advanced health care. In the past few years, th...