Self-distribution is an increasingly popular option for healthcare systems to consider when deciding how to manage their supply chain. The challenges brought about by the pandemic made many rethink strategy when it came to inventory, stock on hand, secondary options and the ability to guarantee supply and resiliency.
This approach has several advantages, including cost savings due to reduced reliance on third parties, improved control over inventory levels, better customer service and more efficient use of resources. However, there are also potential drawbacks that need to be considered before making the decision whether or not self-distribution is right for any particular healthcare system. In this article we will explore four factors that must be thoroughly evaluated.
Self-distribution can result in improved inventory levels and shorter lead times, which can help to reduce costs over time and enable healthcare systems to better meet the demands of their customers especially with on-premise space continuing to be at a premium. However, if a healthcare system is not able to effectively manage its distribution operations then it may end up incurring more expenses than it would have otherwise. That’s why they need to bring a distribution process efficiency mindset that includes investments in technology and automation.
The post Editor’s Choice: 4 Factors to Determine if Self-Distribution is a Viable Alternative for your Health System appeared first on Logistics Viewpoints.