Working out logistics for efficient delivery

Working out logistics for efficient delivery

The medical industry relies highly on the type and cost of equipment being used. For the better part of the past two decades, almost every major hospital has spent its time in choosing and working out the best tools, implants and expensive equipment for different domains such as cardiology, neurology and orthopedics. The implants used in the operating rooms contribute to a large part of the hospital’s procurement cost. Hence, procurement managers have to focus more and more on the reduction of the expenses incurred on these items. The supply chain costs are very high in India, which is why it is crucial to address the underlying issues in logistics.

As the surgeries for replacement usually have a flat fee, the hospital sometimes is not able to make any money from the procedures and ends up being in a loss, especially if the cost of the implant or the equipment needed is too high. The usual bundled payment received is unable to make up for the total expenses made. This is the reason why several supply chain experts and executives have to go through every single detail of the PPI or the physician preference items. Whether it is sterilization or distribution and management- the hospital scrutinizes the delivered equipment or product to cut down on expenses.

Logistics paving the way

With an aim to cut down on the cost, consulting companies have come up with a solution for hospitals to limit the variety of equipment and follow standardised results. Enabled by software and data experts, standardization now helps the hospitals and care centres in controlling the number of brands for a product and ensuring higher volumes for the ones selected leading to a lower price.

Whether it is the courier or the delivery through a representative’s vehicle the shipping as well as handling charges of the equipment often costs a fortune. This leaves the hospitals and end consumers with a hefty bill with added surcharges.  Distribution is a crucial area where the care centres and hospitals need to cut costs. The manufacturers of devices and equipment are heavily invested in improving the quality and prolonging life but unfortunately, none of them is working out on the logistics to manage time and other resources efficiently. Surely, this is not what they excel in, but a responsible initiative needs to be taken so that the supply chain costs can be reduced for every party.

The current trend and needs

The current trend in India is of the manufacturers sending in the products through distributors who charge tremendously high costs for shipping and handling operations. In order to make sure that at least a 10% reduction in costs for a hospital is possible, we at Smart Medical Buyer have introduced our services in the medical industry with an aim to make inventory management absolutely affordable for the hospitals. Our well managed logistics and inventory operations aim to lower the supply chain costs for all hospitals and care centres, without any compromise in quality.

Asik Das

Asik Das

Asik has worked for over 9 years in the healthcare and insurance domains. He has extensive experience of working in the cardiology and peripheral intervention markets in India.
Asik Das

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