Healthcare Supply Chain 101: Part I of III
First in a 3-part series on Healthcare Supply Chain.
Healthcare: No matter where you live or what you do for a living, it’s a hot topic. But for supply chain professionals in Ontario, it has recently become the topic.
Ontario consumes more healthcare resources than any other province in Canada: In 2010 alone, the province will spend more than $91 billion - $7,627 per Ontarian. This translates into a significant amount of procurement activity.
In an effort to increase supply chain efficiencies in the Broader Public Sector (BPS), the Ontario government has established the Supply Chain Guideline [http://www.fin.gov.on.ca/en/ontariobuys/documents/scg.html]. Effective April 1st, 2010, Ontario hospitals, among other organizations in the BPS, were expected to establish and implement standardized, rigorous procurement policies and procedures aligned with the Guideline. Coincidentally, the evolution of regional Shared Services Organizations (SSO) in Ontario is transforming the way some hospitals source products and services. These SSOs leverage total spend and remove non-value-added costs on behalf of their member hospitals, allowing the hospitals to redirect the savings into direct patient care.
What does this mean for Supply Chain?
For supply chain professionals, it's time to consider specializing in healthcare-related supply chain. We're already seeing an increased demand for supply chain practitioners who have healthcare experience or who can easily transfer their skills from other industries, and we expect this trend to continue for at least the next 3 years.
For healthcare-related suppliers, the evolution of the SSOs and the Supply Chain Guideline is going to require a more rigorous, sophisticated supply chain function, with increased focus on customer service and efficient operations.
In other words, there's never been a better time to be in supply chain - and there's never been a better opportunity for supply chain to have a direct, positive impact on the life of the average Canadian.
For candidates and employers alike
Whether you're a supply chain professional considering your next career move, or a hiring manager looking to recruit supply chain practitioners in healthcare-related industries, over the next 3 months we'll be examining what these changes will mean.
Part II: How Supply Chain/Procurement professionals from other industries can make the move to healthcare. (Hint: It's easier than you think.)
Part III: How hiring managers and recruiters can source, screen and secure top supply chain professionals in an increasingly competitive talent market.
This article by guest expert Sarah Friesen, President of Friesen Concepts and guest lecturer at the Schulich School of Business and York University. With more than 25 years' supply chain experience, Sarah specializes in implementing effective supply chain solutions for hospitals, SSOs and the private sector. For more information, visit her website.
