Demand Planning in the Healthcare Industry
Demand forecasting in healthcare delivery networks has been a topic of conversation for more than a decade but hasn’t been deemed “mission critical.” Because the demand planning concept in healthcare is so new, executives must learn from other industries’ supply chain leaders for a view into what a successful supply chain planning roadmap looks like. The current supply chain environment for healthcare providers is influenced by limited knowledge from the end users and leadership, which makes for low engagement and inability to secure investment for significant improvements.
Healthcare providers are either experiencing issues with too much or not enough inventory. The recent PPE shortage was an example of how many healthcare providers lack forecasting capability in their supply chains. Planning the correct inventory balance, even beyond the current pandemic, is a crucial supply chain advantage for today’s healthcare providers. In a recent Gartner research article, they stated, “Demand is fragmented for manufacturers in healthcare, where no single IDN (integrated delivery network) in an established market like the United States represents more than 2% of the volume.”
Post-COVID-19, IDN’s that can better forecast demand on critical supplies as well as non-critical care items demonstrate many key benefits:
- Better financial performance
- Lower risk
- Increased service to providers
- Fewer out of stock and expedited orders
- Ability to optimize inventories across multiple sites
Healthcare networks can utilize technology to determine clinical demand signals, data requirements and better predict and respond to changes in patient and provider need.
How to Start:
The healthcare industry must leverage learnings from other verticals like CPG or medical device companies and build a team through reskilling or hiring. Organizations can also leverage existing technology by enabling business intelligence teams and gain organizational alignment to the importance of accurate business analytics.
Plantensive and Pivot Point Consulting can help your organization roadmap your current supply chain strategy and get your demand planning capabilities off the ground. By combining the Best in KLAS Overall IT Services team and the advisor to many of the world’s most recognizable supply chains, Pivot Point Consulting & Plantensive can help you decide where to begin. Reach out to us today and we can help improve your service to the caregivers while reducing costs.
Plantensive and Pivot Point Consulting can help your company roadmap your current supply chain strategy and get your demand planning capabilities off the ground.
