Today, we are releasing our 6th annual UPS Pain in the (Supply) Chain survey, conducted by the research firm TNS. The survey reveals insights into the top challenges facing global healthcare logistics executives and highlights their future investment plans. This year we added new geographies to the survey and probed deeper to uncover strategies that successful healthcare executives are implementing to overcome their top supply chain challenges.
We have identified two attributes that have surfaced among successful healthcare supply chain executives—they implement IT investments and leverage logistics and distribution partnerships as effective strategies to address several of their supply chain pain points and access new market geographies.
Regulatory compliance, product security and cost management are the top three supply chain concerns globally. But, for the first year since the survey’s inception, product security has surpassed cost management as the number-two issue, highlighting the proliferation of counterfeit medicines and the need for more security within the supply chain.
Healthcare logistics executives are also grappling with challenges from a constantly evolving legislative and economic environment while addressing the complexities of entering new markets. Globally, 50 percent of those surveyed are still feeling the impact of the economic downturn. Despite these struggles, healthcare executives plan to make strategic investments in their supply chains in the near future. Over the next five years:
- 84 percent plan to invest in new technologies,
- 78 percent will tap new global markets, and
- 70 percent plan to increase usage of new distribution channels and models to increase efficiencies and competitiveness.
Survey findings on investment plans and successful supply chain strategies show evidence of a coming shift in the industry as executives plan for transformation of their supply chains to meet evolving market conditions and business goals.
In addition to large-scale technology investment, global expansion and the deployment of new distribution models, executives are forging or deepening strategic partnerships with logistics experts as well as increasing their internal expertise to address areas such as regulatory compliance, product protection and cost management. Overlay resource constraints with the need reach new markets, and it’s no wonder partnerships are surfacing as an overarching theme as supply chain leaders leverage virtual distribution models to enhance their agility.
Click to learn more about this year’s findings. Are there any pain points that you can relate to? Which ones? How are you successfully addressing some of these challenges? Please weigh in on the survey findings – even if it includes something you’d like to see measured.
|Tags:||healthcare logistics, logistics, supply chain, supply chain management, United Parcel Service|