Supply Chain

disruption in
Healthcare Logistics
 B-13
 Parshva Shah-10232777
 Praneeth Singana-10232921
 Niharica Pingala-10232537
 Snehil-10233713
 Kalyani Gaikwad-10232105
  Right at the heart of the industry to mitigate the
global COVID-19 impact
• Ensuring production and supply of essentials & medical
Healthcare assets where they needed to be at just the right time
Logistics • Leveraging its network & expertise to help organisations as
Industry diverse as pharmaceutical giants, CROs, biotech start-ups,
patient support groups and government agencies with
Covid-19 specific initiatives across all regions
 Trying to be a resilient healthcare supply chain
by combating rising costs, sudden spike in demand and
timely delivery of the products
 Viewpoint of a Tier 1 Supplier

•Lack of products
Managing the product •Unwillingness to supply below certain
Distributor
demand of clients like Apollo price (price conflict)
1
Hospitals, while specializing in •Political and competitive pressures
limited domain

•Low production capability to meet

demand
Highly distributed Verticals of Manufacturer
•Bound to set agreements to not serve
2 supply chain: challenges with outside entities
distributors, manufacturers, etc.
like Dr. Choice
•Lack of contract
Logistics resources, connections, or capacity
to execute logistics
Complications in Logistics due
3 to expanded (and •Requirement of resources to manage
urgent) geographical and the inventory
quantitative requirements Warehousing
•Lack of/inefficiencies in handling shelf
spaces
 Q. What enables present day long chain supply?

- Present transparencies in multi-tier supply chains, establishing a list of critical components, determining the origin of supply, and identifying
alternatives.
- Extensive access and experience, helping with decisions w.r.t. available inventory —including spare parts and after-sales stock— as a bridge to keep
production running and enable delivery to customers.
- Technological assessment allowing realistic final-customer demand and respond to (or, where possible, contain) shortage-buying behavior of customers.
- Optimized production and distribution capacity for ensure employee safety, such as by supplying personal protective equipment (PPE) and engaging
with communication teams to share infection-risk levels and work-from-home options.
- Consulting/expertise on logistics capacity, estimating and accelerating, where possible, and being flexible on transportation mode, when required.
- Policies and partnerships nudging more professional management cash and net working capital by running stress tests to understand where supply-
chain issues will start to cause a financial impact.

 Q. What role did length of present-day supply chains play in covid-19 supply chain crisis?

The characteristic long length of the supply chain facilitated easier sourcing of lacking resources such as cylinders, availability of innovative vaccine
solutions and sourcing materials like nucleoside phosphoramidities beyond the country of origin whereas short chains lack global sourcing and delivery
methods and easy access to new innovations.

 Q. What supply chain configuration changes are companies considering to lessen potential impact of future global disruptions ?

Digital transformation of the supply chain process by leveraging ERPs, CRM packages, B2B tracking of consignments and digitiz ation of manual processes.
Determine critical components and determine origin of supply.
Assess the risk and look for alternatives sources if suppliers are in severely affected region. Conduct scenario planning and assess impact on operations
based on available capacity. Optimize limited production as per the opportunity cost/penalty. Diversifying or stock-piling based on analysis.
Leverage direct to consumer channels of communication. Use market insights/external database to estimate for customer's consumers.
Estimate inventory along with value chain including spare or remanufactured products. Use after sales stocks as a bridge to keep the production running.
Estimate when supply issues will start to stress financial or liquidity issues. Analyze the root causes of suppliers’ nonessential purchases, mitigating them
through adherence to consumption-based stock and manufacturing models and through negotiations of supplier contracts to seek more favorable terms.