A STUDY ON “HEALTHCARE SUPPLY CHAIN

MANAGEMENT OF PARAS HOSPITAL ”

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

(SESSION 2021-2024)
SUBMITTED BY –PEERZADA WAJAHAT
ROLL NO. – 2103001028

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

RAYAT BAHRA UNIVERSITY, MOHALI.

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 ACKNOWLEDGEMENT

First, I would like to thank my institution- Rayat Bahra University where I am

pursuing the course of Bachelor of Business Administration. Second, I would like to
express my gratitude to Ms. Alka for expert guidance, support and encouragement
that helped me in the completion of this project. I would like to give special thanks
to all respondents whose precious response helped me to complete my project and
my friends and family for the help and kind support.

With Regards

PEERZADA WAJAHAT

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 FACULTY DECLERATION

I hereby declare that the student Peerzada Wajahat of BBA has undergone
her project under my periodic guidance on the project titled “HEALTHCARE
SUPPLY CHAIN MANAGEMENT OF PARAS HOSPITAL ”. Further I hereby
declare that the student was periodically in touch with me during the making
of this project.

(Signature of Supervisor)
 INDEX OF CONTENTS

SR. CONTENTS PAGE

NO. NO.
1 CHAPTER – I INTRODUCTION 6-30

 INTRODUCTION TO COMPANY
 INTRODUCTION TO TOPIC OF RESEARCH

2 CHAPTER – II LITERATURE REVIEW 31-37

3 CHAPTER – III RESEARCH METHODOLOGY 38-42

 INTRODUCTION TO THEORETICAL
FRAMEWORK
 PROBLEM STATEMENT
 RESEARCH DESIGN
 METHODS OF DATA COLLECTION
 LIMITATIONS
 ROOT CAUSE ANALYSIS

4 CHAPTER – IV DATA ANALYSIS AND INTERPRETATION 43-52

5 FINDINGS, SUGGESTIONS & CONCLUSION 53-55

6 BIBLIOGRAPHY & ANNEXURE 56-61

 QUESTIONNAIRE
 REFERENCES
CHAPTER 1: INTRODUCTION
 INTRODUCTION TO COMPANY

1.1 History of PARAS

Since 2006, Paras Health has aimed to build a healthy Bharat by providing affordable,
accessible, and high-quality healthcare services. Paras Health’s mission is to make
affordable and quality tertiary health accessible to communities that lack such
services. Paras Health’s visual identity emphasizes its 4 brand values - Compassion,
Accessibility, Affordability and Quality that converge to make its vision a reality for
all Bhartiyas. Paras Health has been delivering world-class clinical outcomes by
staying abreast with the latest developments in the scientific field and combining
cutting-edge technology with our extensive & renowned medical expertise.

The company is a network of 6 hospitals in Northern India that operates 1500 beds as
of date. The chain started with its first hospital in Gurugram in 2006, expanded to
Patna, Darbhanga, Udaipur, Panchkula, Ranchi, and now extending itself to Srinagar
& Kanpur. Paras Health aspires to be the largest private healthcare provider in North
India by 2031 with 9000+ beds under its network. Of this, around 5000 beds will be
added by FY 2028 through organic and inorganic expansion. The committed
expansion pipeline of 2,000 + beds will be met through expansion at Kanpur,
Srinagar, and Panchkula.
 GROUPCOMPANIES

Chaudhary Ved Ram Nagar ji, the founder and promoter of our company is one of the
connoisseurs in the dairy farm industry. Ved Ram & Sons established their first unit
in 1987 under company’s name VRS Foods Limited and since then the latest
equipment and facilities enable them to cater to the needs of their clients by selling
over 2, 50,000 liters of milk per day in Delhi Metro.
At the heart of the entire network of Paras are hundreds of Village level collection
centers covering 5000 villages across Western UP, Haryana, Rajasthan, Maharashtra
and Gujarat. The farmers are assisted financially, to buy cattle, feed, veterinary
services and other infrastructure support.

Backed by a decade’s worth of experience and an abundance of expertise, Paras Build

tech has pioneered the conceptualization and execution of upscale real estate projects
in the retail, commercial and residential space.
Adding to the array of services offered, it also sees the project through each stage
right from site acquisition, designing and development to construction, marketing and
sales.
Today, Paras Build tech is known to be one of the leading names in Indian real estate
development and has done so by assuring its clients and business partners a sense of
utmost quality and reliability.

State of the art school with international facilities to ensure that the your children get
the best education, learning environment and direction. Paras World School aims at
facilitating thegrowth and development of every child that enters its portals. The aim
of the school is to touch thelives of the children and the community to envisage
brighter future or all.

With a rich history, valuable business experience, industry knowledge and a tradition
of achievement under its wing, Paras views its participation in the educational sphere
with optimism and resolve.

Paras Health initiated with the inception of Paras Hospitals, Gurgaon in the year 2006,
with the vision of providing specialized super specialty tertiary care services to the
community at large. The aim of Paras Health is to ensure that the dream of
‘Healthcare for All’ is a reality. We aim at establishing specialized centres at locations
where access to healthcare is difficult and super specialty tertiary care is not available.
1.2 VISION AND MISSION OF PARAS HOSPITAL VISION:

Paras Healthcare aspires to be the preferred Healthcare partner for the community.
We will initiate all our endeavors based on the 3 tenets of Healthcare – Affordability,
Accessibility & Quality Healthcare.

MISSION:

 Paras mission is to provide the best quality medical service with utmost
responsibility and compassion.
 Our management ensure that every patient get the best possible treatment
whether preventive or diagnostic.

1.3 PARAS HEALTH BRANCHES

PARAS HOSPITAL, GURUGRAM

PARAS HOSPITAL, PANCHKULA

PARAS HOSPITAL, PATNA

 PARAS HOSPITAL, UDAIPUR

PARAS HOSPITAL, DARBHANGA

 PARAS HOSSPITAL, RANCHI

1.4 Achievements of Paras Heath Hospital

 Paras Health’s 1st flagship Hospital established in 2006

 The facility has 283 beds strength with more than 30 super specialties
providing a full spectrum of tertiary care medical ad surgical interventions
 Haryana’s 1st Hospital to be accredited by NABH and NABL
 1st Hospital to have a stand alone image guided tumor navigation surgery
technology.
 The only facility of the region to advocate Transradial Interventional
cardiology.
 Paras Hospitals, Gurgaon is the first neuroscience Centre in the region that
operates on deep seated tumours
 India's first successful day-care angioplasty was done at Paras Hospital,
Gurgaon.
 Awarded the Best Healthcare Campaign for Breast Feeding Rooms in Public
Places at Six Sigma Healthcare Awards Function 2015.
 Dr. (Prof.) V. S. Mehta, Paras Hospitals, Gurgaon awarded Lifetime
Achievement Award at 6th MT India Healthcare Awards 2016 presented by
Medgate today
  Awarded Best Hospital for Neurosurgery and Neurology in Delhi NCR at
Times Achievers Awards 2017
 Awarded the Best Hospital for Neurosurgery and Neurology for International
Patients in FICCI Medical Value Travel Event, 2017
 Dr. (Prof.) V. S. Mehta, Paras Hospitals, Gurgaon wins the most trusted
hospital from Readers Digest.

Accredited:

Paras Hospitals is Full NABH Accredited.

Certification Assuring the Highest Level of Medical and service Quality

1.5 FACILITIES

The OPD should have the following facilities:

1) Entrance-easily accessible with ramp, steps and wide door.

2) Flooring-tiled with a slope towards outlet
3) Reception/enquiry
4) Waiting Hall
5) Consulting rooms
6) Signboards and layout plan
7) Bay for trolleys and wheelchairs
8) Toilet-separate for males and females
9) Public telephone
10) Board indicating names of consultants on leave
Types of Clients in OPD:

 Emergency cases
 Referred cases from doctors outside and in-house
 Direct OP cases
 OPD is the first point of contact in the hospital and so the best impression
should be given.

Flow Pattern of Clients in OPD:

Enquiry – Registration – Waiting Hall – Consultation room – Investigation facilities –

Pharmacy – Exit

• Usual Problems in OPD

• Lack of punctuality in starting OPD
• Lack of appointment system
• Missing files
• Non-availability of laboratory results
• Lack of physical facilities
• Proper co-ordination Under expert supervision and guidance can go a
long way to solve these problems.

In patient Service (IP):

If OPD is the show window of the hospital, the IP is the heart of the hospital. The IP
service provides lodging, diet, and medical care. Conveniently, it can be divided into:

• Wards and Rooms

• Nurse Station
• Dietary Services

Sanitary facilities and other requirements

 Wards can be:-
• Intensive Care Wards (ICU)
• Intermediate Care Wards
• Isolation Wards

The medical department has within it the various clinical services. They are medicine,
surgery, gynecology, obstetrics, pediatrics, eye, ENT, dental, orthopedics, neurology,
cardiology, psychiatry, skin, V.D., plastic surgery, nuclear medicine, infectious
disease etc. medical superintendent is a doctor who has control over all medical
department.

Our approach, is based on

 Patient centricity
 State of the art emergency response
 Integrity, teamwork, ownership, and innovation

Visiting Consultants For

 Pulmonology
 Nephrology
 Neurology
 Orthopedic surgeon for joint replacement
 Oncology
Scope of services : In sourced Services

► Internal medicine
► General surgery
► Orthopedics
► Pediatrics
►Urology
► Cardiology
► Anesthesiology
► Dialysis
► Blood Storage
► Dietary Services
► SRL Laboratory
► Radiology
► Plastic surgery
► Psychiatry
► Oncology
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1.6 INTRODUCTION TO HEALTHCARE SUPPLY

CHAIN MANAGEMENT OF PARAS HOSPITALS

ABSTRACT

Healthcare supply chain management (SCM) is the process of planning, organizing,

and controlling the flow and storage of goods and services in the healthcare industry.
It encompasses all aspects of the supply chain, from sourcing and procurement to
distribution and logistics. The goal of healthcare SCM is to ensure that the right
products and services are available at the right time and place, while also minimizing
costs and maximizing quality.
Hospitals are a critical part of the healthcare supply chain. They rely on a wide range
of suppliers for everything from medical devices and pharmaceuticals to food and
linen. Hospitals also have a complex distribution network, with supplies often being
transported to different departments and locations within the hospital.
Effective healthcare SCM is essential for hospitals to provide high-quality care to
patients. When the supply chain is not working properly, it can lead to stockouts,
delays in care, and even patient safety risks.

Here are some of the key components of healthcare SCM in

hospitals:
 Sourcing and procurement: Hospitals must carefully select suppliers and
negotiate contracts to ensure that they are getting the best possible prices and
quality.
 Inventory management: Hospitals need to maintain adequate inventory levels
of all necessary supplies, while also avoiding overstocking, which can lead to
waste and spoilage.
 Distribution and logistics: Hospitals must have a system in place to efficiently
transport supplies to different departments and locations within the hospital.
 Return and disposal: Hospitals also need to have a process for returning or
disposing of expired or damaged supplies.

Hospitals are increasingly using technology to improve their SCM operations. For
example, many hospitals now use electronic procurement systems to streamline the
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ordering process. Hospitals are also using RFID tags and other tracking technologies
to track the movement of supplies throughout the hospital.

Effective healthcare SCM can help hospitals to:

 Reduce costs
 Improve quality of care
 Enhance patient safety
 Increase efficiency
 Improve customer satisfaction

By carefully managing their supply chains, hospitals can better ensure that they have
the resources they need to provide high-quality care to their patients.

Definition of healthcare supply chain management

Healthcare supply chain management (HSCM) is the process of planning, organizing,

and controlling the flow and storage of goods and services in the healthcare industry.
It encompasses all aspects of the supply chain, from sourcing and procurement to
distribution and logistics. The goal of HSCM is to ensure that the right products and
services are available at the right time and place, while also minimizing costs and
maximizing quality.
Healthcare SCM is a complex global system with built-in protections to ensure
that medications and other medical supplies are manufactured and delivered in a
timely fashion. It can help organizations reduce unnecessary spending on operational
costs, including materials and unproductive labor.
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Healthcare supply chain management involves the systematic monitoring and control
of the movement of medicines, medical products, and healthcare equipment. The
healthcare supply chain encompasses everything from the latest high-tech medical
devices and equipment to hospital linens and dressings. The main objectives of
healthcare supply chain management are to increase visibility and efficiency across
the supply chain and to improve supply chain agility and resilience. A smooth running
supply chain allows healthcare providers to focus on patient care rather than wasting
time chasing down supplies of critical products and equipment.
The healthcare positions charged with keeping the organization’s supply chain
running smoothly play key strategic and leadership roles. The supply chain function
oversees most of a health system’s external spend, which accounts for up to 40
percent of total costs. Fragmentation, complexity, and disruption are three of the most
common healthcare supply chain management challenges.
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Scope of healthcare supply chain management

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Role of Supply Chain Management in healthcare sector

Many hospitals and physician practices have adopted a cost-cutting strategy,

especially as payers begin to link claims payment amounts to quality and cost
performance. Many firms have focused on the billing and services segment of the
revenue cycle to reduce costs, while others have begun to explore healthcare supply
chain management.
The supply chain management ensures that medicine/products are available at the
correct time, eliminating inventory waste, maximizing patient care, and reducing
human error/medication errors in all departments.

The significance of efficient supply chain management in healthcare

Healthcare supply chain management is a collection of processes, teams, and the

transportation of medicines, medical tools, and other products required by healthcare
professionals to execute their jobs.
Another goal of supply chain management in the healthcare industry is to identify
departmental weaknesses and provide prevention solutions. It tries to identify weak
areas to attain desired health outcomes and to improve global health investments.
When companies use digital tools and technology to manage healthcare supply chains,
they use actionable insights from multi-source data to alter and enhance supply chain
structures and operations continuously.

Benefits of supply chain management in healthcare:

Followings are some of the benefits of supply chain management in healthcare.

 Reduce operational costs: Medical producers rely on supply chain

managers to design networks that match customer objectives at the lowest
possible overall cost. Efficient logistics enable medical enterprises to compete
more effectively in the marketplace.
 Healthcare organizations are occasionally overcharged due to pricing
fluctuations and errors made when deliveries are delayed, adding to
unanticipated shortages and insufficient inventory controls.
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 Better processes: Some of the biggest problems in healthcare logistics are

keeping devices working and clean, getting rid of waste, storing and keeping
track of inventory, and shipping. When faced with issues such as a lack of
suitable storage space, rising labor prices, and typical tedious techniques, it is
the greatest alternative solution with solid logistics and supply chain
management.

 Help in automation: Supply chain software simplifies and automates

typical manual procedures carried out inside healthcare organizations with the
simple goal of enhancing the supply chain process. One of the numerous
benefits of software automation is its capacity to streamline inventory,
decrease waste, enable quick, data-driven choices, and save labor, supply, and
operational costs.
 For these reasons, enlisting the assistance of supply chain software
development organizations is becoming increasingly important.

 Gives a competitive advantage: Digitizing the supply chain makes it

possible for healthcare providers to get the exact product to the patient at the
right time and a low cost.
 Healthcare providers will be better placed to take benefit of technological
developments in the data flow, analytics, provider-patient interaction, asset
monitoring, and regulatory requirements by establishing a digital supply chain,
which also implies that the future of healthcare is digital.

 Improve the three C’s: Supply chain management focuses on enhancing

the three Cs: communication, collaboration, and coordination between
vendors, suppliers, transportation firms, and shipping organizations.
 Supply chain management employs a centralized distribution approach,
ensuring reliability for end users and providing correct output results.

 Increased transparency: Logistics is an important component of supply

chain management, with duties such as developing precise systems to plan and
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coordinate the complex movement of goods by delivering timely, safe, and

dependable shipments.
 Day-to-day logistics services vary depending on the business but often include
order processing, warehousing, and, last but not least, shipping.
 In addition to these items, logisticians provide data summaries to supply chain
partners to improve the visibility of commodities as they transit from point A
to point B. Logistics partners should improve transparency by coordinating
live tracking updates and establishing open communication channels to
increase customer service.

 Aids in demand forecasting: They may use healthcare supply chain

analytics to estimate demand correctly, improve stock planning and
management, and respond more quickly to changing market conditions by
combining supply chain and clinical data.
 Digital supply chain management technologies can assist raise productivity
and reducing time to market by fostering improved communication and
cooperation throughout the healthcare supply chain.
 They help to develop a healthcare value chain that can respond directly to and
recover from the difficulties of future pandemics and other public health
catastrophes by enhancing confidence and openness across the supply
network.

SCM in healthcare – best practices:

The best practices listed below, with examples, can help anyone prevent mistakes and
make the right choices:

 The advancement of technology: Organizations worldwide have been

able to adjust their services with cutting-edge technology, solutions, and
resources. Globally, supply chain management has grown in popularity as
firms integrate their essential business activities from beginning to end.
 For example, E-procurement and sophisticated supply chain planning systems
have been released as advanced software and solutions. These software
solutions have many applications in the healthcare supply chain management
 25

system. They can be utilized at numerous stages of the supply chain

management process, including procurement, manufacturing, transportation,
and storage.

 Adopting cloud-based solutions: Cloud-based systems have several

advantages, including reducing capital and running costs. The system requires
no hardware or IT infrastructure, allowing businesses to optimize supply chain
operations while avoiding capital expenses.
 Furthermore, these solutions aid in consolidating various systems, such as
warehouse management systems and transportation cost management, which
are crucial for supply chain operations. Cloud technology assists healthcare
businesses in coordinating and consolidating information with particular
solutions to avoid miscommunications and lost savings.
 Cloud computing also offers benefits to Small and Medium-sized Enterprises
(SMEs) and on-premise IT systems, such as cost-effectiveness and the ability
to minimize the total cost of ownership through pay-per-use. As a result of the
benefits associated with this technology, healthcare systems worldwide have
begun to incorporate cloud-based solutions in their supply chain operations.

 Inventory management: You must ensure that your materials department

orders the correct volume of supplies to match the volume used by your
personnel. There shouldn’t be surplus material ordered based on someone’s
gut instinct, and all of this occurs without risking the safety of your patients.
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Procurement and Vendor Management:

 Procurement involves sourcing and acquiring medical supplies, equipment,

and pharmaceuticals from vendors.
 Hospitals must establish effective vendor management strategies to ensure
quality and timely delivery of products.
 Negotiating favorable contracts, monitoring vendor performance, and
maintaining strong relationships are key aspects of procurement.

Inventory Management and Control

 Efficient inventory management is critical to prevent stock outs and

overstocking, which can lead to disruptions in patient care and increased costs.
 Hospitals should implement inventory control systems, such as just-in-time
(JIT) or materials requirement planning (MRP), to optimize stock levels.
 Regular monitoring, accurate forecasting, and proper storage conditions are
necessary for effective inventory management.
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Distribution and Logistics

 The distribution and logistics phase involves the timely delivery of supplies
and equipment to different hospital departments.
 Hospitals should streamline distribution processes to minimize delays and
ensure products reach the right place at the right time.
 Utilizing advanced technologies like barcode scanning and RFID can enhance
traceability and improve overall logistics efficiency.

Demand Forecasting and Planning

 Accurate demand forecasting is essential for hospitals to efficiently manage

their supply chain.
 Historical data analysis, collaboration with clinical staff, and market trends
analysis can aid in developing reliable demand forecasts.
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 Effective planning based on demand forecasts allows hospitals to optimize

inventory levels and minimize the risk of stock outs or wastage.

Risk Management and Mitigation

 Healthcare supply chain management involves addressing various risks, such

as product recalls, supplier disruptions, and natural disasters.
 Hospitals should develop robust risk management strategies, including
contingency plans and alternative sourcing options.
 Regular risk assessments and monitoring can help identify potential
vulnerabilities and mitigate supply chain disruptions.
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Technology and Automation

 Leveraging technology and automation can significantly improve healthcare

supply chain management in hospitals.
 Implementing an integrated supply chain management system allows for real-
time visibility, accurate data analysis, and streamlined processes.
 Technologies like artificial intelligence, robotics, and block chain can enhance
transparency, traceability, and efficiency in supply chain operations.

Collaboration and Communication

 Effective collaboration and communication between different stakeholders,

such as clinicians, supply chain managers, and vendors, is crucial.
 Regular meetings, clear communication channels, and shared goals facilitate
efficient supply chain management.
 Collaboration can lead to better inventory planning, reduced costs, and
improved patient outcomes.
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8 Challenges The Healthcare Supply Chain Is Facing:

1. Overnight Shipping
2. Hidden Costs
3. Drug Shortages
4. Data Shortage
5. Lack Of Integrations
6. Weak Charge Capture
7. Physician Preferences
8. Poor Workflow Design

1.7 Purpose & Objective of Healthcare Supply Chain Management of

Paras Hospitals:
Its goal is to increase visibility and efficiency across and improve the agility and
responsiveness of healthcare supply chains. It is fundamental to ensuring that patients
and healthcare providers get the medications and treatments they need when they need
them.

The supply chain management ensures that medicine/products are available at the
correct time, eliminating inventory waste, maximizing patient care, and reducing
human error/medication errors in all departments.
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CHAPTER 2 : LITERATURE REVIEW

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2. REVIEW OF LITERATURE

2.1 Hospital Supply Chain Management (HSCM)

According to Kazemzadeh et al. (2012) “Hospital Supply Chain Management is asset

of approaches to efficiently integrate suppliers or vendors, transport, hospital services
(including outpatient, emergency, in-patient, laboratory, radiology, stores and
purchase, food, laundry and medicines /equipment) to achieve Total Quality
Management (TQM) in healthcare services by optimum utilization ofre sources”
(Kazemzadeh et al., 2012).Hassan (2006) proposed the following definition: “Hospital
supply chain is the set of design activities, planning, procurement management,
manufacturing(goods and services), delivery and return management, from the
provider to the beneficiary (patients), taking into account all the trajectories of the
patients in the hospital without which there is no product flows (pharmaceutical).
These activities are driven by the information flow between the various partners in the
supply chain and lead to financial flows. The aim is to provide optimal service for the
quality and safety of patient care” (Hassan, 2006).With the increasing competition,
government regulations, rising costs and demand for higher quality of service, the
healthcare sector is under enormous pressure. Healthcare industry as a business
activity must strive for value addition across the supply chain to improve the supply
chain performance. It will help organizations to provide better service to its
stakeholders in this competitive world.
The supply chain management in healthcare industry faces quite a number of
challenges in the long run like cost and risk. That is why, attention to the supply chain
management in healthcare industry is required. The ultimate purpose is to ensure the
satisfaction of different stakeholders of the supply chain. Tamir, Ouzayd, and Chiheb
(2017) proposed a structured model for the global hospital supply chain. However, the
proposed structure has mainly focused on the pharmaceutical component. Here, the
main players are the manufacturers or suppliers under the pharmaceutical industry,
and they are responsible for supplying all the pharmaceutical products to the
pharmacy and the pharmacy plays a vital role in order to supply all these products to
the different services like hospitals, clinics etc. Later, the hospital management of
stock, supplies the pharmaceutical products to the patients. And in return, financial
 33

flow takes place from patients to the hospital management system and from the
hospital management system to the suppliers. (Figure 4)
In another research, Polater, Bektas, and Demirdogen (2014) have developed a health
care supply chain model in terms of buying products and services in the public health
sector in the context of Turkish health sector territory. The model has been
constructed in order to conceptualize the flow of products and services in terms of
satisfying those who serve the patients. Moreover, the main goal of the healthcare
supply chain is to deliver the product and service at the right time, in order to
accomplish the requirements of the healthcare service providers. In
Figure 5, it is clearly stated that, in the health care supply chain, key stakeholders

Figure 4. Structure of the global hospital supply chain (Tamir, Ouzayd, &
Chiheb, 2017).

Figure 5. Polater’s Turkish healthcare supply chain model (Polater, Bektas,

&Demirdogen2014).
 34

are Producers, Purchasers, and Providers. Therefore, after producing the medical
products, including, surgical supplies, medical devices, and pharmaceuticals,
producers distribute the product to the purchasers like distributors and wholesalers.
Likewise, purchasers hold inventories in order to facilities the delivery of products to
the providers. In healthcare, a provider represents those who are responsible or
serving patients. The study provided a description of the current situation of the
healthcare supply chain, and found potential solutions for increasing material
management practices in order to reduce inefficiencies and achieve cost savings.
However, the study was conducted in the context of the Turkish public and private
hospitals only. The main intention of this research is to get inside the hospital supply
chain and explore the excellence of the hospital supply chain in private hospitals of
Bangladesh. In addition, from different literature of previous models, we have
adopted a conceptual model for hospital supply chain in terms of private hospitals in
Bangladesh. However, initially, a typical supply chain model, has been considered
before reviewing all the previous healthcare supply chain models.

2.2 Conceptual Framework

Holistic View of Hospital Supply Chain Management
In our proposed conceptual model (Figure 6), we tried to conceptualize the
satisfaction of all stakeholders, external and internal of private hospitals through the
supply chain model. In our model we define how the hospital supply chain works,
identify the stakeholders under the hospital supply chain, and how the hospital supply
chain mechanism works in terms of satisfying the stakeholders. The development of
the conceptual model started with concentrating on a holistic view of hospital supply
chain management. In accordance with the basic service supply chain model, the
hospital supply chain management starts with the supplier. Suppliers can be
categorized into two groups for a hospital-human and non-human. Human suppliers
refer to the various individuals, doctors (reference of doctors), other hospitals who
supply patients to the hospitals. Non-human suppliers are the suppliers of medical
equipment, lab equipment, pharmaceuticals, different machines etc. to the hospitals.
The patients and all these equipment and pharmaceuticals supplied by both human
and non-human suppliers are considered as raw materials for hospitals.
 35

The raw materials are supplied to the service provider in any service-oriented
organization. In hospital supply chain management, hospitals act as the service
provider. Patients and other materials are normally supplied to hospitals for further
processing. As the process goes on, with proper materials and service, healthy patients
and medical students can be produced as customers of a hospital supply chain
management. The healthy patients and medical students being

Figure 6. Holistic view of hospital supply chain management.

part of the society can serve the society according to the need. So, the holistic view of
hospital supply chain management considers the society at large as the final consumer
who can get the ultimate service from the whole process. To make the process
effective and efficient, two most important variables work through the whole process,
they are, information and finance. Uninterrupted flow of information and finance at
each and every step of the process is a must to better serve the society in a timely
manner in this competitive market.

2.3 Conceptual Model of Integrated Private Hospital Supply Chain

Management (IPHSCM)
Concentrating on the holistic view of hospital supply chain management, a detailed
model has been developed and named integrated private hospital supply chain
management (IPHSCM) model. In this model, we have categorized the non-human
suppliers into three different segments including, Suppliers, Processing Centers and
Pharmacy & Medical Instrument stores. In terms of Service Providers, we have
included Hospital Administrations, Doctor & Medical Staff and Health Workers.
Lastly, the consumers are the Patients and Medical students.Suppliers: suppliers can
be considered as international and national suppliers.
 36

(Urquiage, Cossio, Suarez, Rodriguez, & Marrero, 2020) Stated that, international
suppliers are different countries across the world from where the national suppliers
are importing raw materials, equipment, or finished products and distribute to the
manufacturer, hospitals, and local pharmacy. In the hospital supply chain, suppliers
are human suppliers and non-human suppliers. Human suppliers are responsible to
supply patients to the hospitals. They refer patients to various doctors, hospitals. Non-
human suppliers supply medical equipment, lab equipment, pharmaceuticals, different
machines etc. to the hospitals. (Figure7)Processing Centers: Processing centers are
responsible for producing healthcare equipment including pharmaceuticals products
and medical kits such as, stretchers, anesthesia machines, patient monitors, sterilizers,
ECG Machines, surgical tables, surgical lights, surgical tools, and so on. We can state
this category as a direct non-human supplier in terms of the hospital supply chain.
However, there are some other categorized processing centers those are responsible or
producing other equipment such as office stationeries, physical evidence products etc.
Pharmacy & Medical Instruments Store: Pharmacy and medical instruments stores are
responsible for supplying drugs and medical instruments(Apron, Skeletons, Bones,
and Medical Books etc) for the patients and medical students’ care. Hospital
Administrations, Doctors and Health Workers: In the hospital supply chain, these
specific segments are known as service providers. They have collected all the raw
materials, equipment, physical evidence from the supplier’s segments, and by
utilizing all of these they are responsible for the patient’s and
 37

Figure 7. Integrated private hospital supply chain management (IPHSCM)

model.

medical students’ care. However, in our adopted conceptual (IPHSCM) model, this
segment will be considered as the internal stakeholders and will be responsible
directly for the customer’s satisfaction. Patients and Medical Students: Healthy
patients and medical students can be considered as the finished product. In our
conceptual model, healthy patients and medical students are playing a vital role in
terms of customer satisfaction. According to the IPHSCM model, all the internal and
external stakeholders of a hospital supply chain and the service providers are directly
and indirectly responsible for the care of the patients. Therefore, if the end-users are
satisfied, they will ensure the financial flow between the end-users and the service
provider,and basedon the medical demand the service provider will make the financial
transit between manufacturer to the service providers and that is how the supply chain
works in the hospital industry.
 38

CHAPTER 3: RESEARCH METHODOLOGY

 39

3.1 INTRODUCTION TO THEORETICAL FRAMEWORK

The word research refers to finding the truth about something through a systematic
study.
Research may be done to: -

✓Gain familiarity with a phenomenon or to achieve new insights into it.

✓Portray accurately the characteristics of the particular individual, situation or a

group.

✓Determination the frequency with which phenomenon occurs or with which it is

associated with another.

✓Test a hypothesis of a casual relationship between variables

 This research is a descriptive study, based on primary and secondary data,

which consists of research design to provide the framework for data collection
and analysis.
 This study consists of hospital industry that would enable intensive; micro-
level analysis of data, as well as it is practical because a big sample is not
feasible.
 This is an appropriate study to investigate the research question at the core of
this study.
 While not representative of the whole healthcare sector, selecting the Paras
hospitals as this study provided valuable insights as well as a novel and in-
depth understanding of the industry supply chain.
 Due to the expected difficulty of getting access to hospital staff and the
detailed work required for this research, a small sample was selected using
simple random sampling method.
 Primary data was collected through questionnaire survey using a simple
attitude scale.
 A pre-ready set of questions with responses consisting of 5-pointLikert scale
was asked to the anonymized participants from the Paras hospitals.
 40

 Secondary data was collected through extensive literature review and analysis
of publications, journals, websites, public documents, etc. Statistical tool excel
will be used to analyze the data.

3.2 PROBLEM STATEMENT

A descriptive study in “HEALTHCARE SUPPLY CHAIN MANAGEMENT OF

PARAS HOSPITALS”to study “The effectiveness of Supply Chain Process of Paras
Hospitals.”

3.3 Research Design

A Research Design is reflected as the agenda or plan for a study that guides as well as
helps the data collection and examination of data. The study here follows the
Descriptive Research Design which can be described below:

Sample Size
The study sample constitutes 50 respondents.
Sample Technique:
Convenience sampling technique
Sampling Design
The sampling design adopted is probability sampling in which stratified random
sampling is used.
Research Instrument
Structured questionnaire which contains of multiple choice questions is used to get
data. Illus. Questionnaire is the data gathering instrument used in the study. All the
questions in the survey are prepared in such a way that provokes all the appropriate
evidence that is needed for the study.
Measurement & Scaling
In this research, All the measurement constructs were estimated through respondent'
perceptual evaluation on a five-point Like rt scale, which was anchored by the end
points of "strongly disagree" (1) to "strongly agree" (5).
 41

Statistical Tools
The statistical tools used for analyzing the data collected are simple Percentage
method and Chart.
The data for the research has been collected using questionnaire. The Questionnaire
was distributed randomly to a sample of 50 anonymized participants and 50
anonymized participants have responded to the researcher.
The study was conducted by:
• To study the effectiveness of supply chain process of Paras Hospitals
• By analysing the data using appropriate statistical methods
• Study of currently available national and international literature on
thesubject

3.4 METHOD OF THE DATA COLLECTION

The source of information is generally classified as primary and secondary.
Primary Data: Primary data refers to information that is generated to meet the
specific requirement of the investigation at hand. The primary data will be collected
through the questionnaire from the anonymized participants of Paras hospitals.

Secondary Data: Secondary data is information that is collected for the purpose other
than to solve the specific problem under investigation. The secondary sources of data
collection were information obtained from books, magazines, websites and articles on
the topic etc. In the study, the researcher would use the secondary data to supplement
the primary data.

3.5 LIMITATIONS
 The employees were less coordinative.
 Certain data have not been recorded properly.
 Lack of experience of Researcher.
 42

3.6 Root Cause Analysis (RCA)

Root Cause Analysis (RCA) is a method or methodology used to investigate an
incident in order to assist in the identification of health system failures that may not
be immediately apparent at initial review. The purpose of an RCA is to identify
system issues that contributed to or resulted in the incident occurring and to provide
recommendations on actions to be taken to prevent or minimise a recurrence of a
similar incident. It is interdisciplinary in nature and uses a structured process which
endeavours to answer three questions:
 What happened?
 Why did it happen?
 How can it be prevented from occurring again?
An RCA is not used to apportion blame to staff; it is designed for learning and
improving the quality of the health system.
 43

CHAPTER4: DATA ANALYSIS AND INTERPRETATION

 44

Data Analysis

1. The supply chain process is efficient and minimizes delays.

48% respondents agreed with the supply chain process is efficient and minimizes
delays.

2.The supply chain process effectively meets the hospital's needs and demands.

62% respondents agreed with supply chain process effectively meets the hospital’s
needs and demands.

3.The communication and collaboration between different departments involved

in the supply chain process are effective.
 45

56% respondents agreed the communication and collaboration between different

departments involved in the supply chain process are effective, while 20% strongly
agreed with this.

4. The supply chain64% respondents agreed the supply chain process helps in

controlling costs and reducing wastage, while 18% strongly agreed with this.
process helps in controlling costs and reducing wastage.

5. Paras Hospitals maintains good relationships with its vendors and suppliers.

58% respondents agreed paras Hospitals maintains good relationships with its vendors
and suppliers.
 46

6. Paras Hospitals receives timely and accurate information from vendors and
suppliers.

64% respondents agreed Paras Hospitals receives timely and accurate information
from vendors and suppliers.

7. Paras Hospitals effectively utilizes technology and automation to improve the

supply chain process.

64% respondents agreed Paras Hospitals effectively utilizes technology and

automation to improve the supply chain process.
 47

8. The hospital's information systems support the supply chain process well.

70% respondents agreed the hospital's information systems support the supply chain
process well.

9. Paras Hospitals actively seeks feedback from staff to enhance the supply chain
process.

70% respondents agreed Paras Hospitals actively seeks feedback from staff to
enhance the supply chain process.
 48

10. Staff suggestions and concerns are addressed promptly.

62% respondents agreed Staff suggestions and concerns are addressed promptly,
while 18% people gave neutral response on it as well as 18% strongly agree with this.

By using of IBM – SPSS

Reliability Statistics:

Reliability Statistics

Cronbach's Alpha N of Items

.879 10

There is total 10 items of the variable and Cronbach’s alpha value is 0.836 which is
quite good. If Cronbach's alpha value is more than 0.7 it considers as acceptable.
Which means all questions are reliable.

Scale Statistics

Mean Variance Std. Deviation N of Items

38.4400 32.782 5.72556 10

This scale statistics table shows the mean value, standard deviation and number of
total items of the questionnaire.
 49

Item-Total Statistics
Corrected Item- Cronbach's
Scale Mean if Scale Variance
Total Alpha if Item
Item Deleted if Item Deleted
Correlation Deleted
The supply chain process is
efficient and minimizes 34.7000 23.806 .754 .856
delays.
The supply chain process
effectively meets the
34.5400 24.702 .803 .851
hospital's needs and
demands.
The communication and
collaboration between
different departments 34.6000 25.592 .689 .861
involved in the supply
chain process are effective.
The supply chain process
helps in controlling costs 34.5200 26.377 .697 .861
and reducing wastage.
Paras Hospitals maintains
good relationships with its 34.6800 25.855 .721 .859
vendors and suppliers.
Paras Hospitals receives
timely and accurate
34.6200 27.383 .619 .867
information from vendors
and suppliers.
Paras Hospitals effectively
utilizes technology and
34.6800 26.426 .727 .859
automation to improve the
supply chain process.
The hospital's information
systems support the supply 34.6400 27.174 .612 .867
chain process well.
Paras Hospitals actively
seeks feedback from staff to
34.5000 29.398 .394 .881
enhance the supply chain
process.
Staff suggestions and
concerns are addressed 34.4800 32.377 -.006 .903
promptly.
 50

Above Item-total Statistics table shows that if I delete any item from the total items,
the Cronbach’s value will be change by that value which is mentioned in the above
table.
For example, If I delete “The supply chain process is efficient and minimizes
delays.”then Cronbach’s alpha will be change by from 0.879 to 0.856.

Correlation Analysis:

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

The correlation coefficient can range from -1 to +1, with -1 indicating a perfect
negative correlation, +1 indicating a perfect positive correlation, and 0 indicating no
correlation at all.
After applying correlation, we get the value 0.773 which means there is very high
positive correlation between “The supply chain process is efficient and minimizes
 51

delays” and “The supply chain process effectively meets the hospital's needs and
demands”.

Descriptive Analysis:

Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
The supply chain process
is efficient and minimizes 50 1.00 5.00 3.7400 1.06541
delays.
The supply chain process
effectively meets the
50 1.00 5.00 3.9000 .90914
hospital's needs and
demands.
The communication and
collaboration between
different departments 50 1.00 5.00 3.8400 .91160
involved in the supply
chain process are effective.
The supply chain process
helps in controlling costs 50 1.00 5.00 3.9200 .80407
and reducing wastage.
Paras Hospitals maintains
good relationships with its 50 1.00 5.00 3.7600 .84660
vendors and suppliers.
Paras Hospitals receives
timely and accurate
50 1.00 5.00 3.8200 .74751
information from vendors
and suppliers.
Paras Hospitals effectively
utilizes technology and
50 1.00 5.00 3.7600 .77090
automation to improve the
supply chain process.
The hospital's information
systems support the supply 50 1.00 5.00 3.8000 .78246
chain process well.
Paras Hospitals actively
seeks feedback from staff
50 1.00 5.00 3.9400 .68243
to enhance the supply
chain process.
Staff suggestions and
concerns are addressed 50 2.00 5.00 3.9600 .66884
promptly.
 52

Valid N (listwise) 50

Descriptive analysis is used to find the mean value, standard deviation and many more
of every individual items. In this table mean value of each item is more than 3 its
means it is agreed side according Likert scale.

N shows the total number of respondents which is 50. The “Minimum Column”
shows the smallest value of the Likert scale that is 1, likewise “Maximum Column”
shows the largest value of the Likert scale that is 5.
 53

FINDINGS, SUGGESTIONS & CONCLUSION

 54

5. FINDINGS, SUGGESTIONS & CONCLUSION

5.1 FINDINGS

1. 48% respondents agreed with the supply chain process is efficient and
minimizes delays.
2. 62% respondents agreed with supply chain process effectively meets the
hospital’s needs and demands.
3. 56% respondents agreed the communication and collaboration between
different departments involved in the supply chain process are effective, while
20% strongly agreed with this.
4. 64% respondents agreed the supply chain process helps in controlling costs
and reducing wastage, while 18% strongly agreed with this process helps in
controlling costs and reducing wastage.
5. 58% respondents agreed Paras Hospitals maintains good relationships with its
vendors and suppliers.
6. 64% respondents agreed Paras Hospitals receives timely and accurate
information from vendors and suppliers.
7. 64% respondents agreed Paras Hospitals effectively utilizes technology and
automation to improve the supply chain process.
8. 70% respondents agreed the hospital's information systems support the supply
chain process well.
9. 70% respondents agreed Paras Hospitals actively seeks feedback from staff to
enhance the supply chain process.
10. 62% respondents agreed Staff suggestions and concerns are addressed
promptly, while 18% people gave neutral response on it as well as 18%
strongly agree with this.
 55

5.2 SUGGESTIONS
 Adopt a robust inventory management system to track supplies, reduce
overstocking, and automate reordering processes.
 Use RFID tags or barcodes to enhance inventory visibility and
accuracy, making it easier to track items through the supply chain.
 Foster stronger relationships with key suppliers to negotiate better
terms, ensure timely deliveries, and potentially secure discounts.
 Collaborate with suppliers to allow them to manage inventory levels
based on real-time data, reducing the hospital's inventory management
burden. Provide ongoing training to staff involved in supply chain
management to ensure they are updated on best practices and new
technologies.
 Implement changes gradually and involve staff in the process to ease
transition and ensure adoption. Define and monitor KPIs regularly to
track the performance of the supply chain and identify areas for
improvement.
 Establish mechanisms to gather feedback from various stakeholders to
continuously improve the supply chain processes.

5.3 CONCLUSION

Efficiency of supply chains is not only a task for which a Purchase department is
responsible as it is a strategic decision taken by the management as regards the
method of future company's operation. Decision-makers must always remember that a
supply chain must first be planned in the most effective manner taking into account
numerous aspects influencing its operation. Correctly planned and fulfilled logistics
tasks may result in improving performance of a company as well as the whole supply
chain. Disregarding the importance of the designing and strategic analysis processes
will surely make a supply chain less effective.
However we concluded that it improves overall experience of Patient care and Patient
Satisfaction in a Hospitals and taking the healthcare services at right time at right
Place.
 56

BIBLIOGRAPHY & ANNEXURE

 57

6.1 BIBLIOGRAPHY

 The impact of supply chain management practices on hospital

performance" by Vonderembse, M. A., & Uppal, M. (2006) - This study
explores the relationship between supply chain management practices and
hospital performance.
 Improving healthcare supply chain performance: A systematic review" by
Zailani, S., et al. (2015) - This systematic review examines various strategies
and practices to enhance healthcare supply chain performance.
 Supply chain management in healthcare: A literature review" by Wu, D.,
& Zhang, M. (2016) - This paper provides an overview of supply chain
management practices specifically in the healthcare sector.
 The impact of supply chain management practices on hospital costs and
patient risk" by Cannon, B., & Hogg, G. (2016) - This study investigates how
supply chain management practices affect hospital costs and patient risks.
 Supply chain management in healthcare: An introduction" by Hendricks,
K. B., & Singhal, V. R. (2012) - This article offers an introduction to supply
chain management in the context of healthcare organizations.
 58

ANNEXURE

6.2 QUESTIONNAIRE
I am a student of MBA. As per my curriculum, I am undergoing a research project.
For this, I need your kind co-operation. I assure you that the findings will be used for
academic purpose only.

Name*

1. The supply chain process is efficient and minimizes delays?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

2. The supply chain process effectively meets the hospital's needs and
demands?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

3. The communication and collaboration between different departments

involved in the supply chain process are effective?

a) Strongly agree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree
 59

4. The supply chain process helps in controlling costs and reducing wastage?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

5. Paras Hospitals maintains good relationships with its vendors and

suppliers?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

6. Paras Hospitals receives timely and accurate information from vendors

and suppliers?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

7. Paras Hospitals effectively utilizes technology and automation to improve

the supply chain process?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree
 60

8. The hospital's information systems support the supply chain process well?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

9. Paras Hospitals actively seeks feedback from staff to enhance the supply
chain process?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

10. Staff suggestions and concerns are addressed promptly?

a) Strongly disagree

b) Disagree

c) Neutral

d) Agree

e) Strongly agree

Any additional comments, suggestions, or concerns.

 61

6.3 REFERENCES

6.3.1 Websites:

https://www.researchgate.net/publication/336348863_Supply_Chain_Management_in
_Healthcare_A_Literature_Review

https://www.parashospitals.com/india/paras-hospitals-panchkula

https://scholar.google.com/

https://docs.google.com/forms/u/0/

https://www.linkedin.com/company/parashealth/

https://www.scirp.org/journal/paperinformation.aspx?paperid=117085

6.3.2 References:

Kothari, C.R. (2004) Research Methodology: Methods and Techniques. 2nd Edition,
New Age International Publishers, New Delhi.Burnson, F. (2016).7 Little-Known
Benefits of ERP Systems. Retrieved from Software Advice:
http://www.softwareadvice.com/resources/7-little-known-erp-benefits/.Graham, J. F.
(2009).Enterprise Resource Planning in Higher Education. 4-11.Gunnarsson, P. C.
(2014). Barriers to ERP System Use - Overcoming a Troublesome Post
Implementation Phase. 8-11.