School of Management, IT and Governance

Demand and Logistics Management

SCMA7CO
Strategic Supply Chain Management and Project Management

UKZN INSPIRING GREATNESS

 Introduction
• As marketplaces are increasingly competitive and the rate
of innovation continues to increase there is a need to
manage growing complexity as companies widen their
influence by looking at international supply chain
management to gain a competitive advantage.

UKZN INSPIRING GREATNESS

 Introduction

• Organizations have to recognize, respond to, and satisfy the

requirements of their customers if they intend to stay in
business and benefit from future growth through repeat
business
• For these organizations, both products and services have
increased in their complexity and value, and as such, pursuing
new business opportunities often involve accepting a greater
level of risk.

UKZN INSPIRING GREATNESS

 Health Care Supply Chain Management & Logistics

• Health care is a specialized genre of logistics and supply chain

management.

• Ensuring customer-demanded goods and services are available

to support daily health care operations is a focal point for a
wide variety of both clinical and nonclinical customers
(Schneller and Smeltzer 2006).

UKZN INSPIRING GREATNESS

 Health Care Supply Chain Management

• Many products related to health care involve short shelf lives

• Where if an item is not used by a certain time, the product is
no longer any good or cannot be safely used in patient care.
• Examples of short shelf life products include blood, some
pharmaceutical products, medicinal solutions, and laboratory
reagents

UKZN INSPIRING GREATNESS

 Health Care Supply Chain Management

• Another reason for health care supply chain specialization

involves the potential for stock-outs and supply chain
shortages, creating significant negative consequences for end-
users.
• Disruptions in a patient’s treatment regimen, resulting from
supply chain shortfalls, can lead to an exacerbation of injury or
even death in some instances

UKZN INSPIRING GREATNESS

 Health Care Supply Chain Management
Health care logistics professionals, like in other supply chains,
are continually seeking opportunities in attaining
value chain enhancements.
These include collecting better data, improving visibility,
reducing inventory requirements ( Covid Vaccine refrigeration)
and streamlining processes to create more efficiency in health
care supply chain operations.
UKZN INSPIRING GREATNESS
Health Care Supply Chain Management & Logistics
• Logistics operations go far beyond the hospital storeroom and
involve a wide
• range of responsibilities that tend to be somewhat confusing to
many health care practitioners.
• Logistics and supply chain management are complex issues
that yield inherent
• complexities along with the nature of the service provided,
technical efficiency,
• and effectiveness.

UKZN INSPIRING GREATNESS

Health Care Supply Chain Management & Logistics
• Logistics operations go far beyond the hospital storeroom and
involve a wide range of responsibilities that tend to be
somewhat confusing to many health care practitioners.
• Logistics and supply chain management are complex issues
that yield inherent complexities along with the nature of the
service provided, technical efficiency, and effectiveness.

UKZN INSPIRING GREATNESS

Health Care Supply Chain Management & Logistics
• Managing large numbers of specific, specialized medical line
items becomes a challenge due to operational tempo, dynamic
health-related conditions, and the needs of a multifaceted
customer base involved in various aspects of patient care.
• While many health care organizations do attempt to employ
this type of supply chain management strategy, enhancing
operations through a performance-based
• approach in a contingency theatre of operations

UKZN INSPIRING GREATNESS

Health Care Supply Chain Management & Logistics
• Health care logistics management in contingency-based
operations tends to be reactionary and based on erratic data
rather than on deliberate, synchronized future demand
forecasting.
• A contingency-based scenario involves any unexpected crisis
event that creates a disruption in a supply chain, creates a
significant threat to a population’s safety and security, and can
trigger an immediate requirement for an irregular

UKZN INSPIRING GREATNESS