Our very own Tom Redding was quoted in a recent article on Healthcare Purchasing News about how the ongoing pandemic is affecting group purchasing organizations and integrated delivery networks. He discusses how supply chains will take a more holistic approach to address issues in the future. Use the link below to read the whole article!
“A focal point for strategic sourcing, both on the IDN and GPO side, should be to see where they can shorten their supply chains,” he indicated. “That translates to business with more local manufacturers, and possibly investing in vertical integration for better control over certain goods. The fewer the links, the less opportunity for kinks in the chain.”
It may be time to rethink what’s been done before, not necessarily because it backfired during a crisis but that it may not have gone far enough, according to Tom Redding, Senior Managing Director, Healthcare Services, St. Onge Co.
“Over the last decade, there has been a significant push across the industry to streamline the sourcing/contracting through the GPO, which has allowed the health systems to run ‘lean’ on internal teams while reaping the financial benefits,” he observed. “I believe organizations will start to challenge their existing thinking on the use of a GPO and further develop the internal capability to ensure the organization is able to quickly adapt to backorders and supply chain disruptions. I anticipate greater pressure from the GPOs and IDNs on the manufacturers to provide better inventory visibility to ensure the organization has the appropriate amount of supply chain risk. GPOs and IDNs will need to think beyond the ‘price only’ and understand the complete supply chain picture to assess their risk.”
Click here to read the full article on the Healthcare Purchasing News site!
