Strategic planning and system implementation - Coursework Example

Supply chain management in health care al Affiliation Introduction Supply chain management refers to the active control and control of the goods and services within an organization. This is done so that the objectives and functions of the involved entity are achieved in an effective manner. This paper, seeks to evaluate the roles of internal and external players involved in the successful supply chain management (SCM) in health care and their interaction. It explores how SCMs allow healthcare organizations to become more competitive while evaluating the role of e-commerce in SCM.

External playersManufacturers identify gaps and produce the needed goods or services. They achieve this in collaboration with warehouses where they can store their raw products. They also seek for raw material suppliers. In health care SCMs these include drug manufacturers and equipment manufacturers e.g. Bayer and St. Jude. Wholesalers and distributors buy goods/services from the manufacturer in bulk and sell them to end users e.g. health care facilities and retailers. They are also involved in the marketing and delivering of products.

Retailers are the link between customers and the suppliers. These include chemists, pharmacies and other health care retailers. They actively seek to know customer needs, document and respond to customer requests e.g. an order for bandages and syringes. Hence, there is flow of information, funds, goods and services along the entire chain.Insurance companies also play a key role by providing insurance cover for health care facilities and practitioners. Moreover, policy and regulations entities are involved in the regulation of standards in the health care sector hence becoming part of SCMs (Uzsoy, 2005).

Internal playersDoctors, nurses and other health care workers are tasked with the responsibility of providing information to the department of procurement and supplies. Lists of all needed tools and services are prepared and delivered to the procurements department which undertakes research and identifies potential suppliers having the needed services or goods. Comparison is undertaken based on quality, pricing and excellent service history. The findings are presented to the health care workers and finance department.

This ensures they can make informed decisions that are cost effective (Uzsoy, 2005). SCMs if utilized effectively add competitive edge to the health care facilities that employ them. They aid in reduction of redundancies hence reducing costs. In addition, they allow for better planning hence better service delivery to their customers. This translates to higher customer satisfaction and more business for the company. In addition, they allow for bulk purchases which are accompanied by higher discounts hence increased savings.

Johnson & Johnson and Kimberly-Clark are health care companies which were listed as being among the best top 25 supply chain companies according to Gartner’s list, 2014 (Aronow, Burkett, Niles & Romano, 2015).E-commerce which is the conduction of business over computer networks e.g. internet plays a key role in health care SCMs today. It has lessened the financial and time burden associated with market research. In addition, it also bridges the geographical gap hence one can transact business with people oversees.

Moreover, communication is now easier and faster. Finally, the intermediary system that initially existed is being overtaken by e-commerce hence reducing costs for health care companies (Nikakhtar & Jianzheng, 2012). ReferencesAronow, S., Burkett, M., Niles, K., & Romano, J. (2015). The Gartner Supply Chain Top 25 for 2015. Retrieved from https://www.gartner.com/doc/3052620?srcId=1-3132930191&pcp=gi_sr_sc25Uzsoy, R. (2005). Supply-chain management and health care delivery: pursuing a system-level understanding.

Building a Better Delivery System: A New Engineering/Health Care Partnership, 143.Nikakhtar, N., & Jianzheng, Y. (2012). Role of e-commerce in supply chain management to minimize costs. African Journal of Business Management, 6(17), 5671.