Supply chain transparency is the practice of providing clear, accessible information about the different stages involved in the production and distribution of goods. The concept revolves around visibility in the supply chain and encouraging ethical processes, like those related to labor and the environment. In healthcare, the practice is important considering the sensitive nature of medical supplies and pharmaceuticals.
Its development has also led to the improvement of medical delivery systems that keep stakeholders aware of where medication is. A journal article published in Personal and Ubiquitous Computing notes, “It tracks the status of a batch of medicine from manufacturers to wholesalers, distributors, and retailers…This status tracking characteristic of a medical supply chain offers numerous benefits to both stakeholders and consumers.”
The level of transparency aids in treatment planning because medications that are not readily available can be replaced by physicians.
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The primary advantage of supply chain transparency in healthcare organizations is the improvement of inventory management which allows for the procurement and planning of supplies based on real-time data. It leads to reduced waste and minimized stockouts associated with overstocking or emergency procurements.
When accompanied by effective communication methods like HIPAA compliant email, it promotes a patient-centric approach where healthcare organizations tailor treatment to the needs of the patient and the reality of the medical supply chain.
Key components include manufacturers, distributors, pharmacies, hospitals, and health insurance providers, all of which play critical roles in moving medical products from production to patient care.
Distributors purchase medical products in bulk from manufacturers and maintain large inventories to ensure timely delivery to healthcare providers.
The FDA monitors medical device supply chains to prevent shortages and ensure compliance with safety standards. They maintain a Device Shortage List to inform stakeholders about current shortages.