Supply Chain Creativity During COVID-19

Supply Chain Creativity During COVID-19

Supply Chain Creativity During COVID-19

Just as we typically don’t think about how groceries get to our grocery store, we probably don’t wonder how medical supplies get to our hospital room or doctor’s office. But for those of us who work in hospital supply chain management, we know a lot of negotiating, storage and coordination goes into this at the best of times.

As the world confronts COVID-19, issues regarding medical supply chains have been thrust into the spotlight. When a previously nonexistent health threat spreads across the globe in a matter of weeks, demand for essential medical equipment suddenly outstrips supply. Fraudulent vendors become a higher risk. Established vendor partnerships are strained. In fact, this virus originated near a major personal protective equipment (PPE) manufacturing area in China. This greatly reduced supply at a time when the world needed it most.

While most of UW Health has thus far not encountered a surge of COVID-19 patients, we have still faced unprecedented challenges since the onset of the pandemic. To overcome these current and potential shortages, serious creativity and collaboration need to be front and center.

With so much still unknown, a best-case scenario might be a new normal of carefully caring for COVID-19 patients in steady conjuncture with the many other patients who need our support. This creates a significant and prolonged increased need for PPE, posing tremendous challenges as the supply chain is under immense stress.

Using Public and Private Partnerships

As an academic medical center where our physicians are also faculty of the University of Wisconsin School of Medicine and Public Health, UW Health often works methodically. Now that time is of the essence, the health system and university have been collaborating closely and swiftly, and UW Health is benefiting greatly from its close partnership and proximity to the institution’s educators and students.

Making Unusable PPE Usable

In mid-March, UW Health received 1,250 hoods from the strategic national stockpile. These were meant to be used with our PAPRs, the respiratory protection systems that protect healthcare professionals when bodily fluids can be aerosolized, such as during intubation. Powered by a blower strapped around the wearer’s waist and connected by a hose to a hood covering the head, PAPRs offer the highest form of protection to a medical professional’s head, face and respiratory system during high-risk procedures.

Keeping Hand Sanitizer Flowing

As COVID-19 rapidly spread, the supply of hand sanitizer dwindled everywhere. We knew we would be hard-pressed to safely care for patients without it, so again we relied on the ingenuity and expertise of partners, this time at the UW-Madison School of Pharmacy’s Zeeh Pharmaceutical Experiment, which typically focuses on supporting drug development.

Reuse and Recycle

Sometimes supply chain challenges are not about getting or making more, but making existing supplies go further. We began sterilizing used N-95 respirators to reuse if we experienced a significant surge of patients. We have not yet needed to use them, but preparing for the worst is vital.

UW Health goes through thousands of surgical, isolation and patient gowns each week. Sourcing new, disposable gowns would be nearly impossible in the current climate. Fortunately, we are part of a laundry cooperative that not only launders all linens but sterilizes surgical and isolation gowns. Partnerships like this put a health system in a better position to control the supply chain than if it were a contracted client to a third-party laundry vendor or disposable gown supplier.

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3 Ways to Better Manage Supply Chain Risk in 2019

Businessman's hand stopping falling wooden dominoes effect from continuous toppled or risk

3 Ways to Better Manage Supply Chain Risk in 2019

Managing a supply chain in 2019 incurs a certain amount of risk by necessity, but having a plan in place to manage risks, respond to incidents, and deal with disruptions can put your business ahead of competitors.

In order to best address these supply chain risks, they can be categorized by implications, or by sources.

  1. Qualitative: addresses the reliability and accuracy of materials
  2. Quantitative: addresses the availability of material or overstocks
  3. Atomistic: impacts only constrained links within it
  4. Holistic: requires businesses to assess entire supply chains

Based on a joint report from Cranfield School of Management and Dun & Bradstreet, supply chain risks can also be categorized in the following segments:

  1. Supplier criticality
  2. Supplier financial risk
  3. Global sourcing risk
  4. Foreign exchange risk

By looking at each of these risk categories individually, businesses gain a deeper understanding of how to best prioritize their attention. Supply chain risk management trends for 2019 offer further insight and solutions to businesses who desire a more transparent, risk-aware supply chain.

Keep Tabs on Your Current Suppliers

Visibility and transparency throughout the supply chain are critical as consumer priorities shift toward socially and environmentally-conscious ethics.

Outstanding performers are 250% more likely to have a fully visible and transparent procurement system compared to their peers, according to Deloitte’s Global CPO Survey of 2018. Despite this, 65% of procurement leaders have little or no visibility in their supply chains, according to the Zycus whitepaper “Ensuring Efficient Supplier Risk Management with Supply Chain Transparency.

Pick Your Battles with Suppliers

Arguments with suppliers can cause major disruptions to production. While disputes are bound to happen, minimizing risks by hiring effective communicators who can arrive at symbiotic compromises will go a long way toward your company’s bottom line as well as maintaining fruitful supplier relations.

It’s also important to pick your battles with suppliers; ultimately if there is a continued conflict with a supplier, it may be time to find a new one.

Utilize Technology To Its Fullest

Modern technology can make a big impact in supply chain risk management if used correctly. 2019 trends include artificial intelligencethe Internet of Things (IoT), and blockchain as helpful resources to supplement your supply chain management.

Read more 3 Ways to Better Manage Supply Chain Risk in 2019

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