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Industry

THE HEALTHCARE
SUPPLY CHAIN.

Reference

Healthcare supply chains are built around traceability and substitutability. A hospital needs to know exactly what it received and needs an alternative when it does not arrive, and both requirements shape how suppliers are chosen.

What to know
Unique device identification
Devices carry standardized identifiers that follow them from manufacture to use, so a specific batch can be located across an entire health system. Supplying without correct identification is not a labeling problem — it blocks the sale.
Sterility and cold chain
Where a product is sterile or temperature-controlled, the record of its conditions is part of the product. An unbroken chain that cannot be evidenced is treated as a broken one.
Contracted pricing and rebates
Prices are set by GPO or system contracts and reconciled through rebates and chargebacks afterwards. The invoice price and the realized price are routinely different numbers, and tracking the gap is its own discipline.
Substitution is planned, not improvised
Institutions maintain approved alternatives precisely so a shortage does not become a clinical problem. Being the approved alternative is a real commercial position and it is won before the shortage.
Where to go next
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