supplies

How Medical Practices Can Navigate Supply Chain Disruptions


December 15, 2021 For Dentists, For Doctors

The global supply chain is under strain, and the healthcare sector isn’t immune. Shortages of critical healthcare supplies can quickly become serious. We saw this at the beginning of the pandemic when PPE supplies were a major issue, and the issue is back in the news, in which shortages are touching just about every industry area.

Here’s what to know about the supply chain challenges – and how to plan around potential shortages.

Issues are Widespread

Currently, acute shortages are possible across all areas of the healthcare system. Providers are reporting shortages of items as diverse as crutches and wheelchairs, catheters, pill bottles, blood tubes, and inhalers. Raw materials, chips, and some drugs are also in short supply, and both domestic and international vendors are feeling the squeeze. Even when products are available, delays between ordering and receiving them can be significant – and costly. Shipping prices are at an all-time high, shipping container availability is low, and trucking services are experiencing significant pressure due to the rise in e-commerce. Not only are shipping delays an issue, but increased prices due to demand and higher shipping costs can pose a problem for healthcare providers’ bottom lines.

Planning Ahead is Vital

Some experts anticipate shortages to last another 12-24 months, so being proactive is essential. But with the right planning and a little flexibility, healthcare providers can minimize the impact of shortages. They can do this by:

  • Finessing their forecasting. Have a deep understanding of what supplies are being used at what rate and when new orders should be placed. Careful monitoring and reporting will pay dividends.
  • Being aware of turnaround times. Medical supplies that once took a month to source now can take three times that. Build these delays into your ordering by ordering early.
  • Diversifying suppliers. Don’t rely on a single provider to deliver all of your supplies. Manage risk by working with several trusted suppliers and having backups to fulfill orders if needed. Understand the strengths and weaknesses of suppliers, including the ability to scale up and down quickly or the issues associated with providing highly specialized equipment.
  • Broadening domestic partners. If your organization relies on global supplies, turn your focus to the domestic market and take the time to build valuable relationships with local, trusted partners who can help during a shortage.
  • Considering new pricing structures. Shortages often mean increased costs, so work with your providers to find ways to keep costs as low as possible. This may mean structuring your orders differently, ordering in bulk, or considering different shipping options.
  • Having a stockpile. Having enough supplies at hand to mitigate the short-term impact of a shortage is vital. A stockpile should be developed based on the importance, relative scarcity, and expiration date of crucial supplies and in tandem with a guaranteed supply agreement that might involve group partnerships.

Take Charge of Your Supply Chain

With the end of the year approaching, now is the perfect time to take stock of your equipment and supplies and create a plan to order that accounts for shortages and supplier issues. With 62% of healthcare employees believing that organizations aren’t doing enough to address and fortify against supply chain challenges, action is clearly needed.

At Gittleson Zuppas Medical Realty, we understand the unique challenges that medical providers face day to day. The supply chain issues you face are echoed in the world of medical real estate, our area of specialization. Like you, we’re working on planning ahead, identifying opportunities, and building valuable relationships so that our clients can easily find the right property for their clinic or organization – without delay. For more information about how we can help, get in touch.