Healthcare's Supply Chain

Healthcare’s Supply Chain
The healthcare supply chain is becoming more complex with the changing life cycles of and expanding portfolio of pharmaceuticals.  International supply chains must be carefully evaluated to respond to emerging markets and millions can be saved by planning accordingly.  Healthcare consulting firms have recognized trends to help healthcare organizations optimize supply chains.
Healthcare consulting has taken principles from multiple industries to address the logistical needs of healthcare firms. Manufacturing and retail principles have grown into models of operation excellence and healthcare consultants have bridged these principles to increase profitability and efficiencies.
Consultants often suggest better segmentation, increased supply chain scalability, globalized standards and improved collaboration.  The implementation by healthcare consulting firms is difficult but well worth the investment for firms looking to lower costs and expand globally.  Pharmaceutical firms can see an increase in profits from 9%-11% across the entire supply chain however medical supplies and devices can have profit increases up to 20%.  If your considering hiring a healthcare supply chain consulting company,
Healthcare supply chain consulting

Changing Business Landscape. What should be done about Emerging Markets

Management Consulting Company McKinsey, has recently published Urban world: The shifting global business landscape.  This latest publication states that research conducted at Mckinsey shows that 45% of the Fortune 500 companies with be in emerging economies by the year 2025.  Further into the article 3 main points are made to help effectively manage such a change.

1. Optimize sales networks
2. Understand how customers and competitors are evolving
3. Reconsider the headquarters configuration and the location of other core activities

Its true that there are many fast growing cities in emerging markets and over 6,000 companies of $1 billion plus revenues are in such economies however an additional 7,000 companies with such revenues would be needed in these markets to reach the 45% mark of Fortune 500 companies.  Certainly Optimizing your sales network is always a good idea and excellent operations always takes into account demand forecasts.  Management consultants and operations consultants should always advise clients to monitor customer trends and competitors.
Moving your headquarters however can be a very complicated process and many businesses might not have the correct implementation skills to take on such a move or the leadership. Starting a division and correctly allocating certain control to such a division could help smooth such a transition without taking on too much risk.  CEO’s need to recognize the potential for such a business landscape shift but need to carefully evaluate if taking action is best for the company.