The global healthcare supply chain has undergone a massive overhaul during the past three years. Healthcare organizations reported such issues as complicated sourcing of supplies and price surges. In 2023, these challenges carry through.
In March 2023, the Health Industry Distributors Association (HIDA) reported that 93% of healthcare providers say they are still experiencing product shortages. Not only have they become more widespread, but also more difficult to predict.
To tackle the long-lasting effect of the pandemic, the industry is increasingly turning to modern technologies, in particular, the Internet of Medical Things (IoT). Below, we explore in detail how medical IoT services help healthcare organizations overcome the fallout of COVID-19 and build more resilient supply chains.
Four ways IoT is transforming healthcare supply chains
#1. Enabling real-time monitoring of inventory and supplies
Forecasting inventory volumes, designing optimal storage strategies, tracking deliveries, managing recalls and expired products — managing inventory is not easy. In fact, 85% of workers engaged in healthcare inventory management say they have trouble keeping track of supplies. Also, 25% say they don’t always manage to keep an eye on products’ expiration or recall info.
With IoT, medical organizations can switch to more transparent inventory management. Relying on the data generated from RFID tags, beacons, or sensors (that can be placed anywhere: from drug packages to medical equipment to hospital beds), medical organizations can precisely track the inventory they have on hand and look into where each item is located.
Using temperature and humidity sensors, healthcare facilities can also monitor the condition of medical supplies. This is particularly important for vaccines that need to be stored at specific temperatures to stay effective.
#2. Sourcing data for predictive analytics
With IoT technology, healthcare organizations can collect vast amounts of data on inventory levels, usage rates, and other key metrics. This data can be analyzed using predictive analytics algorithms to forecast future demand and optimize inventory levels. For instance, hospitals can use IoT sensors to track the utilization of medical supplies, such as gloves or masks, and predict when they will need to reorder these items.
Another field where the combination of IoT and predictive analytics comes in handy is pinpointing secondary supply shortages. In contrast to primary supply shortages that occur when demand is growing for items that are related to disruptions directly, like ventilation-related products in the COVID times, secondary supply shortages are bound to disruptions indirectly and are harder to predict.
Gaining insight into the locations and conditions of items throughout the supply chain and analyzing this data against pandemic, transportation, labor, financial, and other factors helps dynamically adjust supply chain workflows to prevent major disruptions.
#3. Automating manual operations
In view of the healthcare sector facing a talent crisis with 92% of healthcare organizations reporting difficulties in hiring administrative staff, IoT could allow supply chains to rely less on human force.
One way that IoT consulting and development companies are automating healthcare supply chain workflows is by enabling automated inventory replenishments. By connecting devices and sensors to a cloud inventory management system, healthcare organizations can track inventory levels in real-time and automatically reorder supplies when inventory levels fall below a certain threshold.
IoT technology is also enabling automated maintenance for medical devices and equipment. By connecting devices to monitoring systems, healthcare organizations can automatically schedule maintenance and repairs when devices show signs of wear or malfunction. This reduces the risk of equipment downtime and ensures that devices are always functioning at their best.
Another exciting application of IoT technology in healthcare supply chain management is the use of autonomous vehicles for last-mile deliveries. Autonomous vehicles can be used to transport supplies and equipment from central warehouses to healthcare facilities, reducing the time and cost involved in managing logistics. This technology is still in its early stages, but several companies are already working on developing autonomous vehicles for healthcare logistics.
#4. Improving risk management and supply chain resiliency
The healthcare supply chains of today are reactive. IoT technology can support supply chain executives in strategic planning and allow taking a more proactive approach to managing supplies.
The use cases described above, including real-time inventory monitoring, shipment status tracking, and automation of supply chain workflows help identify potential supply chain disruptions before they occur and allow supply chain executives to effectively mitigate risks and ensure the continuity of supplies.
Key factors to consider when giving your supply chain a digital overhaul
In 2023, recession concerns may halt the healthcare sector’s tech investments that were on the rise during the past three years. Those companies that still choose to invest in the Internet of Things will need to keep certain things in mind in order to ensure the success of their digital transformation. Here’s a rundown of the most critical ones:
Scaling IoT solutions across the supply chain
The healthcare supply chain is a complex system with numerous processes and workflows, and it is rarely feasible to implement a single IoT solution that covers it all. Therefore, when digitizing your supply chains, we recommend opting for an iterative approach.
Say, you’re rolling out an IoT-based tracking solution to automate a share of daily inventory management operations. The first step is to conduct a detailed analysis of your organizational processes, identifying what can and cannot be automated. Then, prioritize the areas where IoT can add the most value to your supply chain. Focus on implementing IoT in those areas to achieve the fastest possible return on investment. With the initial solution in place, you can expand and enhance the technology both horizontally and vertically.
Ensuring compliance with healthcare regulations
Rolling out technology in the heavily regulated healthcare industry is no easy feat. It requires a technology partner with a deep understanding of the sector’s complexities and nuances.
Before designing an IoT solution, make sure they thoroughly study the environment the technology will be used in, including organizational settings and relevant stakeholder groups. During development, it is crucial that they meticulously document the entire process — this will allow you to communicate effectively with regulatory authorities.
Finally, before implementing the technology company-wide, consider conducting an external audit to minimize potential compliance risks.
Maintaining IT infrastructure security
As healthcare supply chain management becomes more reliant on technology, it’s crucial to be aware of potential cybersecurity threats. To ensure the safety of your systems, it’s essential to create a well-planned cybersecurity strategy at the outset of development and refer to it regularly throughout the process. Your strategy should include a clear action plan for detecting, preventing, and mitigating security risks. Additionally, you may want to consider running external security audits for extra safety.
To sum it up
The healthcare sector has undergone a significant transformation, so has healthcare supply chain management. Despite the challenges, medical organizations are turning to modern technologies, particularly IoT, to build more resilient supply chains. IoT technologies will continue to play a key role in enabling safer, more transparent, and resilient healthcare supply chains, while alleviating risk management headaches and mundane administrative tasks.