In the healthcare industry , the reliability of supply chains is not just a matter of business efficiency ; it can be a matter of life and death — as we saw during the COVID-19 pandemic . The products managed within these supply chains — ranging from surgical instruments to PPE to life-saving medications — are essential to patient care , and any disruption can have dire consequences . Unlike other industries , where delays might result in financial loss , in healthcare , a delayed or unavailable product can directly impact patient outcomes .

When SCO Magazine spoke to Marisa Farabaugh , senior vice president and chief supply chain officer , AdventHealth , back in the spring of 2021 at the height of the pandemic , she noted that it ’ s one thing if you work for a candy manufacturer : you know your production schedules , your raw materials , waste , etc . You can rely on just-in-time ( JIT ) inventory , mainly because you can cleanly predict seasonally and when you need something on hand . But with healthcare , you can ’ t ever be without a critical supply .

The complexity of managing these supply chains is further compounded by strict regulatory requirements , the need for impeccable quality control , and the unpredictability of demand . As a result , healthcare systems must operate with an exceptional level of foresight , ensuring that critical supplies are always available when needed .

“ Diversification is looking end-to-end across the supply chain for potential points of failure and then trying to build in redundancy and risk mitigation — whether that ’ s manufacturing , logistics , warehousing , etc .— so we ’ re either eliminating or minimizing those potential failure points wherever we see them .”

— Josh Wolfe , senior vice president of inventory management , Medline

Diversification is the heart of resiliency Given these high stakes , supply chain resiliency has emerged as a key focus for healthcare distributors and the systems they serve . At the heart of this resiliency is the strategy of supply chain diversification . For the distributor , supply chain diversification means having a robust and adaptable network that can quickly respond to changes in demand or supply conditions . This is crucial for a supply partner , as hospitals rely on consistent and timely delivery of a vast range of products . By diversifying their supply chain , a distributor not only ensures a steady flow of essential goods but also demonstrates their commitment to maintaining high service levels under all circumstances .

This approach not only mitigates risks associated with supplier disruptions but also enhances the overall stability and reliability of the supply chain . For healthcare distributors , diversification is not merely a strategic advantage ; it is a necessity to ensure that hospitals and clinics can con-

Medline brand products

tinue to provide uninterrupted care , even in the face of global disruptions . By prioritizing supply chain diversification , distributors can better serve their customers , ultimately safeguarding patient care and maintaining the trust that healthcare providers place in them .

countries with extensive sourcing partnerships

What healthcare systems need from their supply chain partners The ultimate goal in healthcare supply chain is being able to supply the product providers need to take care of the patients that they serve . Prior to the pandemic , systems sometimes took it for granted that supplies would always be there — they were accustomed to high fill rates , so supply chain wasn ’ t top of mind . The “ trust but verify ” mentality has been tested , as a lot of the trust systems

manufacturing sites in 7 countries

had in their suppliers was lost during the pandemic . The focus now is more around verify , validate and provide the visibility , in order to avoid any large-scale outages . Data has become key — along with communication — so that systems have both down-

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28 SUPPLY CHAIN OPTIMIZATION Issue 9 / 2024