Collaborative management of inventory in Australian hospital supply chains: practices and issues

Bhakoo, Vikram; Singh, Prakash J.

doi:10.1108/13598541211212933

Cited by 100 publications

(107 citation statements)

References 30 publications

(53 reference statements)

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“…With limited knowledge on collaborative approaches and the priority being on clinical tasks, inventory management can be of less concern in hospitals (Bhakoo et al, 2012, Chen et al, 2013. Only a few studies have been conducted to date on VMI adoption in hospital contexts (Bhakoo et al, 2012;Guimaraes et al, 2012;Watson et al, 2012).…”

Section: Discussionmentioning

confidence: 99%

“…The system shows how information sharing and business reengineering affect cost reductions realized from VMI. Bhakoo et al (2012) explore collaborative inventory management approaches in Australian hospital supply chain. They identify product characteristics as one of five contingent factors affecting the development of collaborative relationships.…”

Section: Vmi In the Hospital Industrymentioning

confidence: 99%

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The adoption of vendor managed inventory for hospital pharmaceutical supply

Krichanchai

MacCarthy

2017

IJLM

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The study investigates Vendor Managed Inventory (VMI) for the supply of medicines between distributors and hospitals to identify factors that may affect VMI adoption. Multiple case studies are conducted involving five organizations (three hospitals, one distributor, and one manufacturer/ supplier). Four dyadic relationships are identified. Triangulation techniques are used in data collection, including interviews, site visits and document analysis to enhance reliability and validity. Case studies have been analyzed individually and comparatively. Two types of VMI initiatives -public and private sector -are identified in the supplier/hospital context. The public sector supplier focuses on improving service level while the private sector supplier seeks to strengthen relationships with key customers. Hospital characteristics, including the type of hospital, top management perspectives, and the hospital's willingness to share information, are critical in decisions on VMI initiation or termination. Relatively stable demand products are preferred for a VMI approach. Hospitals may perceive risks in VMI adoption for medicines as it involves relinquishing control of critical supplies and may result in 'lock-in' with a particular supplier. The paper provides supply side and demand side perspectives on VMI adoption in an important sector. It highlights the need for greater understanding of the perceived and actual risks in VMI from the perspective of both the hospital and the supplier and for much clearer advice on which pharmaceutical products are appropriate for VMI control in a hospital context. VMI is advocated as being beneficial in many supply contexts. However, it may be challenging to implement. This study identifies a range of factors that affect the adoption of VMI in hospital pharmaceutical supply chains. The cases have been conducted in one country, which may affect the generalization of the findings. Wider empirical evidence from other countries in both developed and less developed regions will be beneficial.

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Section: Discussionmentioning

confidence: 99%

Section: Vmi In the Hospital Industrymentioning

confidence: 99%

The adoption of vendor managed inventory for hospital pharmaceutical supply

Krichanchai

MacCarthy

2017

IJLM

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“…Since it is based on a significant number of different variables and relationships among them and on all the product types in a HC warehouse, it contributes to overcome the traditional approach to HC SCs limited to the analysis of single aspects of these systems (Bhakoo et al, 2012;Rich and Piercy, 2013). Also, it provides an evaluation of the ex-ante conditions of the organizations involved in centralization initiatives, while several existing pieces of research discuss expost benefits (Lega et al, 2013).…”

Section: Discussionmentioning

confidence: 99%

“…In particular, there are few studies that focus on all the significant system elements and relationships between them (Bhakoo et al, 2012;Rich and Piercy, 2013). Among the relevant literature, a number of works (Nicholson et al, 2004;Pan and Pokharel, 2007) have addressed the benefits and limitations of logistics outsourcing in HC organizations as a way of achieving efficiency by focusing internal resources on core processes (Brunetta et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Another topic well debated in literature is inventory management due to its relevance in HC logistics dealing hospitals with large amounts of a great variety of products and carrying inventory costs ranging from 10 to 18% of the net revenue (De Vries, 2011). Within such a research stream, collaborative arrangements, cross-docking and vendor management inventory are discussed (Bhakoo et al, 2012;Marquès et al, 2010;Su et al, 2011). A further aspect that is gaining momentum in HC SCM is warehouse centralization.…”

Section: Introductionmentioning

confidence: 99%

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Paving the Way for Warehouse Centralization in Healthcare: A Preliminary Assessment Approach

Cagliano¹,

Grimaldi²,

Rafele³

2016

American Journal of Applied Sciences

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Centralized logistics management is currently one interesting option for healthcare systems facing an increasing need to improve responsiveness and service quality while reducing costs. This work focuses on one aspect of centralized logistics, namely warehouse centralization and proposes a preliminary approach to assess material management in healthcare institutions as a first step towards decisions about the implementation of such a strategy. A list of variables and relationships between them characterizing warehouse material management are identified based on a literature review and knowledge of real logistics processes. Statistical analysis is then applied to assess the existence of such relationships in a set of healthcare organizations in order to understand the management commonalities that can stimulate warehouse centralization as well as the criticalities that could potentially hinder it. The approach is tested in a healthcare logistics system in Northern Italy. The results proved the ability of the methodology to identify the relevant issues the involved institutions need to work on when undertaking warehouse centralization strategies. The case warehouses revealed a good degree of commonalities in their management practices although three critical aspects were identified, namely a limited efficiency in human resource allocation, a high fragmentation of stock product demand and a relevant number of stock products with low annual demand. This work provides a methodology to increase material managers' awareness about the factors enabling successful centralized inventory strategies in the healthcare sector.

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Logistics outsourcing in the healthcare sector: Lessons from a Canadian experience

2018

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Logistics activities are seen by many healthcare organizations as an opportunity for financial savings. The level of logistics complexity in these organizations may explain the challenges they face in applying solutions common in other industries. This case study of a medical‐supply distribution outsourcing initiative to a logistics services provider by a group of hospitals in a region of Canada helps elucidate this complexity. The objective of this article is to identify the dissonances between various points of view in order to articulate lessons for managers while taking into account the specifics of the healthcare sector. By examining information from several sources, this study shows the necessity of: 1) setting objectives and managing expectations in order to maintain the interest and participation of stakeholders throughout the project; 2) updating internal logistics processes prior to outsourcing; 3) carefully considering a gradual transition phase by ensuring short‐term benefits for both partners; 4) requiring problem‐solving skills as a selection criterion for the logistics services provider to ensure continuous improvement in the performance of the outsourced activity; and 5) developing a governance accountability framework to support problem solving between all parties involved. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.

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Collaborative management of inventory in Australian hospital supply chains: practices and issues

Cited by 100 publications

References 30 publications

The adoption of vendor managed inventory for hospital pharmaceutical supply

The adoption of vendor managed inventory for hospital pharmaceutical supply

Paving the Way for Warehouse Centralization in Healthcare: A Preliminary Assessment Approach

Logistics outsourcing in the healthcare sector: Lessons from a Canadian experience

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