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

Abstract

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.

Analysis of the performance measurement process of a 3PL provider: the case of a multinational company

“…Finally, evidence shows an incipient structuring for performance evaluation, which is in line with the specific literature of the logistics sector (Beaulieu et al, 2018;Zago et al, 2008, p. 191). Such conclusions are not only of interest to the company studied.…”

“…It is in this specific aspect that this study is inserted. There is evidence that this process is poorly structured and lacks a structured approach in the logistics sector (Beaulieu et al, 2018;Zago et al, 2008), which makes performance management unfeasible. The measurement process is explored here based on the characteristics, roles and processes defined by Franco- Santos et al (2007), as previously discussed.…”

“…Nevertheless, there is evidence that this process is poorly structured and lacks a systematic approach in the logistics sector (Beaulieu et al, 2018;Zago et al, 2008). This is also observed in other economic sectors, such as construction (Cândido et al, 2016), tourism (Sainaghi et al, 2017), digital marketing (Järvinen & Karjaluoto, 2015), and even the public sector (Schwartz & Deber, 2016).…”

Measuring Purchasing Groups Performance in the Health Care sector

“…During the preliminary data analysis, we realized that it would be very valuable to further analyze the concepts of tensions and performance associated to purchasing groups. It should be noted that other supply chain researchers have also used an opportunistic approach successfully (for instance, see Beaulieu, Roy, & Landry, 2018;Schreiner, 2015). von Krogh, Rossi-Lamastra, and Haefliger (2013) call this approach "phenomenon-based research": themes that have not been researched much, which are a major managerial issue in organizations, and which arise from on-site observations.…”

“…There was clearly a conceptual gap. It should be noted that other supply chain researchers have also used an opportunistic approach successfully (for instance, see Beaulieu, Roy, & Landry, 2018;Schreiner, 2015).…”