The application of healthcare supply chain management is of considerable significance to the development of enterprises. It can help companies standardize product management through product supply and demand relationships and intelligent feedback, reduce overall operating costs, and enhance corporate profitability. At the same time, in the context of the Internet of Things and mobile Internet, big-data-driven supply and demand management has allowed companies to return to the roots of supply chain management. It also helps companies quickly informative, gradually realize digital factories, and quickly enter the era of Industry 4.0. It can help medical companies choose logistics providers that can help them reduce transportation risks. The healthcare supply chain management provides the solution for the distribution of healthcare, personal care, dental supplies, medical supplies, and pharmaceuticals from small regional distributors to large multinational companies.
The global healthcare supply chain management market size was valued at USD 1.93 billion in 2019 and is projected to generate revenue of USD 3.16 billion by 2027, registering a CAGR of 18.61% over the forecast period 2020-2027. The major factors attributed to the growth are the emergence of cloud-based solutions, and growing usages of supply chain management by healthcare providers to improve operational efficiency and profitability. Additionally, the technological advancements in analytics, machine learning, and the advent of social media and Big Data in the healthcare industry will augment the robust growth of the healthcare supply chain management market. Moreover, the surge in the application supply chain management in healthcare to effectively reduce costs, growing efforts to deliver high-quality services on time, and technological advancements in and automation of the processes expected to propel the growth of the healthcare supply chain management industry.
Healthcare supply chain management solution helps in inventory, temperature-controlled storage, storage of hazardous materials, peak/bottom order volumes, product tracking, order/inventory accuracy, and FEFO strategies. Strategy management software provides real-time control, visibility, and operational insight. Furthermore, better patient care and compliance with government regulation would likely foster the healthcare supply chain management market growth. Also, the growing adoption of GS1 standards and unique device identification (UDI) for medical devices is estimated to trigger the healthcare supply chain management market share in the forthcoming years.
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GS1 promotes and applies a standard system for coding and automatic data identification worldwide. At present, coding organizations of 150 countries and regions have established medical user groups in their respective countries and regions to promote the implementation of the GS1 standard in their own countries or regions, to improve the efficiency of medical supply chain management. GS1, as a widely used coding standard system in the world, has been adopted by more than 2 million companies in more than 150 countries and regions. It is widely used in many fields, including healthcare, which significantly improves the efficiency of the global supply chain. In the final guidance document of the Medical Device UDI System formulated by IMDRF, it is recommended to adopt UDI based on GS1 standard system.
To treat cancer patients, reduced medical costs, and interact with patients, medical systems are now adopting a new approach to care delivery, and patient interaction in cloud-based solutions play a key role in achieving this goal. With the rise of intelligent mobile terminals, patients rely on mobile medical applications to self-service health management anytime, anywhere, and medical institutions can also grasp the health status of patients in real-time.
Healthcare supply chain management solves labor problems such as shortages and high turnover rates and keeps up with the rapid growth of the number of new products and packaging options. It helps in facilitate tracking products through the supply chain and adapt to changing regulatory requirements, product handling requirements, and customer needs. Healthcare supply chain management support-controlled access to inventory, temperature-controlled storage, storage of hazardous materials, peak and trough orders, product tracking, order/inventory accuracy, and FEFO strategies.
Based on the component, the global healthcare supply chain management market classified into Software (Inventory Management Software and Purchasing Management Software), Hardware (Barcodes and Barcode Scanners, Systems, RFID tags, and others) and Services. The Software segment accounted for the largest market share in 2019 and will witness significant growth in the forecast period. It is primarily attributed to the software-based supply chain’s increased efficiency, reduced costs, and business, and it is focusing on the enhancement of patient outcomes and real-time sharing of patient data. It includes inventory management software and purchasing management software.
The hardware segment will grow with a lucrative rate over the forecast period. It is due to hardware component like barcodes offer cost-effective solutions to hospitals and manufacturers and assist in managing medical devices by providing the right information at the right time.
Based on delivery mode, the global healthcare supply chain management market segregated into on-premise and cloud based. The cloud-based segment held a lucrative share in 2019 and projected to dominate the global healthcare supply chain management market by 2027. It is owing to growing huge demand for cost-effective, user-friendly technologies and a higher acceptance rate among medical device manufacturers.
The on-premise segment will grow at a significant rate in the forecast period. It is owing to on-premise help in effective implementation and governance, policies and processes, staff recruitment, and training and retention.
Based on end-user, the global healthcare supply chain management market categorized into healthcare manufacturers, healthcare providers, distributors, and logistics. The healthcare manufacturers segment held for a significant market share in 2019 and will witness to gain maximum market revenue by 2027. It is attributable to the manufactures’ need for supply chain management solutions to coordinate their transportation and warehouse facilities better. Additionally, the supply chain ensures faster, more accurate, and more efficient functioning.
The distributors’ segment grows with a momentous rate in the forecast period. It is due to the supply chain help to distributors to coordinate between healthcare providers and manufacturers efficiently.
Based on geography, the global healthcare supply chain management market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s share in the healthcare supply chain management market by 2027. It is owing to the rising prevalence of chronic diseases, the presence of major pharmaceutical companies in this region coupled with the various government initiatives, and augmented implementation of technologically advanced solutions.
The Asia Pacific, a prominent share of the healthcare supply chain management market and projected to remain dominant by 2027. It is due to the presence of mobile-based healthcare supply chain management solutions providers and the growing implementation of technologically advanced solutions in emerging countries.
Companies such as Oracle Corporation, SAP SE, Infor Inc., McKesson Corporation, Global Healthcare Exchange (GHX), TECSYS Inc., LogiTag Systems Ltd., Jump Technologies, Inc., Manhattan Associates, JDA Software, and Cerner, are the key players in the global healthcare supply chain management market.
By Component
By Delivery Mode
By End-User
By Region
Global Healthcare Supply Chain Management Market
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