Regulations compliance number one concern for healthcare buyers

11 August 2011

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11 August 2011 | Adam Leach

Purchasers in healthcare have named compliance with rules and supply chain costs as primary obstacles in the sector, according to a report.

Pain in the supply chain 2011, published by UPS, found that 73 per cent of those surveyed find complying with regulations the main area of concern as a result of the more globalised and complex nature of today’s supply chains. In the 2010 report it was the third-highest concern with 60 per cent citing it.

Other key concerns identified in the report – which surveyed 250 senior procurement and logistics managers from the global healthcare sector – are managing costs in the supply chain, which held strong at 64 per cent, and ensuring product security, which rose 21 per cent to 61 per cent.

Bill Hook, vice-president, global strategy, UPS Healthcare Logistics, said: “Change is the only constant in healthcare today and it is happening on a global scale, driven by factors such as cost, regulatory pressures and global expansion.

“Going forward, companies have to find new ways to innovate and adapt to rapid market changes and this is where the supply chain plays a pivotal role.”

The factor that showed the highest increase was concern over product damage or spoilage, 56 per cent seeing it as a major concern, up from 29 per cent in 2010.

The survey also examined what is motivating buyers to increase sustainability in their organisations. It found that 30 per cent are responding to external pressures while 67 per cent are doing it for business alignment and strategy reasons.

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