The supply chain has become increasingly important for companies working in the healthcare
industry emerging as a key differentiator in the competitive and fast changing $3 trillion
healthcare sector, according to the latest Frost & Sullivan research on the dynamics of the
future healthcare supply chain, released by FedEx.
The new study “Improving Profitability, Improving Customer Loyalty, Improving Lives” showed that
over 80% of the healthcare supply chain executives surveyed evaluate the supply chain as ‘extremely
important’ to reaching profitability targets (89%) and revenue targets (83%). In addition, 61%
agree that cost reduction strategies in the supply chain have been ‘extremely important’ to tackle
customer pricing pressure.
“Consolidation and other changes within the sector means healthcare companies are experiencing
growing financial and pricing pressure,” Carl Asmus, VP Global Supply Chain Solutions and Market
Development, FedEx Services, said. “More healthcare companies are using their supply chain as a way
to stand out from their competitors and realise their financial goals,” he added.
“Product differentiation can take many forms beyond just the specific clinical attributes of a
product, and the supply chain plays a critical role in separating one product from another,” said
Paul Higday, Vice President, Marketing & Communications, Owens & Minor – a healthcare
logistics provider and FedEx customer. “If a product is always available and delivered in an
efficient and cost effective manner, it’s harder for a competitor to take away your market
share.”
Frost & Sullivan designed and administered a survey to 39 high-level healthcare products and
services executives at FedEx’s 2014 HealthCare Solutions Executive Forum taking place October
28-29, 2014 in Miami. This information was supplemented with in-depth interviews with selected
executives to identify insights on the dynamics shaping the future supply chain. The survey sample
included a broad range of companies cutting across the medical device, diagnostic, pharmaceuticals
and biotechnology segments as well including major healthcare products distributors.
The release of the Frost & Sullivan paper coincides with the launch of the new FedEx Global
HealthCare Solutions website
www.fedex.com/healthcare.
