Supply Chain Processes that Lead to a Competitive Advantage for a Manufacturer Compared to a Health Care Provider

Abstract

A literature review and interviews determined the extent to which supply chain management practices can be generalized to health care provider supply chains. The Proximal Similarity Model was used to compare ten supply chain processes. Major similarities were detected in product standardization and leverage across buying units as well as eCommerce. Some similarity was detected in three processes: supply strategy development; supplier integration and inventory management as well as alliances. Little similarity was detected in five processes: total cost management; supplier improvement; early involvement in new product development; consortium buying; and the role of distributors. The conclusion is that structural modifications are required for health care provider supply chains to be as effective as manufacturer supply chains.