Supply chain redesign in the healthcare industry of Singapore

Abstract

Purpose

The paper aims to investigate cost reduction in logistics and supply chain management of medical supplies.

Design/methodology/approach

The paper takes the form of a case study.

Findings

In many healthcare systems, executives focus on cost containment efforts to lower acquisition price of supplies instead of lowering the total delivered cost. However, the case in this research presents a novel contemporary approach to reduce costs by process reengineering in supply chain management.

Originality/value

Healthcare managers are continually searching for innovative ways to contain costs without sacrificing quality. To achieve a reduction in costs, hospitals need to review their activities and associated costs, and eliminate nonvalue‐added activities. The novel process reengineering presented in this paper is concerned with the centralization of warehousing and the control of non‐production goods.

Citation

Kumar, A., Ozdamar, L. and Ning Zhang, C. (2008), "Supply chain redesign in the healthcare industry of Singapore", Supply Chain Management, Vol. 13 No. 2, pp. 95-103. https://doi.org/10.1108/13598540810860930