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Little is known about actual price savings generated by cooperative purchasing and nonmonetary advantages, disadvantages and impediments for the cooperative purchasing of complex or high-risk purchases. This paper aims to explore these topics by studying joint purchasing of pacemakers in The Netherlands.

To evaluate the magnitude of price savings, data on individual and collective prices for 18 hospitals was analyzed. In addition, 16 interviews were carried out with representatives of hospitals that participated and did not participate in the joint purchase.

Based on quantitative and qualitative data, the authors found large differences in price savings which can be attributed to scale, but mostly to knowledge of the group and renewing a contract in a technology-driven and developing market. Limited product choice – because of an organization joining a cooperative – constrained the attractiveness of cooperative purchasing, as end users may have specific product preferences. The consideration of preferences of end users is important toward successful joint purchasing of complex items.

The authors argue that price savings because of scale are about 7% for smaller organizations and 4% for larger organizations. For smaller organizations with low specific knowledge and capacity for buying complex products, economies of process and knowledge are more important reasons for joining a purchasing group than scale. For large organizations with high specific knowledge and capacity, scale is the most important reason.

This study combined qualitative and quantitative perspectives, using actual spend data, to investigate cooperative purchasing of high-risk or complex purchases. On the one hand, more insight into the magnitude and reasons for price savings is provided than in earlier literature. On the other hand, more insight is given in qualitative reasons for joining a group and challenges for cooperative purchasing of complex items.

The promulgation of group purchasing organizations (GPOs) into the healthcare (HC) sector is an invaluable procurement strategy to manage the suppliers effectively. This study aims to identify and prioritize the factors of integrating GPOs into the HC sector on the perspectives of the developing countries such as India.

The factors are identified from current literature exploration, experts’ support and experience surveys. The factors are scrutinized and shortlisted using the Delphi technique and analysed further using the best-worst model method.

The findings of the study highlight the cost reduction, fair distribution of savings and healthcare supply chain (HCSC) data standardization among others to be the most prioritized drivers. The consulting services provided by GPOs including training and development as a result of high competitiveness in the HC market has been prioritized the least.

The study bears some important implications for decision and policymakers. The managers should consider factors, namely, cost reduction, fair distribution of savings and HCSC data standardization on a priority basis that acts as motivation for the HC providers to join the GPOs.

The study provides valuable insights for HC providers to participate in the GPOs for cost savings and enhance the performances.

This paper aims to explore effective supply chain principles, through the theory of transaction cost economics, as measures to improve current contingency pharmaceutical item shortfalls in the Air Force Medical Service (AFMS) Contingency Pharmaceutical Programme.

In this research, AFMS contingency pharmaceutical data was collected from various databases, including the Joint Medical Asset Repository, Medical Contingency Requirements Workflow and the Medical Requirements List. Through the methodology of cost-benefit analysis, alternative sourcing and fulfilment practices are evaluated.

The findings of this research indicate that the application of centralized purchasing principles, in an effort to leverage prime vendor contract fill rates for shortage items, can lead to 12%–17% increases in pharmaceutical material availability across the programme.

This research clearly shows that consolidating demand for shortage items across Active Duty War Reserve Material assemblages, though applications of centralized purchasing principles that leverage prime vendor contract fill rates, can lead to substantial increases in material availability at costs that justify the calculated benefits.

This study aims to identify supply chain (SC) management practices applied to purchasing capable of improving the resilience of the health-care SC and mitigating the effects of material and service disruption during pandemics.

The approach adopted is qualitative and is based on a systematic literature review from the ScienceDirect, Emerald, Wiley and Web of Science databases. After selecting 705 documents, filters are applied, and 52 articles present problems faced by purchasing the health-care SC during the coronavirus disease 2019 (COVID-19) pandemic.

This article suggests five propositions of resilient practices that can increase purchasing resilience in the face of pandemics such as COVID-19. The proposed practices are collaboration, flexibility, visibility, agility and information sharing, which suggest a sequence for the adoption of management practices based on the number of occurrences and importance found in the analysed studies.

This study does not find robust empirical evidence that could categorically state that the results can be replicated in organisations in general. Thus, as a continuation of research, more studies should use an empirical methodology and case analysis to organise different branches. As the human factor was decisive for the results observed in the literature, future research should dedicate part of the studies to the psychological area of professionals. Actions to combat the pandemic were implemented, impacting positively and negatively on the results obtained. Future research on combat actions could indicate which ones should be avoided.

As a result, disruptions are expected to be reduced, and consequently, the resilience of the SC will increase. Accordingly, purchasing processes and procedures can be redefined to positively influence the resilience of the health-care SC. Resilience is related to maintaining the flow of supply, as well as systems and actions aimed at mitigating the effects of disruptions in the hospital’s core business.

Health systems need to respond to society’s needs even in the face of global crises, such as the one faced during the COVID-19 pandemic. The overload in hospitals and the exponential demand for specific medicines and services in the fight against the crisis caused by the COVID-19 pandemic require enormous coordination in procurement by the purchasing sector. This planning aims to ensure that the care provided by health services maintains the flow of value that serves hospitalised patients.

This study introduces a new approach to the recurrent problem of disruption of the health-care SC during a pandemic using a combination of five important management practices. This proves useful for mitigating disruptions and their effects on the health-care SC.

Bryan Preston, CEO of the Back Office Cooperative, leads several large human service providers through the process of building a shared-services platform to leverage scale and efficiencies. This successful collaboration matches the business case for restructuring against the constraints of mission-driven enterprises.

The case seeks to demonstrate how collaboration, scalability, and leadership interact in a nonprofit organization to produce desirable outcomes from which other organizations, leaders, and resource providers might learn.

The Department of Veterans Affairs (VA) spent $500 million and the Department of Defense (DOD) spent $240 million for medical and surgical supplies in fiscal year 2001. Since the 1980s, to achieve greater efficiencies through improved acquisition processes and increased sharing of medical resources, VA and DOD signed a memorandum of agreement in 1999 to combine their buying power. VA and DOD saved $170 in 2001 by jointly procuring pharmaceuticals, by agreeing on particular drugs to be purchased, and contracting with the manufacturers for discounts based on their combined larger volume. VA and DOD have not awarded joint national contracts for medical and surgical supplies as envisioned by their memorandum of agreement, and it is unlikely that the two departments will have joint national contracts for supplies anytime soon. However, a few VA and DOD facilities have yielded modest savings through local joint contracting agreements. The lack of progress have made in jointly contracting for medical and surgical supplies has, in part, been the result of their different approaches to standardizing medical and surgical supplies. Other impediments to joint purchasing have been incomplete procurement data and the inability to identify similar high-volume, high-dollar purchases.

The article deals with issues such as the size of a purchasing group, the types of benefits aimed for, and the real beneficiaries of purchasing groups.

The observations are based on the literature, as well as on interviews, mostly with Canadian and US health‐care managers.

Although often associated with the public sector, purchasing groups are also an alternative considered more and more by managers of the private sector. A purchasing group increases volume consolidation, making it possible to have only one negotiation, in order to increase the purchasing group members' power vis‐à‐vis that of its suppliers. However, a purchasing group also constitutes an additional link in the supply chain and its objectives could go contrary to those of some of its members. This is why organisations considering joining a purchasing group should analyse this option strategically, in order to assess correctly the potential long‐term benefits.

This article suggests key questions and an analytical framework to help managers assess the potential benefits and drawbacks of joining a purchase group.

Healthcare supply chains (HSCs) have been adopting Industry 4.0 (I4.0) as a means to boost their resilience. The first objective of this study is to identify the effect of contextual variables of HSCs on resilience development and I4.0 adoption. Second, the paper examines the pervasiveness of the relationship between resilience and I4.0 across different contextual characteristics.

179 organizations from the HSC in Brazil and India were surveyed. Responses were analyzed using multivariate data techniques.

Large HSC agents are more likely to develop resilience abilities and adopt I4.0 technologies when these factors are analyzed independently. However, the joint analysis of resilience and I4.0 displayed a large number of significant correlations among small organizations.

Findings provide managers of HSC arguments to enhance resilience through the digitalization. HSC organizations can identify HSC organizations' context to tailor initiatives on resilience and digitalization.

The purpose of this paper is to investigate how buyers and the vendors pursue alignment in collaborative purchasing (CP) of complex medical technologies.

Through a literature review in CP, the paper identify factors for shareholder alignment (i.e. aligning the needs of the buyers within the purchasing group) and customer alignment (i.e. aligning buyers’ needs with the vendors offering strategies) and investigate how they manifest in the case of CP of complex technology in the Danish National Healthcare System.

Shareholder alignment requires appropriate management of the relationships, expertise and guidance in simplifying procedures and effective management of the purchasing group. Customer alignment is facilitated by buyers’ understating of the vendor’s design options, which are moderated by the vendor’s design strategies.

The findings and generalizations from a single case study are limited to the complexity of the purchased technology and the specific cultural context. However the paper represents the first explorative study that poses the attention on the relevance of shareholder and customer alignment in CP.

The study can offer hospitals, vendors, governmental and regional institutions a better understanding about the alignment mechanisms for successful implementation of CP and how to avoid pitfalls.

Literature on CP is scarce as there are virtually no contributions that debate the key elements and tradeoffs that need to be considered for strategic alignment. The study addresses this gap.

The purpose of this paper is to determine if internal integration, information sharing, and training constitute direct antecedents to organizations’ warning and recovery capabilities. Assuming that organizations periodically face various supply chain risks, the authors intend to show that managers can develop these antecedent competencies in ways that bolster their supply chain risk management (SCRM) capabilities.

To understand the relationships between the antecedents and SCRM capabilities, the authors used Q-sorts and confirmatory factor analysis to develop new warning and recovery measures. The authors then collected survey data from 231 hospital supply managers and analyzed these records using structural equation modeling.

The results indicate that internal integration and training positively affect organizations’ warning and recovery capabilities, in both a direct and indirect manner. The authors also illustrate how managers can leverage their SCRM capabilities to affect operational performance.

These results suggest that by developing antecedent competencies like internal integration and training, firms may bolster their warning and recovery capabilities, and ultimately operational performance of the organization.

The findings provide hospital supply organizations and other inventory management teams with a novel approach to managing an evolving array of supply chain risks. Rather than investing in costly risk management techniques, like inventory stocks, organizations can use internal integration and training to improve their SCRM capabilities.