Strengthening Public Healthcare Supply Chains with Technology - Justin Chan, Trace Consultants
Supply chain management in the healthcare network
Australia’s healthcare supply chains are primarily managed on the State level. In some States, a public institution is delegated with the responsibility of providing supply chain functions to service the healthcare network. As examples, HealthShare Victoria (HSV) and HealthShare NSW (HSN) are the respective entities in Victoria and NSW that manage supply chain surety, procurement and logistics on behalf of their States’ public health system. A crucial aspect of their roles lie in the supply and distribution of PPE, pharmaceuticals and other medical inventory to public hospitals, clinics and other health providers.
Art and science of balancing inventory levels
State health supply chains necessitate a delicate balancing act to support the healthcare system. Pandemics like COVID-19 exposed vulnerabilities in an underequipped supply chain, with essential medical supplies seeing supply shocks and highlighting the need for greater resilience. On the other hand, holding too much medical stock will lead to waste, as many perishable items have limited shelf lives. Excessive stockpiling may also divert resources away from other essential healthcare services in supply chain management.
Resilience in complex supply chains
With a recent pandemic in mind and the costs of carrying inventory at an all-time high, it is now more pertinent than ever for centralised health institutions such as HSV and HSN to proactively transform their capabilities in people, processes and technology to build stronger and more flexible State healthcare supply chains. The rapidly evolving and complex nature of medical supply chains – which involve many stakeholders, stringent regulations and critical delivery timelines, call for a level of adaptation that institutions must be prepared for.
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The Role of Technology
In the highly volatile landscape of the public healthcare system, it is crucial that centralised providers begin to adopt leading technologies to bolster planning and inventory management processes. Advanced tools such as AI (artificial intelligence) powered forecasting, dynamic inventory planning and logistic networks optimisation can work in harmony to support a resilient and responsive supply chain.
Enhanced Demand Forecasting
AI and advanced analytics have transformed demand forecasting by enabling highly accurate predictions based on real-time data. Machine Learning frameworks, predictive analytics platforms, and cloud-based AI tools help to automate data analysis, detect trends and forecast future demand with precision.
For centralised health service providers, enhanced demand forecasting is essential to ensure the timely availability of critical medical supplies and equipment to each State’s healthcare network. When considering the application of these tools, the key will lie in establishing clear objectives and leveraging scalable solutions to gradually build up data-driven forecasting capabilities. External variables such as public health trends and regulatory changes could also be incorporated to support a comprehensive implementation.
Dynamic Inventory Management
Dynamic inventory management tools leverage advanced technologies to optimise inventory levels, ensuring that in times of change or disruption, distributors of essential medical supplies can avoid stockouts and gain real-time inventory visibility over the supply chain.
At the same time, these tools help to minimise holding costs and wasted stock. AI modelling can aid in inventory management for medical products with varying shelf lives or batch requirements by factoring in expiration dates, regulatory changes and more. This technology can also segment inventory based on product types, enhancing accuracy when planning inventory levels for items in high-demand or with complex storage requirements.
Logistics Network Optimisation
Logistics network optimisation technology is crucial for centralised health service providers aiming to reduce transportation costs, improve delivery times and streamline health supply chain efficiency.
Key solutions including transportation management systems, route optimisation tools and AI-powered logistics platforms enable dynamic adjustments to delivery schedules and account for unforeseen factors such as traffic, weather and demand surges. In times of emergency, AI algorithms can also reroute shipments in response to real-time data and prioritise deliveries for urgent medical supplies.
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How Trace Consultants Can Assist State Health Institutions
Trace Consultants’ expertise in healthcare supply chains, along with being an approved seller on the federal BuyICT panel, positions us as a strategic partner for State health institutions.
Enhanced Demand Forecasting
trace. can provide AI-driven forecasting tools that deliver precise demand predictions for critical medical supplies. These solutions help centralised health service providers ensure timely delivery and make data-driven decisions by integrating real-time insights and public health trends.
Dynamic Inventory Management
Our consultants can implement inventory management systems to optimise stock levels, reduce waste, and prevent shortages. Using AI-driven modelling, these tools handle diverse product requirements, enabling real-time adaptability and efficient inventory control.
Logistics Network Optimisation
We can enhance your logistics efficiency with AI-powered tools that optimise routes, reduce costs, and respond dynamically to disruptions. In emergencies, these systems prioritise and reroute shipments, ensuring critical supplies are delivered promptly.
Next Steps
Public health entities are a key line of defence for States to protect the lives of Australians. To do so, modernising supply chain capabilities and technologies is the key to ensure a resilient and flexible healthcare network that can adapt to future health events. trace. is positioned well to support the State governments in carrying out this objective.
Justin Chan
Consultant
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