Health care is one of the notable, rapidly growing industries
globally. It includes various segments such as medical devices,
pharmaceuticals, information technology, and services, all of which
are developing at a fast pace. Today, the health care industry is
under immense pressure to deliver high-quality medical care owing to
an increasing demand for better facilities and services from patients
around the world. But it is also rife with the omnipresent threat of
increasingly expensive delivery of quality services. Although
constant efforts are being taken by health care providers to reduce
costs by eliminating waste and improving their operations, often the
chief aspect of supply chain, which is responsible for an estimated
one-third of all the operating costs, is missed out. The health care
supply chain involves three main groups: producers (manufacturing
companies), purchasers (wholesalers and distributors), and providers
(hospitals, pharmacies, and clinics). Currently, the supply chain is
facing major problems in terms of delivering services on time,
because the fact that every part of it works independently, and not
as a collective system, creates a misaligned network. This has led to
a gamut of solutions to automate and streamline the process, increase
savings, and reduce costs. The inclusion of e-commerce solutions
leads to the elimination of error-prone manual processes from the
supply chain, resulting in increased profits with reduced process
costs.
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The global health care supply chain management market is segmented on
the basis of component, delivery mode, and end-users. In terms of
component, its divisions include software and hardware. The former
accounted for a major share in the global market in 2015, due to
increased adoption of the supply chain management software, and
rising applications such as customer relationship management and
execution of value chain transactions. This segment is expected to
register a prominently high CAGR during the forecast period.
In terms of delivery mode, the cloud-based management segment held a
significant share in the global health care supply chain management
market in 2015. By end-user, this market includes manufacturers,
distributors, and providers, of which the manufacturers dominated the
global market in 2015. However, the providers segment, which includes
hospitals and other service providers, is anticipated to reflect a
higher CAGR during the forecast period.
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The global market is driven by factors such as a growing focus on
supply chain management by the health care industry to effectively
reduce costs, rising efforts to deliver high-quality services on
time, increasing penetration and adoption of various components such
as software and cloud-based solutions, and technological advancements
in and automation of the processes.
On the basis of geography, the market is distributed over five
regions: North America, Europe, Asia Pacific, Latin America, and
Middle East & Africa. North America was the dominant region in
2015 owing to the presence of top pharmaceutical companies here,
along with the multiple government initiatives, and increased
implementation of technologically advanced solutions.
Some of the key players in the global healthcare supply chain
management market include Oracle Corporation, SAP SE, Infor Inc.,
McKesson Corporation, Global Healthcare Exchange (GHX), TECSYS Inc.,
LogiTag Systems Ltd., and Jump Technologies, Inc. The strategies
espoused by these companies in order to gain a stronghold in the
global market include mergers & acquisitions, geographical
expansion into new, untapped, and potential markets, and new product
launches.
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