Exclusive Insight into Healthcare Supply
Chain Operations in the Middle East
7 Senior Healthcare SCM and Operation experts...
What’s in this report?
to Enterprise Risk Management in
the Middle East
As the demand for healthcare services increasingly...
Meet the experts we asked….
to Enterprise Risk Management in
the Middle East
Dr. Reem Osman, CEO, Saudi German Hospital Du...
Dr. Reem Osman, CEO, Saudi German Hospital Dubai, UAE to Enterprise
Risk Management in the Middle East
Looking ahead, what...
Jimmy Johnson, Director of Materials Management, Johns Hopkins
Medicine Bayview Medical Center, USA to Enterprise Risk Man...
Zayed Al Dahema, Director of Supply Chain Management, Sheikh Khalifa
Medical City, UAE to Enterprise Risk Management in th...
Nipit Piravej, CEO, Bangkok Healthcare, Thailand
Enterprise Risk Management in the Middle EastLooking ahead, what do you s...
Clendon P. Raines, Senior Director of Supply Chain, International Medical
Center, Jeddah, KSA Enterprise Risk Management i...
Karima Ajhar Hakim, Procurement and Materials Director, Bellevue
Medical Center, Lebanon Enterprise Risk Management in the...
Ahsan S. Razzaq, General Manager – Corporate Supply Chain & QHSE,
Olayan Financing Company, Healthcare Distributors: ENAYA...
How would you respond?
to Enterprise Risk Management in
the Middle East
Join the conversation at the premier Healthcare SC...
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Healthcare Supply Chain Strategies Report

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Exclusive insights into Healthcare Supply Chain operations in the Middle East

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Healthcare Supply Chain Strategies Report

  1. 1. Exclusive Insight into Healthcare Supply Chain Operations in the Middle East 7 Senior Healthcare SCM and Operation experts share their insight into building integrated supply chain functions in healthcare facilities across the Middle East enterpriseriskmanagement.iirme.com
  2. 2. What’s in this report? to Enterprise Risk Management in the Middle East As the demand for healthcare services increasingly grows and new developments are launched in the region, supply chain capabilities are being pushed to the limit and SCM practitioners are expected to be cost-efficient while ensuring highest quality of care. Supply chain functions must be resilient and flexible to accommodate the growing market, government regulations and demands from internal and external stakeholders. We asked 7 senior healthcare SCM professionals about their experiences in leading and developing supply chain functions in their healthcare organisations. In this report you’ll get to learn what their pressing challenges are, how they view the growth in the sector, what strategies they use to achieve supply chain efficiencies whilst ensuring quality care, and also hear about the successful tools they use to develop a lean SCM model. It’s full of insightful tips and strategies on how to enhance and develop your healthcare supply chain function. I hope you find their opinions both insightful and valuable to you. You can also meet them personally at the Healthcare Supply Chain Strategies, taking place on 6 – 9 April at the Address Hotel Dubai Mall. You can find more information about the event here on the website. Hoda Abdelhay Summit Director Healthcare Supply Chain Strategies +971 (0)4 407 2668 hoda.abdelhay@iirme.com …….……………………………………………………………………………………………………………………. healthcaresupplychain.iirme.com
  3. 3. Meet the experts we asked…. to Enterprise Risk Management in the Middle East Dr. Reem Osman, CEO, Saudi German Hospital Dubai, UAE Dr. Reem Osman has over 16 years' experience in the healthcare industry, and she is renowned for her innovative ideas and approaches for the integrated health care delivery and development of Dubai's Healthcare sector by supporting Community based doctors and creating a conducive environment for healthcare practice. Jimmy Johnson, Director of Materials Management, Johns Hopkins Medicine Bayview Medical Center, USA Jimmy's responsibilities includes directing SCM operations including Materials, Distribution, Vendor & Inventory Management, SAP IT, and Purchasing, towards supporting the mission and values of the organization. He is teaching a SCM Program at King Faisal Specialist Hospital, Dhahran Medical Center, Al Hasa Hospital, Corniche Hospital, Tawam Hospital, and Al Rahba Hospital. Zayed Al Dahema, Director of Supply Chain Management, Sheikh Khalifa Medical City, UAE Zayed is the Director of a strong Supply Chain Management team of 83 members including two departments and 8 Senior assigned for different teams. He graduated in Business Administration from the Higher Colleges of Technology – Abu Dhabi. Nipit Piravej, CEO, Bangkok Healthcare, Thailand Dr. Piravej was the Chief Corporate Officer (CCO) at Bangkok Chain Hospital in- charge of corporate duties and development of the company's new premium care hospital project, the World Medical Center (WMC), where he became CEO. His experience includes initiating strategic partnership models between insurers and key healthcare value creators, championed the application of medical management to improve patient outcome, expanded the use of information and communication technology to enhance services and patient safety. Clendon P. Raines, Senior Director of Supply Chain, International Medical Center, Jeddah, KSA Clendon received his MS in Logistics Management from Florida Institute of Technology. In his present role, he is responsible for the hospital’s supply chain operations including Purchasing, Logistics/Warehouse, Distribution, and healthcare processes that involve planning, forecasting and value analysis. He has over 30 years of materials, operations and supervisory experience in national and global positions. Karima Ajhar Hakim, Procurement and Materials Director, Bellevue Medical Center, Lebanon In her current role, Karima provides key input into identifying and tracking measurable criteria to support the hospital’s business plan, goals in development and execution of a comprehensive global SCM logistics network. She’s responsible for system integration, purchase optimization, inventory control, & demand planning to achieve optimal profitability while meeting the hospital’s standards of care and needs. Ahsan S. Razzaq, General Manager – Corporate Supply Chain & QHSE, Olayan Financing Company, Healthcare Distributors: ENAYAH, Arabian Health Care Supply Company (AHCSC), Baxter, KSA Ahsan’s current responsibilities include providing supply chain operational excellence support, supporting implementation of Quality, Health & Safety and Environment (QHSE) management systems for all Olayan group operating companies. …….……………………………………………………………………………………………………………………. healthcaresupplychain.iirme.com
  4. 4. Dr. Reem Osman, CEO, Saudi German Hospital Dubai, UAE to Enterprise Risk Management in the Middle East Looking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Increasing Regulations, Reforms and legislation in healthcare Sector 2) Product Security and Product spoilage 3) Cost Management How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? Emphasis on Global Market / Investment in New technology / New ways of doing business call for new supply chain models / More emphasis on cost management / More Importance for the Healthcare Logistic enabling a high degree of efficiency / Increased use of new distribution channels / Alignment between Regulatory compliance and Company Goals / Improving lead time (product delivery) / Deliver premium high quality patient service on time / Improving Safety (choosing better quality with better price) How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Compliance of new regulation reforms like DHA and MOH and seeking solutions from third party providers / Improving organizational design by relying on relational contracting / Design Award systems to reward what you want done / Move toward a best value approach (toward a focus on total value added for customers) / Invest strategically in the workforce …….……………………………………………………………………………………………………………………. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Global Expansion 2) Increased focus on operational flexibility 3) Planned investment in new technology 4) Supply chains are equipped to handle the biologic influx Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? It’s an opportunity to interact with multiple stakeholders in one place to create strategic partnerships for a better collaborative supply chain…and to learn best practice to build a lean material management model, integrate SCM processes and achieve efficiencies throughout the chain. The event will also allow you to meet with senior experts in healthcare supply chain and operations to discuss the industry's challenges and brain storm solutions healthcaresupplychain.iirme.com
  5. 5. Jimmy Johnson, Director of Materials Management, Johns Hopkins Medicine Bayview Medical Center, USA to Enterprise Risk Management in the Middle EastLooking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Technology Cost – As technologies (Robots, RFID, ERP system), how can hospitals maintain a minimal cost structure that will not erode their efforts for research, patient care, and infrastructure investments 2) Agile / Flexible Supply Chains – With the varying degrees of demand (Patient volume, products, and regulations) can our supply chains respond to the challenges, as a seamless operation, without causing major disruptions. 3) Talent – Having qualified, educated, and talented leaders in the pipeline to help move / push the supply chain towards excellence in service, products, patient care. How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? This depends on how flexible the supply chain can respond to the market. If the supply chain is agile, it will not have any challenges with supporting the growth. However, if the supply chain is not flexible / agile, the supply chain will not be able to support it’s customers due to bottle necks, inferior products, and inconsistent deliveries. …….……………………………………………………………………………………………………………………. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Within the US market, healthcare is a two prong approach, at the regulatory level, healthcare is regulated on how much hospital will receive from our state & local governments to provide patient care, in other words, how much reimbursement the hospital will receive. The second approach includes our free market; This is where hospitals are free to work with any supplier, distributor, or GPO to save cost. In our market, there are no exclusive agents that we have to go through for products, thus making our prices competitive among the various distributors, suppliers, and manufactures. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Supply Chain Education 2) Collaboration among hospitals, vendors, and manufacturers 3) Investment in “Smart” Technology Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? It’s important for supply chain professionals to attend seminars like this because it gives them the opportunity to collaborate with their peers, understand new developments related to (regulatory, technology, and products), and to hear great speakers that have the experience, education, and the skills to assist an organization supply chain to be effective. healthcaresupplychain.iirme.com
  6. 6. Zayed Al Dahema, Director of Supply Chain Management, Sheikh Khalifa Medical City, UAE to Enterprise Risk Management in the Middle East Looking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Lead time 2) Stock availability 3) Demand planning & forecasting How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? There are many challenges that face the health sector and one of these challenges is supply chain & logistics. Planning & forecasting should be more data driven and work as partners with our suppliers &hospitals. There will be new sub specialties and more demand for general products. Therefore, we would like to see more international pharmaceutical / consumables manufacturers open in the UAE. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Through focus on CRM (customer relationship management), & SRM (Supplier Relationship Management ), we improve our systems and implement new strategies to open communication with distributors, agents, and Regulators, to enhance our service to penitents. …….……………………………………………………………………………………………………………………. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Supply Chain Education 2) Collaboration among hospitals, vendors, and manufacturers 3) Investment in “Smart” Technology Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? For the past few years ago, we noted the significant growth and high demand in the healthcare sector. Therefore, we need to implement effective supply chain strategies to reach a higher level of quality in service. healthcaresupplychain.iirme.com
  7. 7. Nipit Piravej, CEO, Bangkok Healthcare, Thailand Enterprise Risk Management in the Middle EastLooking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Rising demand for healthcare services, increasing expectation on quality, while resources remain finite and grow at a much slower pace. This will put greater pressure on the cost side of the equation, including the health supply chain. Inappropriate control of the supply side in attempt to control costs, can compromise service availability, health outcome and patient satisfaction. 2) Healthcare will continue to be more complex, specialized and above all fragmented with increasing players and micro-segmentation, many of which may operate in isolation. This will create potential negative impacts including poor information flow across the system, difficulty in partnership across the value chain as well as inefficient and ineffective care systems. 3) The rise of life style related health risks and chronic medical conditions will make the existing acute care based health delivery system ineffective and even obsolete for managing significant number of medical conditions. Healthcare supply chain must be given a seat at the table for long term national healthcare planning. How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? All GCC countries are moving toward universal health insurance model to expand access to care. This can result in a system where providers, suppliers and payers are split with consumers trapped in the middle. Zero sum game type of encounter among stakeholders to maximize their own financial incentives will most likely cause unsatisfactory performance of the whole system. …….……………………………………………………………………………………………………………………. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? As a private healthcare player, we have tried several initiatives in collaboration with a number of strategic partners in healthcare supply chain including bulge purchasing, inventory management outsourcing and strategic medical supply planning and management. There are opportunities to apply more innovative partnership models but building up mutual trust and positive-sum engagement attitude are important pre-requisites. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Treat health supply chain players as strategic partners, give them seats at the table for strategic dialogue and planning, provide win-win incentives to improve availability, quality and efficiency, not just offering lowest price 2) Standardize information and ensure good information flow across the value chain to enable seamless integration and coordination 3) Adopt information and communication as well as automation technologies to streamline the whole supply chain Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? With relatively young healthcare systems and favorable geographic and socioeconomic factors, GCC countries have a good opportunity to leapfrog in their healthcare supply chain development to create a patient centric value-based integrated health supply chain that will deliver long term efficiency for achieving sustainable healthcare and a win-win play field for all value creators healthcaresupplychain.iirme.com
  8. 8. Clendon P. Raines, Senior Director of Supply Chain, International Medical Center, Jeddah, KSA Enterprise Risk Management in the Middle East Looking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Increased regulatory oversight – efforts to mitigate or minimize the insurgency of counterfeit/contaminated pharmaceuticals that have found their way into the healthcare SC. 2) Increasing cost/price of all healthcare related goods and services – driven by competition – outsourcing and rise in research and development costs 3) Information Integrity – more hospitals are seeking transparency and sharing of pricing agreements between manufacturers and distributors How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? I think we will see decrease in availability of like products due to high demand created by addition of new hospitals or additions to existing ones. Prices/cost of goods and services will go continue to rise as the ratio of supply and demand move in conversely with this trend – we could see longer lead times tacked on to our expected delivery times – longer periods of stock out situations. …….……………………………………………………………………………………………………………………. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Members of the SC team work with our suppliers on a regular basis to address service-related issues – working toward transparency on what our true cost should be – who shoulders the cost for inventory? Can we work toward vendor-managed inventory to minimize our logistical footprint in the hospital? How can we improve delivery schedules to minimize bulk receipt of majority of fast-moving supplies We are working with our major suppliers on accessing shared networks to view inventory and move toward electronic ordering as opposed to manual process of paper POs, faxing and telephone orders. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Constantly analyse inventory trends and adjust accordingly 2) Reduce redundancies in the supply chain – remove unnecessary steps in procuring, receiving, and delivering products 3) Seek strategic partnerships with your suppliers – show commitment – expect great results Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? I am speaking at this conference in hopes of sharing my knowledge and experiences in running a viable supply chain operation. I recommend other SC professionals to attend in efforts to network and perhaps learn best practices – share practical success stories and determine alternative solutions to similar problems and issues. healthcaresupplychain.iirme.com
  9. 9. Karima Ajhar Hakim, Procurement and Materials Director, Bellevue Medical Center, Lebanon Enterprise Risk Management in the Middle East Looking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Escalating supply chain costs 2) Increase in the demand for Physician Preference Items PPI 3) Role conversion of the supply chain department in a hospital from a transactional to a strategic function How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? The supply chain is positioned to play a critical role in the transformation that health care needs to make, in order to provide quality care in a sustainable and affordable manner. This is done with better visibility to data; greater integration with clinical and financial operations, improved business processes amongst partners thus allowing the supply chain to address the challenges facing the health care industry. Cloud based technologies that foster collaboration are being deployed in health care relationships and as much as more supply chain practitioners recognize the interdependent nature of the supply chain, suppliers are to be seen as partners and not adversaries thus allowing manufacturers to assist their customers to lower the costs of the commodities. …….……………………………………………………………………………………………………………………. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Reliance on third party payers logistics for reimbursement, regulatory compliance, new customer demand, increase the standard of health care provision; all of which are reasons to allow the health care supply chain to balance a number of priorities related to capture the business growth opportunities in the market. Supply chain management involves managing a connected series of activities involved in the planning, coordinating, and auditing the movement of materials and data. For this to occur, material, financial and information flows are managed as decisions are made at the strategic, tactical and operational levels of the supply chain. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Efficient supply chain is to be driven by value and powered by information. 2) Role conversion of the supply chain department in a hospital from a transactional to a strategic function 3) Align procurement strategy with reimbursement realities and recognize that the actions of payers have a direct impact on the supply chain Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? It is evident that health care supply chain is a highly evolving sector and the summit will be an ideal platform to have practitioners within this field come together, share successes and concerns. The summit can also provide opportunities to discuss challenges and discuss best practices. We would be able to identify various programs and initiatives that can be implemented but moreover what restructuring is needed to sustain supply chain efficiency based on tangible experiences within the MENA countries. healthcaresupplychain.iirme.com
  10. 10. Ahsan S. Razzaq, General Manager – Corporate Supply Chain & QHSE, Olayan Financing Company, Healthcare Distributors: ENAYAH, Arabian Health Care Supply Company (AHCSC), Baxter, KSAEnterprise Risk Management in the Middle EastLooking ahead, what do you see as being the three main challenges facing the healthcare supply chain in the region over the next few years and why? 1) Infrastructure – cold chain management remains a challenge. Lack of control over the supply chain elements coupled with lack of infrastructure such as temperature control warehouses, boxes, fleet at the critical parts of the supply chain are the major concerns 2) People – culture needs to be developed. Training and rewards and recognition needs to be linked to health care supply chain 3) Processes need to be changed to cater for cold chain requirements as a first priority How do you think the increasing growth in the healthcare sector will affect strategic supply chain management in the region? It will help supply chain to get more effective and efficient. Relevant companies will need to become more competitive to gain the market share by reducing supply chain costs such as expiries and damages to be able to succeed …….……………………………………………………………………………………………………………………. How does your organization work with other key stakeholders (regulatory bodies, hospitals, local distributors, suppliers and manufacturers) to drive supply chain efficiencies and save costs? Having joint teams that focus on seamless management of healthcare supply chain. We keep in focus the end user and adopt what is the most effective and efficient way to deliver to the end user. We then assign responsibilities to each stakeholder within that process. What are your top three tips for improving efficiencies in healthcare supply chain operations? 1) Have written supply chain policies and procedures managed through Quality Management System 2) Train people down to the lowest level in the organization on these procedures 3) Link the rewards of individuals to adherence to these procedures and to continual improvement Why are you speaking at the Healthcare Supply Chain Strategies Summit and why would you recommend that your peers attend? It is our duty to ensure all patients get what they need to save their lives in the right way and at the right time. There is no competition in this. Hence, I am attending to share what we do at Olayan towards this goal and to learn from others what they do and improve. Furthermore, this even is an excellent opportunity to network and get acquainted to with people in our field. healthcaresupplychain.iirme.com
  11. 11. How would you respond? to Enterprise Risk Management in the Middle East Join the conversation at the premier Healthcare SCM event in the Middle East. Attend the Healthcare Supply Chain Strategies Summit taking place on 6 – 9 April at the Address Hotel Dubai Mall and benefit from the collective experience of 20+ regional and international healthcare supply chain and operation experts. See the full agenda today, call Pradeep on +971 4 407 2790, or email pradeep.fernandes@iirme.com …….……………………………………………………………………………………………………………………. If your solutions and advice can help address the challenges faced by regional hospitals and healthcare facilities, we’d like to hear from you. We offer tailored packages to promote your brand and position your company as the service provider of choice. For more information contact Georgina Hill on +971 (0)4 407 2754 or sponsorship@iirme.com healthcaresupplychain.iirme.com
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