I submitted the following research proposal to the Anglia Ruskin University Cambridge, which was accepted and is now my basis for the MPhil/ PhD. Almost after one year into my research, it is still very helpful to look back to the initial proposal to remind myself of important research questions and the purpose.
Working Title
Best practices for managing procurement and supply
in the healthcare sector
Proposed area of
Research
The
suggested research is intended to identify, evaluate and apply new approaches
and best practices in healthcare logistics management. Differentiating between
healthcare providers, such as hospitals, and healthcare equipment manufacturers
is a precondition to precisely define the scope of the proposed research, which
will be limited to medical appliances suppliers, such as Siemens AG,
General Electrics and Philips.
Context of research
Conventional
supply chain practices like lean manufacturing and outsourcing in healthcare
manufacturing have been regarded as difficult to apply to the healthcare
sector, since healthcare manufacturing differs from other manufacturing
industries (e.g. automotive and high-tech industries) in three main categories:
a)
Demand forecasting is more complex than for mass-produced
commodity or B2C products, since these cost-intensive medical supplies
acquisitions are infrequent or even one time purchases.
b)
Manufacturing medical equipment requires a higher amount of
specialist, integrative knowledge from several professional backgrounds
(Huebner & Elmhorst, 2008:18) because the end-user, i.e. patient, can be
exposed to a fatal health risk deriving from x-rays
c)
There is a conflict between quality-based differentiation
strategy and cost-driven strategy for medical supplies, which inarguably should
not sacrifice quality for cost-savings (McKone-Sweet et al., 2005).
Therefore,
it has to be carefully analyzed why best practices from other industries in SCM
fail for the healthcare sector and how this respective industry can become more
competitive in its logistics management using adaptive models and strategies.
Aim and Focus of
the study
The
focus of the research will be placed upon four main concepts in supply chain
management in healthcare: procurement, just-in-time management, lean
manufacturing and outsourcing.
Examining
those four areas in respect to the healthcare industry, with all opportunities
and pitfalls they may offer, will help to:
a)
Identify areas of operational improvement in SCM.
b)
Develop strategies that lead healthcare suppliers to embrace
available tools and techniques to alter existing, outdated SCM practices.
c)
Benchmark the medical supply manufacturers against other
manufacturing companies in terms of material logistics, waste-reduction,
efficiency, etc.
Relevance
Healthcare
equipment manufacturing is a global industry of multi-billion dollar scope that
has long been overlooked in terms of efficient supply chain management due to
its unique place in manufacturing. Secondary literature and revolutionary
discoveries in operational theories often fail to adapt their models these
specialized industries. Principles in outsourcing, lean manufacturing for
instance, have proven to pose more questions and restraints in the healthcare
sector and have to be made accessible to healthcare suppliers in order to
provide them with incentives for switching to new best practices in supply
chain management.
Rationale
My work
experience in the SCM and Process Quality Department of Healthcare division at
Siemens AG has spurred this interest and given me motivation for further
research in this precise area. There, I
experienced first hand that particular SCM processes were either inefficient or
outdated while others were not suitable for healthcare manufacturing.
Disorganized inventory management, long lead times and critical quality
problems due to outsourcing issues have unveiled a potential for change, which
is not only advantageous for the company, but also for the suppliers and
customer-relationships.
Research
Methodology
The
research for the thesis will be twofold:
a)
Existing literature will build a foundation and in-depth
knowledge of existing theories in the field of general and healthcare-specific supply
chain management.
b)
Expert talks and interviews will build the bridge from the
theoretical, academic frameworks to the practical application within the
manufacturing businesses. Therefore, a series of conversations with both with
the head office and middle management will be scheduled to find out about
motivations, aversions and opinions about new practices in supply chain
management, to which extent particular strategies have already been applied and
how these are perceived by employees, customers and other stakeholders. These
empirical studies will be undertaken in three of the major healthcare
suppliers, Siemens AG, Philips and General Electrics in order to research
commonalities, patterns and qualitatively valuable bases of comparison.
Indicative References
Foxx, W.K.,
Bunn, M.D., McCay, V. (2009), “Outsourcing Services in the Healthcare Sector”, Journal of Medical Marketing: Device,
Diagnostic and Pharmacetical Marketing 2009, Vol. 41 Iss 9.
Gattorna, J. (1998) Strategic supply
chain alignment: best practice in supply chain management, Gower Publishing
Ltd., Hampshire, England.
Gilley, K.M.,
and Rasheed, A. (2000) “Making More by
Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance”, Journal of Management, August 2000,Vol. 26 no. 4, pp. 763-790.
Huebner, U., Elmhorst, M.A., (2008) eBusiness in
Healthcare – From eProcurement to Supply Chain Management, Springer-Verlag,
London.
Hugos, M.H. (2006) Essentials of Supply Chain Management, 2nd
ed., John Wiley & Sons Inc, Hoboken, New Jersey.
Kumar, A., Ozdamar, L. and Peng Ng C., (2005)
"Procurement performance measurement system in the health care
industry", International Journal of
Health Care Quality Assurance, Vol. 18 Iss: 2, pp.152 - 166
Kollberg, B., Dahlgaard, J.J., Brehmer, P.O.,
(2006) "Measuring lean initiatives in health care services: issues and
findings", International Journal of Productivity and Performance
Management, Vol. 56 Iss. 1, pp.7 – 24.
McKone-Sweet, K.E., Hamilton, P., Willis, S.B. (2005) The
Ailing Healthcare Supply Chain: A Prescription for Change, Journal of Supply
Chain Management; Winter 2005; 41, 1; ABI/INFORM Complete, pp.4.
Rivard-Royer, R.H., Landry, S., Beaulieu, M. (2002) Hybrid
Stockless – A Case Study, International Journal or Operations and Production
Management, Vol. 22, Iss. 4., pp. 412 -424.
Schiederjans, M.J, Schiederjans, A.M., Schniederjans, D.G.,
(2005) Outsourcing and Insourcing in an
International Context, ME Sharpe Inc, New York.
Smith, A.D., and Correa, J., (2005)
"Value-added benefits of technology: E-procurement and e-commerce related
to the health care industry", International
Journal of Health Care Quality Assurance, Vol. 18 Iss: 6, pp.458 – 473.