Healthcare Supply Chain

Abstract

Rising supply chain costs are one of the major factors that have caused rapid growth in overall healthcare spending. Supply chains in the healthcare industry are difficult to manage particularly due to their complexity and the uncertainties involved. This chapter starts with an overview of the unique challenges in healthcare supply chains, followed by an extensive review of past research in this area. We then demonstrate how inefficiency in healthcare supply chains can be improved through contract redesign, using two specific research examples: one for generic injectable drugs and the other for influenza vaccines. The chapter concludes with discussions of future research opportunities and directions.