According to a recent analysis by Emergen Research, the global healthcare supply chain management market is anticipated to reach a value of USD 3.67 billion by 2027. Identification, mitigation, and assistance in supply chain decision-making are the main goals of healthcare supply chain management (SCM). It also influences how well the services are provided. The market is also being stimulated by the emergence of cloud-based solutions.
Higher service delivery efficiency is required due to rising healthcare costs. The management of the hospital supply chain must deal with a variety of economic, environmental, and social problems. Global demand for healthcare supply chain management has increased as a result of growing knowledge of the concept. On the other side, the market is being constrained by a lack of research in healthcare supply chain management and the complexity of the industry.
Increased demand for better medical care and stricter government regulations are additional motivating factors. Technology advancements like cloud storage and the Internet of Things (IoT) have increased demand for healthcare supply chain management. Hospital supply chains can have divergent goals, which can lead to market fragmentation and inefficiency. The objective of the hospital is to purchase a high-quality product that it can afford, whereas the supply chain management providers may choose to employ a product since they were trained with it.
The widespread implementation of the GS1 system of standards in the healthcare sector, the advent of cloud-based solutions, the decrease of operational expenses due to increased efficacy, and an increase in overall profitability are the main reasons propelling the growth of this market. However, it is anticipated that a certain amount of market development would be constrained by the high implementation costs of supply chain management software.
Systems for managing the supply chain in the healthcare industry come in two parts: software and hardware. Since more people are making purchases online, business intelligence is getting better, and people are becoming more interested in environmentally responsible logistics, software systems are far more acceptable than hardware systems. This is supposed to accelerate market expansion for healthcare supply chain management during the anticipated period.
The healthcare supply chain management market is divided into on-premise and cloud-based segments depending on delivery method. Despite having the greatest market share, the cloud-based sector is anticipated to grow at the fastest rate throughout the projection period. Healthcare businesses can communicate and integrate data from various locations using cloud-based systems, which also have low installation and maintenance expenses. These benefits are fueling this segment’s market expansion.
Key Highlights of Report:
In order to diversify its offering of goods and services, ABS Vaccines was acquired by Sterling Healthcare Logistics in December 2020. The acquisition would support Sterling’s goal of offering a creative solution that would boost productivity in the healthcare industry.
Hospitals can keep an eye on the price of goods and services while the procure-to-pay process is made simple by the procurement software. This kind of software eliminates time-consuming activities, lowers costs, and improves vendor experience all at the same time.
During the projected period, the segment for cloud-based delivery modes is anticipated to have the highest CAGR. Cloud enables the sharing and fusion of data from various sources. Additionally, it lowers the expense of installation and upkeep.
Due to the presence of major market players and the deployment of cutting-edge technologies there, North America held the biggest market share in 2019. Due to the presence of a developed healthcare system in the area, the U.S. commands a significant market share in the area.
SAP SE, Oracle, Tecsys Inc., Cardinal Health, Epicor, Infor, Global Healthcare Exchange, McKesson Corporation, Manhattan Associates, and Cerner are some of the major market players.
For the purpose of this report, Emergen Research has segmented the global healthcare supply chain management market based on component, delivery mode, end-user, and region as follows:
Component Outlook (Revenue, USD Billion; 2017–2027)
- Purchasing Management Software
- Procurement software
- Strategic Sourcing Software
- Supply Management Software
- Capital Purchasing Software
- Transportation Management Software
- Inventory Management Software
- Warehouse Management Software
- Implant Management Software
- Order Management Software
- Consignment Management Software
- Tissue Management Software
- Purchasing Management Software
- Barcodes & Barcode Scanners
- RFID Tags & Readers
Delivery Mode Outlook (Revenue, USD Billion; 2017–2027)
- On-premises Delivery
- Cloud-based Delivery
End-user Outlook (Revenue, USD Billion; 2017–2027)