Healthcare supply chain management involves all activities related to the flow of materials such as planning, execution, control, and monitoring in the healthcare business. The market for global healthcare supply chain management Market is projected to grow at a CAGR of 40.2 % during the review period of 2017 to 2023.
Seismic Shift In The Global Business Environment And Growing Complexity Of Management Are The Prime Determinants Of The Market Growth
Growing complexity of business environment such as increasing competition, high operational expenditure, increasing fragmentation of the healthcare industry, shortening product lifecycles, crumbling of trade barriers, supply risks such as political and regional uncertainty, have created antecedents for the adoption of healthcare supply chain management. The situation is compounded by transformation of the internal business environment such as growing organizational size, outsourcing, multiple vendor management, and others.
Advancements In Analytics, Machine Learning, And Big Data Is A Large Market Opportunity
Business can no longer afford to lose on the crucial parameter of the economics of scale and scope generated by optimizing its resources. The advancements in analytics, machine learning and advent of social media, and Big Data will provide a critical advantage to early adopters owing to better business forecasting.
The rise of e-commerce, development of global supply chains and the advent of social media and connected patient communities is expected to trigger greater frequency and intensity of Bullwhip effect result in stockpiling of products and shorter product lifecycles impacting production, planning, and distribution. The advent of Big Data, machine learning, tracking technology such as radio frequency identity tags (RFID) and analytics and is expected to revolutionize the industry.
Need For Business Reorganization, Lack Of Awareness, And Issues Of Integration May Hamper Market Growth
The need for business reorganization, lack of awareness, issues of integration between organizational units, concerns about data security owing to a higher outflow of information may hamper the market. The high cost of installation and maintenance, are the other constraints on the market.
To generate an accurate understanding of the global healthcare supply chain management market, the report is segregated by models, functions, delivery mode, software, technology, end users, and regions.
Based on the models, the market is segmented into make-to-stock model, build-to-order, continuous replenishment model, chain assembly and others.
Based on the functions, the market is segmented into forecasting and planning, inventory management and procurement, internal logistics and operations, warehousing and distribution, reverse and extended logistics and others.
Based on the delivery mode, the market is segmented into on-premise and web-based.
Based on the software, the market is segmented into planning tools and execution tools. The planning tools are further sub-segmented into forecasting and inventory management, supplier and vendor management, production and sales planning, others. The execution tools are further sub-segmented into warehouse management, order processing, and status tracking and others.
Based on the technology, the market is segmented into a barcode, radio frequency identification (RFID), a global positioning system (GPS), internet of things and big data, others.
Based on the end users, the market is segmented into pharmaceutical and biotech companies, logistics companies and distributors, healthcare providers and others.
Based on regions, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa.
North America led by the U.S. accounts for the most significant market share owing to the faster adoption of technology, the presence of global players and concerns over the healthcare delivery.
Europe led by Germany, U.K., and France is projected to secure the second largest market owing to the creation of the common economic market resulting in the greater cross-border flow of goods.
However, the Asia Pacific region led by China, Japan, and India is expected to be the fastest growing market. The Middle East and Africa market are anticipated to be driven by the Gulf nations of Saudi Arabia, Qatar, and UAE.
Some of the leading vendors operating in the market are SAP, McKesson, TECSYS, JDA Software, Healthcare Logistics, GHX, VUEMED, Omnicell, OnProcess Technology, Parts Source, Spend Vu, Sterling Oracle, Vizient, Inc., Manhattan Associates, and others.
December 2017 – CVS to acquire Aetna for a momentous USD 69 billion which is expected to create a global behemoth.
November 2017 – JAGGAER, to acquire BravoSolution making JAGGAER the largest vertically focused spend management solutions company.