Friday, 21 April 2017

Operations and Supply Chain Management (SCM)

The focal operation perspective shows supply chain management as a way of managing operations the form supply and the operations that form demand. Supply chain management needs to find a balance in order to meet the requirements of the customer and the operations resources. Balance is achieved through coordinating the deliveries and services and products from the supply chain. This requires time to supply the quantity and the quality of the items or services that are demanded. The purchasing function and operation and suppliers are all used. In healthcare a simplified supply chain could be used, focusing on the flow of information and physical flows and realising that the right information is required so as not to distort the chain.

When integrating support activities the healthcare industry needs to consider legal frameworks and the resources of the supply chain parties. A growing trend is for companies to use shared services that provide supporting functions for lots of units that are consolidated into a single provider.


In the UK the NHS formed shared services as a separate business in 2003. The new service provided automated invoicing services to hospitals. They now also manage the payroll and procurement. They have also considered outsourcing some activities to other countries such as India in order to reduce their own costs. 

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