Glocalization in procurement means finding a balance between getting healthcare supplies from global markets and keeping important items available nearby. The goal is to get benefits from global suppliers, like lower costs and more product choices, while also enjoying local suppliers’ faster delivery and quicker responses. This helps reduce the chance of supply problems.
Healthcare buying teams in the U.S. have started using this idea more after facing many supply problems. For example, during the Covid-19 pandemic, supply chains that depended a lot on global sources for things like masks and medical devices stopped working well. Hospitals and clinics ran out of supplies because shipping slowed and factories in some countries produced less. This showed the risks of relying too much on faraway suppliers and keeping very little stock.
To fix these problems, healthcare organizations are now trying to get some supplies from nearby. A 2023 McKinsey survey found that 64% of companies made their supply chains more regional, up from 44% in 2022. This change shows more people realize that local suppliers can help if there are delays, conflicts, or sudden demand increases.
At the same time, global sourcing is still important because many special medical products are only made outside the U.S. Glocalization means carefully mixing different buying options. Buyers must think about cost, speed, quality, and risk. Healthcare leaders need to build supply chains that can use both global and local suppliers depending on what is going on.
Recent world events have shown how they can hurt healthcare supply chains in the U.S. Big conflicts like the Russia-Ukraine war and problems in the Middle East have affected raw materials and shipping costs. Closing important shipping routes like the Suez Canal or places in the Red Sea delayed medical shipments. These issues added to costs and made it harder to get supplies on time.
Economic problems also pushed healthcare providers to lower costs while trying to get products faster and update products more often. Procurement teams had to balance keeping enough stock with avoiding old or unused items.
Because of these challenges, many healthcare organizations are using multisourcing more. Multisourcing means using many suppliers instead of just one. A Gartner survey found that 63% of companies invest in multisourcing to make their supply chains stronger and more flexible. This way, if one supplier fails or prices change, the impact is smaller.
Local suppliers are very important in a glocalized healthcare buying system. They can get critical products to healthcare providers faster and respond more quickly to urgent needs. Compared to global suppliers, local ones can adjust better when demands change fast or emergencies happen. This helps avoid delays in patient care.
Buying locally also helps the environment by cutting down transportation distances and lowering emissions. Many healthcare groups want to be more environmentally friendly. Using local suppliers means relying less on long air or sea shipments, which can be stopped or slowed down.
Toyota’s way of making cars is an example from outside healthcare. They use a “just in time” system with long-term partnerships with local suppliers. This method saves money and keeps supply stable. Healthcare groups can learn from this by building strong, ongoing relationships with local suppliers and not just buying as needed.
Advanced technology is important to make supply chains stronger and support glocalization in healthcare.
Artificial intelligence (AI) is being used more to predict what supplies are needed, manage inventory, and check supplier performance in real time. AI looks at past data, current trends, and other factors to make better guesses about future needs. This helps healthcare providers avoid running out or having too much stock, both of which can be costly.
For example, AI can find signs of problems early and help buyers switch suppliers or change orders before supplies run low. This is very helpful when delays can slow patient treatments.
AI chatbots and virtual helpers also manage routine communication with suppliers. They answer questions, confirm orders, and give updates automatically. This reduces work for staff and speeds up buying processes. It lets procurement teams spend more time on important decisions.
Workflow automation helps different buying tasks work together better by making ordering, billing, and supplier communication easier. Automated systems send alerts when stocks get low or if suppliers have problems. This lowers mistakes that often happen with manual buying.
Automation improves communication with suppliers, helping build stronger relationships and keeping quality high. It changes buying from just simple purchases to a more strategic process that matches long-term goals.
The COVID-19 pandemic showed how not having enough technology leaves supply chains unable to see changes and risks clearly. After the pandemic, many healthcare groups started investing more in technology like tracking systems, control centers, and planning tools. These give full visibility and help procurement teams test different problem scenarios. AI tools can simulate supplier failures or shipping delays and suggest how to handle them. This helps prepare for future problems.
Healthcare in the U.S. has special challenges because of many separate markets, complex rules, and large geography. Medical office administrators, owners, and IT managers must keep supplies flowing despite these difficulties.
Glocalization offers a practical way. By making supply chains more regional, healthcare groups can get supplies faster and spend less on transport. This is especially important because the U.S. is large and rural areas sometimes have poor infrastructure. Regional suppliers can react faster in public health emergencies or supply shortages.
Many U.S. healthcare providers work with many vendors across states or regions. Using AI-based buying software plus automation helps coordinate and share information better. This helps small and medium practices compete for good prices and supplier attention while keeping supplies safe.
One big challenge with local buying is cost. Using glocalization and keeping some extra inventory can increase overhead by up to 20%, according to experts. But, since supply chain failures lead to treatment delays, unhappy patients, and more admin work, many healthcare leaders think this cost is worth it.
Good relationships between buyers and suppliers help make healthcare supply more reliable. Moving past only buying deals leads to shared goals like better quality, new ideas, and sustainability.
During Covid-19, healthcare providers and suppliers formed partnerships quickly. For example, Boots worked with E.ON to deliver medicines, showing how teamwork can respond fast and cut waste and emissions.
In the U.S., working with local suppliers, even smaller businesses, helps build supplier strength and trust. Procurement leaders should keep communication open and hold regular performance talks to create shared benefits.
More multisourcing: Buyers use many suppliers to avoid relying on one source or place.
Regionalization: Buying more supplies from nearby to react faster and reduce risks.
Investment in technology: Tools for real-time tracking, AI forecasts, and automated workflows are used more to improve visibility and decisions.
Focus on sustainability: Cutting supply chain emissions and waste by using local suppliers and smarter logistics.
E-commerce and direct supply channels: Online ordering helps streamline buying, reduce middlemen, and speed up delivery.
Balancing global and local supply chains with glocalization gives healthcare buyers in the U.S. a way to build stronger, more reliable supply networks. Using technology like AI and automation also improves how they work and helps manage risks early. Together, these methods help hospitals, clinics, and medical offices get the supplies they need to care for patients safely and well.
Glocalization refers to balancing global sourcing with local availability of critical supplies, allowing healthcare procurement teams to enhance supply chain resilience and sustainability.
Globalization has intensified competition among companies, pushing them to seek new sources of raw materials and manage logistic chains efficiently despite rising costs and economic instability.
Procurement teams are navigating disruptions from geopolitical events, increasing material prices, and complexities of global logistics exacerbated by situations like the Russia-Ukraine war.
Multisourcing involves diversifying supply sources to mitigate risks and enhance supply chain resilience, crucial in the wake of disruptions and changing market dynamics.
Healthcare organizations are increasingly regionalizing their supply chains to reduce lead times, costs, and risks associated with global logistics disruptions.
Strong supplier relationships are essential for ensuring consistent quality and performance, facilitating better collaboration and shared benefits between buyers and suppliers.
Local suppliers can offer faster delivery and responsiveness, reducing shipping costs and enhancing efficiency, which is vital for maintaining stable healthcare supply chains.
Toyota’s ‘just in time’ production and strong local supplier relationships enhance stability and efficiency, demonstrating the efficacy of integrating local sourcing into global strategies.
Trends include increased focus on multisourcing, nearshoring, and developing collaborative relationships to enhance supply chain agility and responsiveness amidst ongoing market volatility.
A collaborative approach fosters long-term relationships that promote innovation and shared value, shifting procurement from transactional to strategic, leading to improved overall supply chain outcomes.
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