Health care is one of the notable, rapidly growing industries globally. It includes various segments such as medical devices, pharmaceuticals, information technology, and services, all of which are developing at a fast pace. Today, the health care industry is under immense pressure to deliver high-quality medical care owing to an increasing demand for better facilities and services from patients around the world. But it is also rife with the omnipresent threat of increasingly expensive delivery of quality services.
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Although constant efforts are being taken by health care providers to reduce costs by eliminating waste and improving their operations, often the chief aspect of supply chain, which is responsible for an estimated one-third of all the operating costs, is missed out. The health care supply chain involves three main groups: producers (manufacturing companies), purchasers (wholesalers and distributors), and providers (hospitals, pharmacies, and clinics). Currently, the supply chain is facing major problems in terms of delivering services on time, because the fact that every part of it works independently, and not as a collective system, creates a misaligned network. This has led to a gamut of solutions to automate and streamline the process, increase savings, and reduce costs. The inclusion of e-commerce solutions leads to the elimination of error-prone manual processes from the supply chain, resulting in increased profits with reduced process costs.
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The global health care supply chain management market is segmented on the basis of component, delivery mode, and end-users. In terms of component, its divisions include software and hardware. The former accounted for a major share in the global market in 2015, due to increased adoption of the supply chain management software, and rising applications such as customer relationship management and execution of value chain transactions. This segment is expected to register a prominently high CAGR during the forecast period.
In terms of delivery mode, the cloud-based management segment held a significant share in the global health care supply chain management market in 2015. By end-user, this market includes manufacturers, distributors, and providers, of which the manufacturers dominated the global market in 2015. However, the providers segment, which includes hospitals and other service providers, is anticipated to reflect a higher CAGR during the forecast period.
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The global market is driven by factors such as a growing focus on supply chain management by the health care industry to effectively reduce costs, rising efforts to deliver high-quality services on time, increasing penetration and adoption of various components such as software and cloud-based solutions, and technological advancements in and automation of the processes.
On the basis of geography, the market is distributed over five regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America was the dominant region in 2015 owing to the presence of top pharmaceutical companies here, along with the multiple government initiatives, and increased implementation of technologically advanced solutions.
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Some of the key players in the global healthcare supply chain management market include Oracle Corporation, SAP SE, Infor Inc., McKesson Corporation, Global Healthcare Exchange (GHX), TECSYS Inc., LogiTag Systems Ltd., and Jump Technologies, Inc. The strategies espoused by these companies in order to gain a stronghold in the global market include mergers & acquisitions, geographical expansion into new, untapped, and potential markets, and new product launches.
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