Domestic Sourcing Strategy Brings Balance to Health Care Provider Supply Chain

Health care systems are reevaluating and reforming their supply chains in light of the disruptions caused by the pandemic, the war in Ukraine, and other global events. After years of shifting procurement overseas in pursuit of lower pricing, health care systems have learned the risks of depending on those global supply chains susceptible to production and shipping interruptions. Initially forced to turn to domestic suppliers as an emergency, stopgap alternatives, health care providers, suppliers, and distributors are now experiencing the benefits of manufacturing and warehousing in this country and in their own communities.

These benefits of building new, domestic health care supply chains include decreasing product shipping time, promoting environmental sustainability, providing clarity into the supply chain, and meeting federal and local requirements for domestic and diverse sourcing. Above all, domestic manufacturing and warehousing are less susceptible to the type of international disruptions the industry experienced in recent times.

All stakeholders also are realizing that sourcing with domestic manufacturing, warehousing, and services supports the business health of local communities. Local sourcing reinforces bonds between hospitals and the communities they serve. 

This white paper explores the benefits of building new, domestic supply chains as well as the challenges, such as identifying qualified domestic suppliers, reevaluating the appropriate balance of cost and assurance, and agreement across the entire hospital system. Readers will understand why domestic sourcing and warehousing is better for hospitals, their staff and communities, and the delivery of high-quality patient care.

Learn how collaboration among suppliers, distributors, Vizient, and health care providers strengthens the assurance of supplies for all stakeholders and supports the delivery of high-quality patient care.

CQO Tie-in: Domestic sourcing is a supply chain strategy that balances procurement across both U.S. and international suppliers. A balanced sourcing strategy helps build supply resiliency, leading to supply access and ongoing high-quality patient care. Such a supply-sourcing approach helps avoid supply access and patient care disruptions yielding better patient and financial outcomes.


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