Envisioning the Healthcare Supply Chain through Innovation and Sustainability

According to Future Health Index India 2023 report, 99% of them are taking some form of initiative to address environmental sustainability. However, Indian healthcare leaders also face challenges in implementing their environmental sustainability initiatives. Some of the most frequently cited challenges include the lack of specific regulation (40%), lack of time (30%), implementation strategies (29%), appropriate technology (29%) and staff interest (29%). That said, if healthcare were a country, it would be the world’s fifth-largest emitter of CO₂, accounting for over 4% of global emissions – more than the aviation or shipping sectors.

In addition to driving sustainability, there is a need to change the way we plan our supply chain. Supply chain management technology must integrate the best of Artificial Intelligence, Data Science and Computer Vision to accurately track the supply chain and present indications of when and where things are likely to go wrong. As different components have different lead times and consumption patterns, use of technology will forewarn managers of upcoming challenges and help them take remedial measures.

Seamless integration of medical device data is a cornerstone for advanced healthcare analytics. Patient monitors, anesthesia machines, ventilators, and other diagnostic devices all put up a treasure of information about patients. The connection to powerful analytics platforms allows providers to surface in real-time insights into a patient’s physiological status and quickly identify potential complications to intervene in a timely manner. It is also a proactive approach that helps in avoiding adverse events, and it also opens opportunities to deliver the best possible care in a more personalised manner. Additionally, the ability to analyse historical data from the same devices for trends and patterns offers a chance to enhance evidence-based protocols and best practices.

None of the above will account for much if we don’t improve the environmental performance of our suppliers even as we look to deliver better care to patients. Development or Carbon Disclosure Project) in advancing climate action and providing opportunities for decarbonization are some of the other steps that can be taken. In 2021, Philips provided guidance to 89% of its strategic suppliers on achieving cost effective carbon reductions. Today, 40% of its suppliers (based on spend) are now committed to science-based targets for CO₂ reduction.

Philips also partners with suppliers to transition to renewable electricity. With supply chains spanning the globe, Philips is one of 19 global brands signed up to the coZEV initiative’s 2040 zero-carbon ocean shipping ambition. Governments too can stimulate green approaches to supply chain operations through clear regulations and the setting of clear standards, rules, and guidelines to ensure decarbonization across all players. Increased involvement of the public sector and regulators can lead to better ESG performance and reporting, including purchase decisions.

Trade organizations, including those in healthcare, can also play a key role in harmonizing sustainable public procurement practices. Research partners can advocate supplier sustainability, making decarbonization ‘the new ‘normal’ for companies active in the extended supply chain for the healthcare industry.

Ultimately, the goal should be to progress towards a circular economy. In circular procurement, the right choices are taken early in the product creation process so that materials and components are suitable for refurbishment and re-use at the end of-life. If done right, the move towards a circular economy through sustainable means will have a disproportionately positive impact on the health and well-being of patients.