Healthcare's Chain Pain

UPS, provider of healthcare logistics and transportation services, conducted its third annual “Pain in the (Supply) Chain” survey in 2010. Taken by healthcare supply chain executives, the survey measured concerns about business and supply chain issues in the wake of healthcare reform and other industry changes.

Conducted by Harris Interactive on behalf of UPS, the survey consisted of blind, in-depth telephone interviews with senior-level decision makers at nearly 150 pharmaceutical, biotech and medical and surgical device companies.

Managing costs reigns as the number one supply chain issue in the healthcare industry for three consecutive years of the UPS survey. Coming on the heels of the recession and in the midst of healthcare reform, these are the survey's highlights:

  • Nearly two-thirds (64%) of respondents report being “very” or “extremely” concerned with managing supply chain costs, up from 55% in 2009;

  • Less than half (44%) report success in addressing the cost management issue;

  • Two-thirds of the industry (67%) expect to increase their supply chain spending in the next 18 months;

  • Among those expecting an increase in their supply chain spend, the average amount of expected increase is 18%.

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