On Aug. 16, Premier’s new 2024 Supply Chain Resiliency Report was released. According to a blog post on the organization’s website, there are several key takeaways from the report to note.
The largest operational and financial challenge is ongoing inflation and cost pressures for labor and products (47% and 45%, respectively). Additionally, 65% of provider respondents said that costs or financial pressures “are the most significant barrier to achieving supply chain resiliency”
Almost 80% of providers and 84% of suppliers “expect supply chain challenges to worsen or remain the same – an increase from the 75% of provider respondents asked this same question in 2023.”
“Over half of suppliers have experienced supply chain operations impacts due to geopolitical issues and severe weather events in 2023,” the blog post adds. “And nearly 85% expect regulatory policy changes to affect their 2024 supply chain strategies.”
Further, “Sixty-seven percent of providers said their teams are spending 10+ hours per week mitigating supply chain challenges and shortages. Nearly 40% have had to cancel or reschedule cases at least quarterly in 2023 due to product shortages.”
The blog also states that for a health system of medium size, the data show supply shortages on average increase the cost of care by $3.5 million and lead to $350,000 in lost revenue per year.
As for digital initiatives, 43% of providers said in the report that they “are leveraging technology and data around supply availability.” This is an 8% increase from last year’s survey.
Indeed, “37% of suppliers are prioritizing technology investments in 2024, with many respondents saying their organization has been making investments in technology capabilities for a decade,” the blog mentions.
Additionally, more than half of suppliers reported “moderately or significantly increasing investments in domestic manufacturing” and “nearly 90% of providers say domestic manufacturing is an important component of their organization’s resiliency strategy.”
And finally, other supplier priorities for include “improving demand forecasting, cybersecurity enhancements, diversifying Tier 2/3 suppliers and increased collaboration with supply chain stakeholders.”
