Packaging, supply & logistics
Cloud-based solutions are transforming the healthcare supply chain, breaking down silos and enabling better data flow, efficiency and resilience.
Though concerns linger when it comes to cloud- based solutions. Security is usually at the top of that list, but much has been done to mitigate that risk. Initially, the cloud was thought to be a no-go because people perceived that they would have less control over their data, and that it would be less secure. According to the HHS Office for Civil Rights (OCR), cyber incidents in healthcare are rising. From 2018–2022, there was a 93% increase in large breaches reported to OCR (369 to 712), with a 278% increase in large breaches involving ransomware. Cyber incidents affecting hospitals and health systems have led to extended care disruptions, patient diversions to other facilities, and delayed medical procedures, all putting patient safety at risk. Fortunately, the huge tech companies running public cloud services are able to invest huge sums to promote both resilience and security, which benefits everyone.
“There are some who hold a level of apprehension knowing that the data is [not being stored on their own system], particularly in healthcare where data is very sensitive,” says Shegewi. “That is a lingering concern, as are downtime, service disruption, and data loss, but there is a move to the cloud across healthcare. There is still a lot of private cloud infrastructure, but many are moving to public cloud.”
The shift to cloud-based SCM For many observers, it will be hard to slow the move to cloud-based services in the healthcare sector. There will be some debate around whether public or private cloud infrastructure is best, and the answer
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will depend on the context. In some areas, there is a move from public to private because no one size fits all, and some healthcare providers want an extra layer of security. The sheer scale and resiliency of public cloud infrastructure, however, is a big draw. “The choice comes down to risk, probability and the addition of core competencies,” says Randall. “If a major healthcare provider has a core competency in cloud computing or cloud storage – and a case could be made for a healthcare provider to have such competencies – then it may wish to use a private cloud. If those conditions are not met, then it is likely that it would use a public provider like AWS.” Whether public or private, the fact remains that the cloud can do a lot to make supply chains better. Ultimately, it allows everyone to move in a coordinated fashion. Even in cases where there are very few suppliers, as with the IV fluids example, and there is not a lot of choice, the cloud might still help with supply and demand prediction, as well as identifying any possible constraints across the chain. It enables organisations to step back strategically and foresee risks, assess potential disruptions, and improve risk management. “There are many success stories,” says Shegewi. He gives an example: hospital networks are using predictive analytics driven via the cloud to anticipate demand and eliminate waste. Cloud-based SCM is all but inevitable in healthcare. Its benefits in terms of performance, scalability and resilience make it the best way to unlock the value of data from the many partners that make a supply chain work. The question now is when, not if, organisations will take the plunge. ●
Medical Device Developments /
www.medicaldevice-developments.com
ART STOCK CREATIVE/
Shutterstock.com
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