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Freight, shipping issues regroup as post-pandemic logistics strives to drone on, recoup
by Rick Dana Barlow I
f anything, the pandemic reshaped and shifted our demands and expec- tations for freight and shipping ser-
vices – including the use of automated technologies, such as drones – and showed the strain on distribution, logistics and transportation, areas that most people took for granted until eyes were opened. Now that we’ve emerged – theoretically – from the pandemic, healthcare organi- zations – Supply Chain specifi cally – may want to determine what they’ve learned from the ordeal and how it impacted freight and shipping operations. These generally are overlooked as a granular fi nancial annoyance that can evoke con- siderable fi scal pain when least desired or expected if routinely left unchecked. Even as the pandemic subsides, fi nan- cial and operational aftershocks continue within a global supply chain. Among the bevy of maladies are fuel costs, cargo/ container ship reliability, cybersecurity, port access, international tariffs, labor issues, and rail and trucking challenges. Healthcare organizations must be ready to handle and douse them, whether inter- nally or externally through a contracted supplier or service provider.
Counting down Emily Gallo, general manager and senior vice president, Cardinal Health OptiFreight Logistics, identifies two pain points that cross her company’s radar, which are labor costs and pro- gram visibility.
“If a healthcare provider is feeling the impact of labor costs and shortages, consider looking for a freight management part- ner who can act as an extension of your team, as well as bring technological capabilities to help fi nd effi ciencies across your program,” Gallo said. “Technology also plays directly into needing visibility into your supply chain. Without having close to a real-time line of sight of ship- ments, healthcare providers don’t have the visibility they need into their freight man- agement program, holistically. By lever- aging technology to combat the lack of visibility, healthcare providers can proac- tively plan for any disruptions.” Some of the basic supply chain issues lin- ger, according to Mike DeSimpelaere, vice president, Network Operations, Cardinal Health at-Home Solutions. He oversees the company’s warehouse operations. “Overall, in this post- pandemic environment, lead times are still a bit longer than they were pre-pandemic,” he ob- served. “Ensuring there is additional inventory on hand – either on-site or at the health system – or requiring distribution partners to house more inventory are two ways that can improve lead times. Currently, most systems are pushing for 60-to-90 days of
Emily Gallo Mike DeSimpelaere 34 August 2023 • HEALTHCARE PURCHASING NEWS •
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stock for necessity items, such as gowns, gloves, masks, etc.”
Derrek Seif, Chief Strategy and Product
Offi cer, VPL, raises several challenges that the pandemic brought to the forefront, such as cost infl ation, labor issues, and even cyber- security risks, which he emphasizes is essential to address immediately. “The healthcare indus- try is a prime target for cyberattacks,” Seif warned. “This is because healthcare organizations collect and store a large amount of sensi- tive patient data, which can be used for financial gain or to disrupt healthcare operations. Two of the most common cybersecurity challenges for healthcare organizations include outdated technol- ogy that is vulnerable to cyberattacks, and third-party vendors who may not have the same level of cybersecurity as the health- care organization itself. To address these challenges, healthcare organizations need to implement a comprehensive cyberse- curity program that includes conducting regular security assessments to identify and address vulnerabilities, and carefully vetting third-party vendors to ensure that they have adequate cybersecurity measures in place. By addressing these challenges, healthcare organizations can help to protect themselves from cyberattacks and keep patient data safe.”
Derek Seif
Seif targets fuel costs as particularly prob- lematic, too. In fact, to better understand
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