Ramsay Health Care urges industry-wide supply chain platform for real-time, end-to-end visibility

The COVID-19 pandemic underscored the critical importance of robust healthcare supply chains and the need for comprehensive planning to address a variety of scenarios. However, as the world moves beyond the pandemic, the healthcare ecosystem continues to grapple with a series of complex challenges that strain the resilience of supply chains. So, how can the medtech sector, hospital procurement teams and logistics providers effectively collaborate to navigate these obstacles?

This pressing question was at the heart of a panel session at the recent Medical Technology Association of Australia (MTAA) Conference moderated by Pravin Siriwardena, Policy Manager at MTAA. The discussion featured insights from Chris Sullivan, Global Chief Supply Officer at Ramsay Health Care, Shane McCormack, Head of Supply Chain & Commercial Operations at Cardinal Health, and Michael Gardner, Vice President Life Sciences & Healthcare, DHL Supply Chain.

According to McCormack, a recent MTAA member survey highlighted several significant hurdles for the medtech sector, including increased costs, extended lead times, inventory pressures, and mounting sustainability demands.

Gardner provided a snapshot of the logistics turmoil during the pandemic. “We found ourselves with less than 1% of available property in the market, with a wave of inventory arriving that created major storage challenges,” he recalled. “This also drove lease costs sky-high, and despite some easing in space constraints, lease prices will never revert to pre-pandemic levels.”

He added that labor market volatility, marked by hyperinflation, a demand for skilled workers, and widespread industrial actions, continues to disrupt operations.

Sullivan stressed the ongoing challenge of ensuring product availability, saying “During the pandemic, the crisis was about scrambling for medical supplies. Now, even minor disruptions – be it geopolitical or weather-related – can make medical and surgical products unavailable with just a week’s notice. This impacts patient care directly.

“We need more reliable information and accountability from manufacturers. If product A can’t be delivered, there must be a backup plan with product B.”

Fragmentation within the industry is another significant concern, Sullivan noted. “Providers are coming to us with efficiency solutions, but we can’t have bespoke solutions with every company. We must collaborate more effectively,” he urged.

McCormack echoed the importance of real-time data. “Visibility into potential inventory risks is crucial for maintaining clear communication with customers,” he said. “The pressure on manufacturing and logistics costs is enormous, so we’re exploring efficiencies within our supply chains. How can technology and AI help streamline processes and reduce expenses?”

The lack of integrated data remains a major obstacle, Gardner emphasised. “The key challenge is that we’re not joined up as far as the data is concerned. We need to look at how we tackle that as an industry, because end-to-end visibility is what we want to be able to see where that product is in any part of that supply chain – whether it be from the source or on the way to the patient. That’s utopia.”

Sullivan added, “We all have zero tolerance for modern slavery. With connected data, we can make an immediate impact and contribute to a better planet.”

He also discussed Ramsay Health Care’s efforts to simplify its vendor network, saying “We’re aiming for fewer suppliers and more preferred partners to minimise costs and reduce complexity.”

McCormack highlighted the need for accurate and timely data. “How do we ensure that the information we share isn’t outdated by the time it reaches our partners? Achieving visibility across the supply chain – both internally and externally – should be a key priority,” he said.

Sullivan concluded with a call for leadership in developing an “industry-wide inventory management platform.” He emphasised, “This isn’t about gaining a competitive edge; it’s about solving a universal problem. The real value and competitive edge lie in the clinical care, products and services that the medtech industry provide, not in a supply chain management solution.”

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