Top business and supply chain concerns
Globally, the top healthcare business concerns include increasing regulations – the top concern cited by 52 percent of executives – as well as healthcare reform and other changes in legislation, cited as a concern by 51 percent. Intellectual property protection ranks third on the list of top concerns, cited by 48 percent of respondents. Concerns around intellectual property protection are highest in the U.S. and Asia.
The No. 1 specific supply chain concern is regulatory compliance, cited by 65 percent of respondents. Cost management comes in second with 60 percent citing this as their top supply chain issue. Only 41 percent report success in managing their supply chain costs. In addition to regulatory compliance and managing supply chain costs, product security and product integrity have risen to the third most cited supply chain issue, reported by 57 percent. In emerging markets, it is a more significant concern as it is ranked first or second by survey respondents.
“Concerns around regulatory compliance and cost management have been constants for healthcare supply chain decision-makers over the past five years while we’ve seen growth in concern around areas such as product security and product protection,” said Scott Szwast, UPS Healthcare Segment Marketing Director. “While these areas will always be a focus in the healthcare industry, companies can experience positive impact by examining strategies such as increased collaboration, adopting segment based supply chains and leveraging new innovative models and technologies.”
Views on economy and industry
In addition to exploring top business and supply chain concerns, the survey probes healthcare decision makers’ views on the economy based on what they are seeing within their own companies. Healthcare decision-makers in the United States were slightly less optimistic on the economy, with 53 percent of U.S.-based decision makers reporting they’re still feeling economic impacts in terms of tightened spending and other reductions. This compares to 43 percent in Latin America, 35 percent in Western Europe and 26 percent in Asia that are still feeling economic impacts.