Issue link: https://beckershealthcare.uberflip.com/i/1383677
25 Executive Briefing Sponsored by: I n the healthcare sector, logistics and supply chain teams face constant change. For some time, healthcare has been grappling with the evolution and disruption of the convenience of the purchasing and supply chain experience that's driving consumerism in virtually every industry. Meanwhile, the COVID-19 pandemic has dramatically accelerated the shift of healthcare to home settings over the last year. Becker's Hospital Review recently spoke with Josh Dolan, vice president of global logistics at Cardinal Health, about today's healthcare logistics environment and what Cardinal Health is doing to innovate for the future. He shared how Cardinal Health is facing a variety of challenges head on to ensure that it stays on the cutting edge, rather than being a follower in this space. Cardinal Health's recipe for success: Great products and great capabilities powered by innovative technology Logistics and supply chain have been competitive advantages for Cardinal Health since its founding. Maintaining this source of differentiation, however, means embracing change. "If this year has taught us anything, it's that the landscape is constantly evolving," Mr. Dolan said. "We're very much focused on recognizing the need for change and embracing that." Cardinal Health's customers have demonstrated an increased focus on reliability and speed, as well as efficiency. To fulfill its mission to be healthcare's most trusted partner, Cardinal Health has committed to investing in its supply chain to meet the needs of customers wherever they are and as their needs change. Across the enterprise, the company has made physical infrastructure investments over the last 24 months to expand its distribution capacity in the Medical segment and in its third-party logistics services business, while earning recognition by Gartner Healthcare Supply Chain Top 25 Masters category. In addition, Cardinal Health has expanded refrigerated capacity in its pharmaceutical segment to serve its core pharmaceutical distribution and specialty business. The company has also made supply chain and logistics changes to accommodate increased demand for medical care in the home. For example, Cardinal Health has continued its vigilance around product safety as it has expanded delivery to patients' homes, and the company has turned its attention to providing better consumer visibility into product locations. Mr. Dolan and his team continue to monitor if direct-to-patient deliveries will continue at the same pace once the COVID-19 pandemic is over. The logistics team understands, however, that flexibility is critically important. As a result, they are building resilient capabilities that will support the business no matter what happens. "We have a strong history of great products, as well as great global supply chain capabilities powered by cutting-edge technology," Mr. Dolan said. "We're constantly investing in these areas. When you put those things together with the customer at the center, that's really our differentiation. Every day, our team provides the highest levels of service possible. It is what makes us healthcare's most trusted partner. Next-generation logistics solutions rely on infrastructure and technology investments, as well as partnerships To continue its legacy as a global supply chain leader, Cardinal Health is exploring a wide range of logistics innovations. The company has been doubling down on enhanced visibility across the entire supply chain and its partnership with the supply chain tracking solution company FourKites is playing a central role in this area. "One thing that we had been working towards and the COVID-19 pandemic illuminated for us is that consumers expect high levels of transparency and visibility; they can see when their car share ride is coming and the exact location of their online shipment," Mr. Dolan said. "There's no reason that Cardinal Health shouldn't be able to provide the same information for our products that are in transit. We need visibility and transparency on the customer-facing side, whether that's a pharmacy or an at-home customer." Cardinal Health's collaboration with FourKites has created connectivity with all carriers across the network from large national carriers all the way down to small businesses and diverse businesses that may own just four or five tractors. The FourKites partnership is also helping Cardinal Health to develop a cognitive network that enables the logistics team to read and react proactively to whatever is happening across the supply chain. With this information, they can make inventory decisions and ensure that service levels remain at the absolute highest levels possible, despite possible supply chain disruptions. Great products & great people: How Cardinal Health is working to transform supply chain logistics