Impact of the Global Medical Supply Chain on SNS Operations and Communications Proceedings of a Workshop (2018) / Chapter Skim
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2 Gaps in the Global Medical Supply Chain
2 Gaps in the Global Medical Supply Chain
Pages 7-20
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From page 7... ...
The next chapter summarizes a similar discussion focused on the ways in which SNS assets are requested, distributed, and delivered to patients during public health emergencies. As he introduced the first panel, SNS Standing Committee member Larry Glasscock, senior vice president, Global Accounts, MNX Global Logistics, said that prior discussions of the global medical supply chain had raised his awareness of the pervasiveness of third-party foreign manu 7
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From page 8... ...
Shortages and other gaps in the global medical supply chain represent a mismatch of supply and demand (see Figure 2-2) when supply is low and/or demand is high for particular items, Runnels explained.
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From page 9... ...
. Representing the "last mile" of the private-sector medical supply chain, pharmacist Michele Davidson is senior manager for Pharmacy Technical Standards, Development and Policy, and Government Relations for the retail pharmacy chain Walgreens.
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Further down the chain, a trend toward consolidation among raw material suppliers over the past decade has increased risk for interruptions in the flow of raw materials to manufacturers such as BD, Noé reported. Recognizing this, BD is increasingly purchasing its raw materials from multiple sources when possible, and avoiding sources located in politically or otherwise unstable regions.
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. Supply Chain Structure and Surge Pressure to reduce inventory costs has created inflexible conditions across the global medical supply chain.
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In some cases, surge orders of raw materials -- in quantities that in some cases drastically deplete their markets -- reach manufacturers just as demand for their product falls off, he reported. The consequences of inelasticity, which underlies everyday drug shortages and volatility across the global medical supply chain, can only worsen under surge conditions, he concluded.
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From page 13... ...
"The system is not resilient." Neale described challenges to international medical supply distributors responding to infectious disease pandemics in countries that lack public health infrastructure. During the West African Ebola epidemic of 2014– 2016, she said, Henry Schein sent a supply of gloves and masks worth $1 million to Liberia, where they were rejected, because the country's real need was for PPE.
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From page 14... ...
ADDRESSING SUPPLY CHAIN GAPS As the three panelists' comments made clear, constraints imposed by inelastic inventories significantly limit the ability of medical manufacturers and distributors, as well as retail pharmacies, to respond to emergency surges in demand. In considering how to overcome these limitations, panelists and other workshop participants focused on improving information sharing, coordination, and communication across the supply chain and between public and private sectors.
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From page 15... ...
For example, if a state of emergency is declared in Texas, pharmacists can refill prescriptions for up to 30 days for maintenance medications such as blood pressure and cholesterol drugs. Because Texas was proactive in declaring the state of emergency for Hurricane Harvey, Walgreens had adequate time to consult historical monthly inventories in Houston-area stores and work with ABC to align inventory with projected demand, she reported.
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. Burel expressed hope that its joint efforts with the private sector to gather data on the global medical supply chain would help persuade fed
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Neale emphasized the importance of sharing information among public and private participants in the global medical supply chain, and acknowledged the Standing Committee for its role in fostering such exchanges. "So [many]
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Likewise, DSNS is working to educate public health agencies and health care providers about the stockpile's mission and operation, Burel reported. It has taken seminal events like Ebola to show that the SNS is not just "pills on shelves," but rather a participant in the medical supply chain, and therefore subject to trade and other economic forces, he said.
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From page 19... ...
For the near term, O'Toole encouraged Standing Committee members to become "fonts of wisdom and advocacy" on the issue of medical supply chain security and its consequences for every American, and authors of editorials on that topic, particularly given the teachable moment presented by Hurricane Harvey.
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