Intelligent supply chains will be a game-changer for healthcare. Big data analytics are transforming care delivery. The U.S. healthcare landscape is shifting and causing providers to revisit their care delivery models. Fee-for-value instead of fee-for-service, physician shortages, digitization of healthcare\u00a0and shifts toward outpatient services are challenging conventional care models. Care providers must utilize data to create information and information to create intelligence, and then use new that intelligence to drive decisions.\u00a0\n\nManufacturing supply chain management covers the entire process from raw products, services and interactions through to the end customer.\u00a0\n\n\nHealthcare supply chain management covers the entire process from raw products, services and interactions through to the end patient.\u00a0\n\nMoving the supply chain levers for health\nFour primary levers must be effectively coordinated and integrated to improve organizational, operational performance: buy (purchasing), make (operations), move (logistics) and sell (marketing). When these functions are linked, supply chains work extremely well. When they aren\u2019t, this pattern encourages excessive outsourcing.\nLinking the supply chain level is essential. This is the case\u00a0whether we are talking about manufacturing supply chains or healthcare supply chains.\nManufacturing supply chains involve:\n\nBuy: Purchasing, e.g. goods from suppliers (supplier).\nMake: Operations, e.g. operational functions for the organization (manufacturer).\nMove: Transporting, e.g. the logistics of shipping products to the right place (wholesaler).\nSell: Marketing, e.g. linking what customers need and want (retailer).\n\nHealthcare supply chains involve:\n\nBuy: Sourcing, contracting, e.g. optimize health networks (care contractors).\nMake: Manufacturing equipment, e.g. CT Scanners, prosthetics and lab equipment (manufacturer).\nMove: Hospitals provide care, e.g. nursing homes, urgent care centers and patient-centered medical homes (providers).\nSell: Insurer health plans, e.g. health benefit and plan offerings to members (insurers).\n\nHow do you know if your organization is building new strengths within your healthcare supply chains?\n\nHas your organization created sufficient scale for care delivery?\nDo you focus more on the outpatient (retail) than inpatient?\nAre there direct-to-consumer and direct-to-patient products offered by your organization?\nDo you look past episodic costs to end-to-end healthcare supply chain costs?\nIs data standardization the norm, offering insightful, intelligent analytics on care delivery?\nHave you clearly identified the top five partners in your healthcare supply chain?\nHas the scope of products been expanded to improve logistics and lower the cost-to-serve?\nHas your organization moved from a business-to-business model to business-to-consumer model for care delivery?\nIs leadership educated about the financial differences between the inpatient cost-to-serve and the cost for remote monitoring, such as telehealth capabilities?\n\nHow do healthcare organizations achieve operational performance? The answer is we get creative and look to innovation in other industries.\u00a0\nIs your organization operating as healthcare supply chain?\nThere are three simple checks that determine if you\u2019re an organization that's running as a manufacturing supply chain: customer relationship management (CRM), supply chain management (SCM), and supplier relationship management (SRM).\nThree different but similar questions offer insight into whether your organization is operating as a healthcare supply chain.\n\nDoes your organization have a patient relationship mangement (PRM) system focused on the downstream interactions between the provider and the patient?\u00a0Focusing on: market, price, sell, call center and order management.\nIs the organization running a healthcare supply chain management (HCSCM)\u00a0program focused on internal processes and operations within the organization?\u00a0Focusing on: strategic planning, demand planning, supply planning, fulfillment and remote care services.\nAre processes and programs in place around payer relationship management (PE-RM) to focus on keeping the patients upstream and coordinating care?\u00a0Focusing on: sourcing, negotiating, buy, design collaboration and supply collaboration.\n\nManufacturing for healthcare\nThere are many parallels between the advancements in supply chain management and healthcare management.\n\nMicrosegmentation: Consumerization\nPoint-of-sale: Point-of-care\nServitization: Person-centered primary care\nValue-based supply chains: Value-based reimbursements\nReverse logistics: Patient readmissions\nManufacturer list price: \u201cChargemaster\u201d or provider list price\nProduct volume discounts: Patient volume discounts\nDesign of products: Design of care\nCost-to-build: Cost-to-serve\nProduct commoditization: Population health\nRemoving intermediaries: Cost-out initiatives\nDirect-to-consumer: Direct-to-patient\n\nIn my next two articles, I'll elaborate on each of these similarities and explain the correlations.\u00a0\nThe next generation of care delivery\nAre you interested in the next generation of supply chain management and big data analytics? Innovative companies are connecting purchasing, operations, logistics and marketing through blockchain technologies. This offers customers, suppliers and producers something they didn\u2019t have. Truth,\u00a0not just trust, in their supply chain. Healthcare delivery systems are taking notice.\nWhy invest in data analytics (DA)? DA is the first step toward a healthcare supply chain, and data is critical to understanding disease.