Five signs of a healthy lab supply chain

A clinical lab’s ability to deliver timely diagnostic testing hinges on a stable supply of essential materials and equipment. With a healthy supply chain, the lab hums at peak efficiency to deliver timely results. Without that healthy supply chain, highly skilled lab personnel are left waiting or improvising suboptimal workarounds, physicians don’t get the results they need when they need them, and patient care can be impacted.

So, what are the signs of a healthy supply chain?

1. Inventory is managed by a dedicated supply chain staff or partner

Too often, the flow of supplies through the lab is left up to personnel with other critical jobs to manage. When that happens, managing the supply chain may take a back seat to other tasks, creating gaps in supply and leading to testing backlogs for personnel throughout the lab. In a lab with a healthy supply chain, managing that flow is the main or even exclusive job of at least one staff member, or of an industry partner who can focus exclusively on maintaining both a steady supply of material and reagents, and the provisioning and maintenance of critical instruments throughout the lab.

2. Demand forecasting and risk mitigation ensure that critical supplies are always on hand

The need for critical materials within the lab may fluctuate throughout the year. Managers who can accurately forecast demand are in a better position to match the supply of those materials to their usage, with neither a space-wasting oversupply nor a time-wasting gap when they run out. A healthy supply chain also requires understanding the risks to that chain upstream from the lab (such as the shipping interruptions we saw during the COVID-19 pandemic) and mitigating those risks by taking strategic measures before they cause problems. That kind of demand forecasting and risk mitigation may be best done by a lab partner with a more global perspective than in-house personnel have time to develop.

3. Supply chain metrics are used to improve efficiency

A key sign of healthy supply chain management is the use of data to drive efficiency throughout the chain. This goes beyond keeping electronic track of critical supplies and automatic restocking, to include identifying and monitoring usage, tracking losses through expiration of unused reagents, and other approaches that can save money while improving outcomes.

4. Costs are minimized, and supply is guaranteed through volume purchasing

Volume purchasing is one of the simplest yet most powerful ways to improve the health of your supply chain. The largest buyers get the best prices and, just as important, the most reliable access to limited materials when the market becomes tight. A partner with a dominant position in the market can bring that kind of access and pricing to labs of any size.

5. Supplier relationships and supplier diversity ensure reliability of supply

Managers know that fostering good relationships with suppliers is a pillar of good business. At the same time, seeking a diversity of suppliers helps mitigate risk when upstream supply chains become uncertain. For many clinical labs, partnering with a supply chain specialist can accomplish both goals, if the partner is focused on building those close relationships upstream across the industry. That attention to supplier relationships and diversity can aid in ensuring the flow of critical supplies to healthcare institutions, helping to make sure the clinical lab always has what it needs, when it is needed. And in the end, that is the best sign of a healthy supply chain.