Supply chain redesign in the healthcare industry of Singapore

The paper aims to investigate cost reduction in logistics and supply chain management of medical supplies.

The paper takes the form of a case study.

In many healthcare systems, executives focus on cost containment efforts to lower acquisition price of supplies instead of lowering the total delivered cost. However, the case in this research presents a novel contemporary approach to reduce costs by process reengineering in supply chain management.

Healthcare managers are continually searching for innovative ways to contain costs without sacrificing quality. To achieve a reduction in costs, hospitals need to review their activities and associated costs, and eliminate nonvalue‐added activities. The novel process reengineering presented in this paper is concerned with the centralization of warehousing and the control of non‐production goods.