Supply Chains Revisited: In Stock, Out of Stock, Recalled, Part 2

Take advantage of your blue-sky days before the storms arrive

A few years back, I wrote a blog discussing the uncertainty and instability within the supply chain. With today’s current events and the impact of Hurricane Helene, the supply chain is again a top priority.

The availability of goods and supplies needed to operate any business should not be taken for granted. One day, it’s blue skies; the next is fraught with challenges trying to locate and secure lifesaving and life-sustaining medications, supplies, equipment, and nutritional substances.

The variance between significant disruption and the unrestricted flow of goods isn’t necessarily smooth and predictable, and this can complicate our decision-making processes. How can we possibly know what we’ll need, when we’ll need it, and how much we’ll need to obtain or stockpile?  

Starting points

First, we need to be honest with ourselves. The success of the supply chain is fragile, and it hinges on many unfractured elements.

There is a need for raw materials. There’s a need for parts. A need for people. Uncompromised technology. Solid processes and logistics. And unrestricted transportation resources and infrastructure. Any failure or glitch within any one of those elements can hinder, slow, or stop the overall process.

This reminds me of the semiconductor chip shortage that grabbed many headlines during 2021. The manufacturing and sales within the automative industry were halted. But this wasn’t the only issue. Cellphones, computers, refrigerators, LED lighting, medical devices, and many other products dependent on that technology were impacted. Critical infrastructure like dams and water systems which rely on sensors felt the effect, as well.

Unlike this recent Baxter intravenous fluid manufacturing issue, which was identified early on, the semiconductor issue slowly crept into our daily lives and our normal business operations. It’s almost as if it was always in the room but never acknowledged and respected. The semiconductor issue actually began in 2020, but the issue wasn’t necessarily felt or fully recognized until early to mid 2021. And, it didn’t stabilize until 2023.

Navigating shortages

To help navigate potential shortages and issues, we need to appreciate what can cause disruptions.

Clearly, natural disasters like a hurricane are one source. Events like earthquakes, floods, tornados, and other severe weather events can have ripple effects on our daily operations and the care we provide. There can be economic fluctuations and variations of costs. Political instability and conflicts pose potential hindrances. And—maybe the most unpredictable threat of all—a compromise to technology. Systems and processes are greatly dependent on technology, but that tech and equipment can become a useless object with one ransomware or cyber-attack.

What to do

Some events and issues that are miles and miles away from our front doors can slow or stop the goods and products our health care professionals need to provide care. A bridge collapse and the closure of a port in one state, a labor strike in multiple states, or a bankrupt and shuttered pharmaceutical manufacturer in the Midwest could leave our shelves bare and our bedside providers empty handed.  

Because of the unpredictability and impact of events, it’s nearly impossible to be ready to manage every shortage. But we should be vigilant and monitor current events, local and national activates surrounding the workforce, and the markets we greatly depend upon.

During the blue-sky days, we should identify specific critical items and goods, and—at a minimum—have discussions with our teams and staff about ways to mitigate and navigate a potential shortage. We can’t afford to plan and strategize when the storms begin to roll in.

What can we do?

• Communication:  All levels of staff should be encouraged to voice any potential issues they may be seeing. Information can be relayed easily during staff huddles and reported up the leadership chain. The more eyes watching the environment, the greater the likelihood issues will be recognized early.
• Data trends:  Monitor when an item is anticipated to arrive and when it arrived. Was it the right quantity? Does the data show any trends, and are there adjustments that can be made?
• Reporting:  Generate daily reports from purchasing department.
• Coalition building:  Communicate with partners, stakeholders, and health care coalitions. Are there any best practices?
• Accommodations:  Always consider the needs of special populations. This demographic may require items or supplies we don’t typically think of (e.g. communication aids, support animals, the production of wheelchair or walkers).

Other best practices:

• Partner with supply chain professions like Vizient.
• Monitor product recalls at:  U.S. Consumer Product Safety Recall list.
• Monitor drug shortages at:  U.S. Food & Drug—safety and availability.
• Monitor food recalls at:  U.S. Food & Drug—recalls, outbreaks, emergencies and the U.S. Department of Agriculture—Food Safety and Inspection Service.

And, lastly, review old documentation from any previous events and record new actions and activities. What mitigations strategies worked in the past, and can they be implemented with this new event? What didn’t work? Be innovative and creative. Record alternate solutions and supplies utilized. For critical supplies and equipment, consider adopting a just-in-case approach rather than a just-in-time approach. Document the staff and team members who created effective strategies and positively impacted the navigation of the event. Who we have today, and what we learn today, might help us tomorrow.

For more information or questions, don’t hesitate to contact me, or another member of HAP’s emergency management team.

Author: Matt Linse, HAP manager, emergency management.

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