Analyzing the Effectiveness of SAP Systems in Streamlining Healthcare Supply Chains, Reducing Costs, and Improving Service Delivery

Authors: Surya Sai Ram Parimi

Country: India

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Abstract: The management of the supply chain has recently gained importance for a lot of organizations; the hospitals are not exempted. These organizations have however realized the importance of these activities and have adopted the idea fully as far as today’s practice is concerned in different fields. SAP (Systems, Applications, and Products) used in supply chain management is quite popular in healthcare facilities. Although the focus of the research is on the analysis of the extensive utilization of SAP support in healthcare organizations, and its significant effect on the role supply chain management in the healthcare industry [1]. On a deeper analysis, it is possible to note that the findings of the present research point to the increased importance of SAP in enhancing the logistics and production effectiveness in the sphere of healthcare. The implementation of SAP has contributed to adequate inventory turnover levels, the reduction of the bullwhip effect and eventually affecting the stock expenses [1]. SAP is evidently a useful software of great worth, which benefits the efficiency of a healthcare facility. Furthermore, by concentrating on the supply phase, it becomes clear that SAP is capable of yielding a number of benefits, including the development of improved relations with the suppliers, increase in visibility concerning the supplier bases, and improvement of the quality of offered products and services. It would be important again to clarify that other than experiencing improvements in various aspects of TCO, healthcare organizations might not necessarily benefit from SAP solutions specifically for the supply chain. Nonetheless, the usefulness of SAP extends beyond healthcare organizations, with many sectors implementing and leveraging its powerful features [1]. As healthcare organizations continue to recognize the importance of supply chain management, the role of SAP becomes even more vital. The comprehensive features and capabilities of SAP support enable healthcare organizations to streamline their processes, enhance collaboration, and achieve greater efficiency. The integration of SAP within healthcare supply chain management ensures seamless communication, real-time tracking, and improved decision-making.

Keywords: SAP, Inventory Management, Demand Planning, Production Planning, Order Processing, SAP Modules

Paper Id: 1777

Published On: 2016-02-04

Published In: Volume 4, Issue 1, January-February 2016

Cite This: Analyzing the Effectiveness of SAP Systems in Streamlining Healthcare Supply Chains, Reducing Costs, and Improving Service Delivery - Surya Sai Ram Parimi - IJIRMPS Volume 4, Issue 1, January-February 2016.

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