CSCs emerged long before the pandemic; now their presence is magnified through crisis, supply chain delays
October 8, 2021 – Before the pandemic, Consolidated Service Centers (CSCs) were emerging as a viable option for IDNs large enough to take on the challenge of self-sufficiency within their supply chains. The challenges of the pandemic highlighted why CSCs continue to gain popularity among IDNs.
According to a recent survey of health systems regarding CSCs given by Jamie Kowalski Consulting, a healthcare research firm, 76% of respondents felt government responded poorly or very poorly to the pandemic, and 53% felt distributors responded poorly or very poorly to it. Also, 41% felt GPOs responded poorly or very poorly to the COVID-19 crisis.
“There was a perception that direct suppliers performed better than distributors,” said Jamie Kowalski, founder of Jamie Kowalski Consulting and a strategic advisor in healthcare supply chain management. “But no supply chain in the world can make products suddenly appear that were never forecasted or required. It was a wakeup call on preparedness plans for health systems. The existing plans were insufficient.”
The top challenges were the lack of available stock, escalating unit costs for PPE and other stock, and increased lead times, particularly from international sources for PPE. This led to health systems identifying and qualifying new sources of supply quickly and asking themselves what their actual demand was, and when and where they needed it.
And IDNs with CSCs in place 100% believed it helped them…