Strategic Sourcing and Supply Management of King Faisal Specialist Hospital and Research Center

Strategic Sourcing and Supply Management of King Faisal Specialist Hospital and Research Center

Introduction

According to diverse sources, there seems to have a crucial role of the suppliers in the whole supply chain. The suppliers' risk coping efficiency is one of the major antecedents for it. The problems pertaining to financial instability, capacity constraints, quality related risks and the technological changes are the major variables found disrupting the suppliers' stand in the supply chain. The supply risk depends on the risk sources and outcomes whereas understanding the risk sources differs from industry to industry. Supply chain management affects all factors of the shareholder value of a company which includes cost, customer service, productivity and revenues. In addition to the Strategic Planning, Supply Chain Management is the most popular methods for several operations of firms. The supply chain management system that works in Faisal Specialist Hospital & Research Center is based on the procedure of production of medication, transportation and consumption of medication.

One of the aspects that have a great impact on the supply chain is of disposability. The disposal of medication is considered as very harmful for the environment, and it is costly. It has been accounted that globally approximately $0.56 billion worth of medication and drugs have been thrown into the flush in year 2003 at Faisal Specialist Hospital & Research Center. The performance of the supply chain management system can be improved by using the concept of recycling of those medications and drugs that were not used by consumers. According to the explanation that is given above, it is imperative that all the unwanted and unused medication and drugs should be disposed of properly because of their precarious and the subversive nature.

Supply Chain Management at Faisal Specialist Hospital & Research Center

King Faisal Specialist Hospital & Research Center follows the informal and decentralized process in the risk management. Managing supply chain risks has become one of the major concerns in the value chain. Though the severity of the risks exists in varying degrees across the supply chains, King Faisal Specialist Hospital & Research Center perceives the risks in different ways. Some are risk takers; whereas, some are risk avoiders and want to be at the safe side of the risks. No matter what a company's attitude is in risk management, there is a little bit of impact realized throughout the chain. SCM is not just the order completion. It includes all the processes and operations starting from the product generation through the end of life recycling and disposal. Now, most of the competition is with the domestic and global competitive pressures in a new world economy (Blackhurst, et al. 2005, 4067-4081). Supply chain management supports company to achieve financial growth as well as operating on their competitive advantage.

Cost control is an objective of King Faisal Specialist Hospital & Research Center to manage customers and supplier interfaces between the significant changes. Management of the company must be responsive to the specifications ...