e-commerce Healthcare Supply Chain Network

Every Clinician Needs a Supply Chain Champion

A network to promote leading practice in Canada's health care system

Supply Chain is a Strategic Patient Care Function

eCommerce in the healthcare supply chain

eCommerce has been identified as a leading practice in the healthcare supply chain. HSCN is facilitating the use of eCommerce for the supply chain by healthcare stakeholders.

Industry Canada

In 2004, Industry Canada, in consultation with HSCN, contracted with Deloitte Inc. to do a research study on the status of eCommerce in Canadian hospitals.

The study found that hospitals can expect between two and three per cent savings on their overall supply chain budget as a result of integrated solutions. Respondents were confident that an additional four to six per cent savings are possible in the future.

Ontario Ministry of Finance

The Ministry of Finance has made funds available for developing integrated supply chain management in the broader public sector. HSCN is collaborating with OntarioBuys to promote eCommerce within six hospital sites and/or groups:

Healthcare Materials Management Services (London)
Shared Healthcare Supply Services (Toronto)
Hôpital régional de Sudbury Regional Hospital (Sudbury)
Ottawa Hospitals (Ottawa)
Hospital for Sick Children (Toronto)
Shared Services West (Toronto)

The hospitals operate on different platforms. If the project is successful, this will make it easier to replicate in other Ontario hospitals and across Canada.

The 'big things' hospitals are examining include:

Electronic requisitioning
Electronic replenishment
Electronic fund transfers
Contract database management

Implementing leading practices within the supply chain will let hospitals save on costs, allowing funds to be redirected into patient care. Once there is a critical mass of hospitals using eCommerce, suppliers will be able to make changes to their systems that will enable even greater efficiencies.

Some History

In 2004, Industry Canada, in consultation with HSCN, contracted with Deloitte Inc. to do a research study on the status of eCommerce in Canadian hospitals. The study found that hospitals can expect between two and three per cent savings on their overall supply chain budget as a result of integrated solutions. Respondents were confident that an additional four to six per cent savings are possible in the future.

In 2005, the Ontario Ministry of Finance made funds available for developing integrated supply chain management in the broader public sector. HSCN collaborated with OntarioBuys to promote eCommerce within six hospital sites and/or groups. The project examined electronic requisitioning, replenishment and fund transfers as well as contract database management.

The final report, Supply Chain Modernization in Ontario Health Care—Improving Patient Care, Enhancing Service Levels and Reducing Costs, demonstrates enhanced patient care, improved service levels and financial benefits after incorporating e-supply chain components into the hospital supply chain. It includes suggestions for managing improvement and an overview of the key technologies used to create an automated supply chain.