A presentation on

SCM Strategies of the Healthcare

industry during the economic
meltdown of 2008-09
Contents
1. Aim and Objectives
2. Introduction
3. Overview of the Indian healthcare industry during 2008-09
4. About Seimens Healthcare
5. Seimens healthcare’s SCM Strategies during 2008-09
6. Areas of Opportunity and the Impact of Global Recession on
Indian Health Care Sector
7. Conclusions
Aim
To study the Supply chain management strategies of the
Healthcare Industry during the economic meltdown of 2008-09.

Objective
1. To do a literature survey on Impact of economic meltdown
on Healthcare industry.

2. To study the changes in the Supply chain management of

Siemens healthcare during 2008-09.

3. To identify the opportunities in the Indian Healthcare

industry.
Introduction
Healthcare IT market - phenomenal growth - last decade
The market comprises
Private companies - public sector - Indian middle class segment
High global prices of essential commodities - unprecedented
financial distress
Job layoffs and cost cutting.
Trajectory of the deceleration in global measures
The key difference from previous global slowdowns
Overview of the Indian Healthcare
industry during 2008-09
The Indian healthcare industry - grown drastically
Healthcare, which is a US$ 35 billion industry in India, is
expected to reach over US$ 75 billion by 2012 and US$ 150
billion by 2017.
The healthcare sector has been playing a key role in fuelling the
Indian economic performance which has been stellar with
robust
GDP growth.
Overall it can be said that the Indian healthcare infrastructure is
fast improving with initiatives by the government and the local
bodies.
About Siemens Healthcare
1.Siemens Healthcare Division is one of the largest suppliers of
healthcare technology in the world
2.Offers solutions for the entire supply chain under one roof
3.Siemens Healthcare is the market leader for innovative hearing
devices
4.It includes
Diagnostic Imaging and Therapy
Laboratory Diagnostics
Infrastructure Solutions
Hearing Instruments
Financial & IT Solutions and Services
Seimens healthcare’s SCM Strategies
during 2008-09
From Healthcare Supply Chain to Collaborative
Relationship

1.For Healthcare industries, supply chain costs are the second

highest expense category

2.Healthcare suppliers need to control their supply chain costs to

remain competitive in the face of growing price sensitivity and
global competition
3. GHX (Global healthcare exchange) and the Global Supply Chain
summit.
4. Making existing business processes more efficient, reliable, and
safe.
5. Siemens Healthcare Consulting offers consulting services in the
areas of Business Strategy and Management, Clinical and
Operational Process Optimization, Technology and Infrastructure

Planning and Integration.

6. Siemens healthcare provides Integrated Performance
Solutions which are holistic and customized approach that brings
together consulting, medical technologies, IT/infrastructure, and
service offerings
7. The end result is an increased quality healthcare deliverable,
greater operational efficiencies, and improved financial
performance
E-Commerce at Siemens Healthcare

• Partnership
 Developing the Electronic Catalog
 Connect
 Order
 optimize
E-Commerce Assistant

• Efficient ordering processes

and easy invoice
reconciliation 
• Improvement of data quality
by offering online catalogs 
• Simplification of business
processes for product choice
and availability 
• Seamless integration and
more transparency 
E-Commerce benefits in health care sector

• Available 24/7
• Efficient use of time
• Worry-free
• Increased order accuracy
• Easy order – invoice reconciliation
• Always know where your products are
Connections
Marketplace Connections
Web shop Connection
Other Connections
Financial value of E-commerce

Continued…
Areas of Opportunity and the Impact of
Global Recession on Indian Health Care
Sector
Healthcare is said to be the industry of the21st century
Opportunities in the sector are growing vertically and
horizontally.
Besides hospitals, other emerging associated segments like
healthcare retail, medical equipment manufacture, diagnostic
chains.
• Medical tourism • Health Insurance
• Medical infrastructure • The pharmaceutical market
• Medical equipment • Medical transcription
Conclusions
India's economy is set to expand 5.1 per cent in 2009 and by 8.0
per cent in 2010, the World Bank forecasted in its Global
Development Finance
the opportunities are massive. Lessons need to be learned from
the recent financial turmoil to reduce vulnerabilities to future
financial stress
healthcare also needs to adopt a collaborative approach to win
the overseas market.
 if the opportunities are tapped intelligently, it would enable the
sector to ease the blow of this financial crisis and help India
through the tough times.
Bibliography
1.Anonymous, Health care Industry in India,
http://www.reportbuyer.com/pharma_healthcare/country_reports_pharmaceutical/health
care_industry_india_2009.html, retrieved on April 6th 2010
2.Anonymous, Siemens healthcare Supply chain management,
http://www.medical.siemens.com/webapp/wcs/stores/servlet/NewsView~q_catalogId~e_-
111~a_categoryId~e_1011115~a_catTree~e_100011,1011114~a_langId~e_-
111~a_pageId~e_118707~a_storeId~e_10001.htm, retrieved on April 6th 2010
3.Reeti Debnath, The global economic slowdown and its impact on Indian healthcare
industry, www.aima ind.org/.../Case_Study_Reeti_Debnath_24080991200949030.pdf,
retrieved on April 6th 2010
Thank
You