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Healthcare Supply Chain Management Market Worth $3.3 Billion

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The global healthcare supply chain management market is expected to reach $3.3 billion by 2025, representing a healthy compound annual growth rate of 7.9% between 2020 and 2025. This is according to a new market research report by MarketsandMarkets.

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The growth in this market is being driven by several key factors, including the increasing adoption of supply chain management software, the emergence of cloud-based solutions, and an effort by healthcare organizations to reduce operational costs.

Healthcare providers and organizations are looking to better manage their supply chains in order to deal with rising costs and improve efficiency. Supply chain management software provides features like inventory optimization, purchase order management, warehouse management, and transportation management. These solutions help healthcare organizations enhance visibility, coordination, and planning across their supply networks.

Cloud-based supply chain management solutions are seeing high demand as they allow healthcare organizations to access information from multiple locations while also saving on infrastructure and maintenance costs. The flexibility and cost-effectiveness offered by cloud-based solutions should drive the fastest growth in the market over the next five years.

From an end-user perspective, manufacturers are expected to account for the largest share of the healthcare supply chain management market. Manufacturers need to respond to the growing demand from providers and distributors. Advanced supply chain management platforms enable manufacturers to manage transportation and logistics better so they can fulfill demand efficiently.

On a geographic basis, North America is likely to witness the fastest growth rate in the use of healthcare supply chain management solutions due to hospital consolidation, increasing prevalence of chronic diseases, and greater awareness of the benefits of supply chain optimization in the region.

The healthcare supply chain management space remains highly competitive with several major players and many startups jostling for market share. Some of the leading vendors highlighted in the MarketsandMarkets report include SAP, Oracle, Infor, McKesson, TECSYS, Global Healthcare Exchange, and Cardinal Health. Most large IT vendors today offer end-to-end supply chain management platforms tailored for healthcare organizations.

Merger and acquisition activity also continues to shape the competitive landscape. Earlier in 2020, Infor acquired Intelligent InSites, a real-time location solutions provider, to enhance its healthcare supply chain capabilities. The previous year, SAP partnered with Microsoft to promote joint adoption of SAP’s cloud solutions on the Microsoft Azure platform.

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Overall, the outlook for the healthcare supply chain management market remains upbeat. Healthcare organizations are prioritizing digital transformation and investing in solutions to optimize complex supply networks spanning manufacturers, distributors, hospitals, pharmacies, and physicians. Advanced analytics and AI capabilities are also making supply chain platforms smarter and more responsive to disruptions. As healthcare delivery across the world becomes more complex, supply chain efficiency will be vital.

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