Procurement-network contributions to healthcare supply chain resilience: a case study from Canada

Abstract

PurposeThis article investigates how the healthcare sector can reorganize its procurement network to better balance its resilience and cost-minimization objectives.Design/methodology/approachA single case study was conducted on the procurement of personal protective equipment (PPE) during the first COVID-19 pandemic wave in the Quebec public healthcare network. Interviews were conducted with stakeholders from the supply chain management (SCM) departments at eight public healthcare institutions.FindingsTwo major challenges in the early months of the pandemic impacted the development of resilience in the healthcare network. First, peripheral actors’ decisions, which orient procurement objectives, limited the deployment of resilience measures in the supply chain (SC). Second, SC resilience included hundreds of products other than PPE that are critical to the delivery of care. The article illustrates the challenges of SCR, which will inevitably be accompanied by additional costs when purchasing in the public healthcare sector is often focused on the lowest price.Originality/valueDrawing from the network perspective model, this article examines the actions of Quebec supply network stakeholders through the three phases of SCR: anticipation, response to disruption, and recovery. Finally, the article suggests that decision-makers remove the cost of resilience measures from the purchase price of products, in order to maintain these measures over the long term.