Redesigning Smart Healthcare Supply Chain: Value Creation in the Era of Industry 4.0

Abstract

Indian healthcare (HC) sector has faced severe challenges of increased cost and quality over the past few decades. On the same front, the value chain environment as a challenge is exerting a strong thrust on HCFs to search for opportunities to enhance quality, reduce costs and excel in operational efficiencies. Supply chain management in the HC sector is more complex as compared to other industries. This is due to the fact of repetitive sudden health outbreaks and the level of HC services and product delivery required to the patients covering the vast geographical areas. In pursuance of this, the present research aims to take into account smartening the healthcare supply chain (HCSC) from the perspective of Industry 4.0 implementation. To achieve smart HCSC performance, the decision-making variables and other related dimensions of HCSC are identified and analyzed to present a holistic model of HC services delivery. The decision-making variables are identified through an extensive literature survey and consultation with both industry and academic experts. The present study has used various multi criteria decision making (MCDM) tools like: grey theory, fuzzy theory, analytic hierarchy process (AHP), decision making trial and evaluation laboratory (DEMAEL), total interpretive structural modelling (TISM) to explore and analyse their overall contribution for developing the smart HCSC. Further, the study proposes the hypothetical model on redesigning the smart HCSC and empirically validates it using structural equation modelling (SEM) to bring into light the possible areas of enhancing the smart HCSC performance through the implementation of Industry 4.0. The findings of the study suggests that healthcare logistic management, integrated HCSC and sustainable HCSC are the most prioritized factors implementing industry 4.0 in the HCSC hierarchical model. The theoretical model based on TISM has structured the enablers of emergency HCSC into seven interpretive levels to be used for policy and decision making by managers. The analysis of sustainability in the HCSC has resulted in ‘HC bye-product management system’ coordinating and Facilitating Green suppliers in the HCSC’, ‘green packaging of pharmaceutical’, ‘eco-friendly designed HC products and services’ and ‘complying with the ISO 14000 certification’ as the most important drivers. The empirical study conducted in the present research, validated the proposed model on smart HCSC performance and resulted in confirming the effect of HCSC responsiveness (mediator) between independent variables (like: ‘HCSC dynamic capability’, ‘HCSC integration and collaboration’, ‘HCSC technological innovations’ and ‘HCSC risks mitigation’) and the outcome variable ‘smart HCSC performance’. Additionally, the moderation effect through ‘industry 4.0’ is tested positively between the independent variables and HCSC responsiveness. The study has developed theoretical, managerial and administrative implications for practitioners and policy makers in the hope to redesign and achieve smart HCSC performance to be highly responsive to the constant turmoil of demand for HC products and services.