With 4.5 trillion doses of medicines consumed each year worldwide, out of which over 50% of the population takes more than just one daily dose of medications, healthcare supply chain management clearly plays a central role in our daily lives. AI can analyze large amounts of data in order to identify patterns and hidden correlations, which would otherwise take humans considerably longer to comprehend and decipher. It can also be fed with a wide range of variables, which gives the engine more flexibility in its analysis.
AI is revolutionising the overall healthcare landscape
Automating healthcare is then, perhaps, a result of this changing healthcare landscape and the growing use and rapid adoption of technology. The healthcare sector is experiencing a dramatic shift in how goods and services are delivered. There are several driving factors in this transition, including a shift away from treating shorter episodes of illness towards a greater focus on long-term wellness and prevention. In addition consumers and patients alike show the deviation from and changing expectations.
One of the main reasons for the rapid adoption of AI in healthcare supply is that it’s the second biggest expenditure after labour with regards to operations, which makes it a financially significant component. New initiatives and technologies therefore affect more than just supply chain, and all the stakeholders in the healthcare process are well aware of the costs.
In addition to allowing standardisation of commodity supplies, artificial intelligence also helps determine the cost and effectiveness of products by analysing large volumes of data. The use of artificial intelligence can also lead to more accurate supply forecasts by combining several statistical techniques and refining algorithms over time, reducing inventory runouts and expiration of goods when there is an overabundance of supplies.
Experts share that the healthcare industry is making sure to maximise the workforce it has without increasing turnover. Using artificial intelligence and automation, hospitals and healthcare service providers have increased capacity and performed more with the limited workforce they have. Artificial intelligence improves the productivity and efficiency of your human workers while lowering employee burnout and improving employee satisfaction.
Predictive models guide in redesigning healthcare
The need to match the right product to the right patient is increasing with more data on how products perform in routine clinical practice. With an increasing push towards redesigning care pathways based on the needs of specific patient populations, AI can be used to understand which treatments work best on what kinds of patients, as well as how to source the right products at the right time.
Predictive analytics, as part of AI, is seen as a huge opportunity by supply chain leaders. Understanding how analytics can help the supply chain management to better predict outcomes and which products can create better healthcare plans for everyone.
A supply disruption in healthcare can have grave consequences, unlike backorders, which are often only an inconvenience. The AI tech-led apps helps to organize supply chain data, which aids manufacturers, distributors and pharmacies to better predict and analyze procurement, delivery channels and overall costs. This eventually leads to reduced loss percentage for all stakeholders as they are now more aware of all the available choices.
Automation can lead the way to decision making
Supply chain leaders have already begun to benefit from AI and automation, such as managing backorders, quickly finding clinical equivalents, automating preference card updates, and managing POs and invoices. However, supply chain leaders are looking for more with two key needs for the future include tracking rebates and invoice auditing for purchase services.
The magic of artificial intelligence lies in the lack of transparency regarding how it makes decisions, because it is constantly learning and changing how it selects, weighs and relates various variables to make decisions. There is a huge potential for AI and machine learning in healthcare today, particularly as we consider how to harness the rapidly expanding pool of knowledge that’s generated every day. On the other hand, there’s still a lot to learn about how to apply AI in healthcare.
With machine learning and predictive analytics, AI goes far beyond just developing better search features. It can help pharmaceutical supply chain managers address some of the biggest challenges that guide analytical decision making, inventory management for personalized medicine and automating the warehouse communication.
Artificial Intelligence is at a turning point. In the next decade it is expected to provide a huge boost to the global economy. With AI already worth $902.1 million in the life sciences market, it is expected to grow at a rate of 21.1 per cent through 2024 and beyond making critical changes and contributions especially to the pharmaceutical supply chain.
by Ashok Yadav ,Cofounder, Biddano
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