Direct Sourcing: Where Is It Now and Where Is It Going?

An Integrated Supply Strategy Moving Towards Higher Levels of Transparency and Service

Direct sourcing is an integrated supply strategy that provides solutions to many of the supply, innovation, and manufacturing problems experienced by healthcare organizations. Because the needs of many healthcare organizations are similar, the approach lends itself to group purchasing, commanding better terms and pricing and more favorable access to supplies. Organizations that use direct sourcing find reliable supplies, continuing innovation and manufacturing diversification. The future of direct sourcing will see greater levels of transparency, similar to those that prevail in consumer online marketplaces. These improvements will be driven by advancements in systems and automation, as new platforms and software are developed that will allow full supply chain traceability. Streamlining of product supply chains with more direct-to-factory relationships is also coming. With supply disruptions expected to persist, direct sourcing will provide healthcare organizations with an innovative model for improved product flow, pricing, quality, efficiency and long-term supply chain resiliency.