Country regulations are the biggest barrier to global expansion by healthcare companies, according to a survey by UPS entitled “Pain in the (Supply) Chain”.
The survey, conducted by TNS, found that 46 per cent of executives regarded country regulations as the top barrier to global expansion. Other barriers include intellectual property protection concerns and product quality and security concerns, cited by 33 per cent and 27 per cent of executives, respectively.
“Healthcare companies are feeling the pressure to expand and drive new growth while containing costs and ensuring compliance around the globe,” said Bill Hook, vice president, global strategy, UPS Healthcare Logistics. “That has only heightened the need to build more global flexibility, integration and transformation into the healthcare supply chain.”
The top two planned investments for healthcare companies globally – as cited by 83 per cent of decision-makers – are tapping into new global markets and investing in new technologies.
The most significant specific supply chain concern is regulatory compliance, cited by 65 per cent of respondents. Cost management comes in second with 60 per cent citing this as their top supply chain issue. Only 41 per cent report success in managing their supply chain costs. In addition to regulatory compliance and managing supply chain costs, product security and product integrity have risen to the third most cited supply chain issue, reported by 57 per cent. In emerging markets, it is a more significant concern as it is ranked first or second by survey respondents.