The increasing patient population combined with the unique requirements of women’s health has increased the stress on the operational efficiency of many medical facilities. What is the role of outsourcing in this scenario particularly in improving local women’s health? The move to streamline operations to lower administrative costs can have an impact on the delivery of health services for women.
Why are health providers putting so much emphasis on administrative costs? The reality is that if the administrative costs are out of sync, there is a high probability of the provider going bankrupt. With so many women getting sick and needing unique medical coverage, many may struggle in delivering the needed solutions.
This challenging scenario will affect not only the health providers, but the insurance industry as well. For many, this is the motivation to ensure that overhead costs for managing women’s health are reduced and kept at manageable levels. It is believed that most significant reductions in costs can be achieved from the medical side, there are also some potentials in earning savings from the administrative side as well.
Why outsourcing distribution of medicines to improve local women’s health would be considered as wise spending? From a manufacturing perspective, outsourcing the distribution of medicines will help in concentrating efforts in the manufacture process.
When you outsource the distribution of your products, you will benefit from the knowledge of the distributor about the local conditions, customs, and legal issues as well. The outsource distributor will also be responsible for handling the warehousing and transportation. This translates to huge savings on the amount you will spend on these areas; money that can be used to come out with better products to protect women’s health.
If you are dealing with an overseas market, outsourcing can free you of the currency exchange risks that can be brought about by the fluctuating money market. The local distributor will also be responsible for marketing your product in their jurisdiction so you don’t need to allocate or spend as much in this area. This can also carry over to protection against credit risks.
As part of wise spending strategies, make sure that when you outsource, you choose a distributor that is focused on women’s health and capable of maximizing the sales of your product. If you are exploring a new market, make sure that you outsource to a company that has extensive knowledge of that market. Exploring distribution partners can also work to your advantage.
What is the role of technology in outsourcing the distribution of medicines? Look at it this way, every industry is moving towards automation of its functions. This means that there is a need to adopt new ways of serving the unique needs of your target, like the women’s health sector for example. Technology is essential in ensuring that your distribution channel achieves optimum efficiency.
You can also use technology to collect and collate data that will help the government in identifying women’s health needs. If you can generate a report that will be usable to them, then you are creating a new stream of income for your business. Keep in mind that technology will play a vital role in how you will get paid and generate more income in the future.
Focus on how to configure technology in such a way that it can respond to the health plan needs of your market. The plans have to be in the form of scalable systems so that it does not have a negative impact on the performance of your business and its critical functions. After all, you need to make sure that your investment in technology keeps you competitive in all fronts, not just in terms of distribution.
Outsourcing Business Processing
Will information technology cover the distribution of medicines? As a critical business process, of course it will. What is the immediate impact expected from outsourcing business processing is primarily, improved efficiency and lower costs.
Can this result in the improvement of local women’s health? Yes it can because the improvement in efficiency and lowered costs will cover the distribution and eventually the price of the medicine that women need to get. But is it necessary to outsource both technology and distribution?
Not necessarily so. It would depend largely on the capability of the company and its priority. For example, some companies are outsourcing their entire system management, while others are merely looking at the core business functions.
What companies need to realize is that outsource agencies can provide the combination or resources and capabilities necessary to improve the distribution as well as the level of customer service. The fixed costs associated with outsourcing also helps in the bottom line although there are still some reservations about outsourcing offshore.
Healthcare experts would agree that there are still some pitfalls to avoid when outsourcing. So to ensure that cost reduction and delivery of efficient health plans are met, it is necessary to have a structured agreement upfront to keep performance at specific levels.
This will help keep distribution and other services responsive to the needs of the target sector. For example, distribution and delivery when delayed can make customers unhappy; plus it wouldn’t speak highly of the quality of service that your company provides. Keep in mind that agreements are not limited to maintaining the quality of service, but also can be kept in place with the intent of reducing operational costs.
As you venture into the outsourcing of distribution of medicines, remember that there are still standards that need to be met like the accuracy and turnaround time. The outsourcing agency should be able to improve on the standards that your company maintains and not just keep up with it. How do you do this? Everything has to be incorporated into the service agreement using very specific language.
With all of these in mind, choosing the right outsource agency becomes critical. Ask for references, talk directly to other companies that are using the same outsource agency you are considering, and lastly, stick with agencies that have a reputation for excellent service.
When it comes to outsourcing distribution of medicines to improve local women’s health, it will never be a perfect system. The important thing to realize is that with outsourcing, you will be giving up some degree of control.
Anticipate and be aware of all these things and outsourcing should produce magnificent results for your business goals.