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The Emergence of Consolidated Service Centers in Health Care
Author(s) -
Abdulsalam Yousef,
Gopalakrishnan Mohan,
Maltz Arnold,
Schneller Eugene
Publication year - 2015
Publication title -
journal of business logistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.611
H-Index - 79
eISSN - 2158-1592
pISSN - 0735-3766
DOI - 10.1111/jbl.12107
Subject(s) - supply chain , rationalization (economics) , business , disintermediation , service management , supply chain management , process management , health care , operations management , service (business) , marketing , industrial organization , knowledge management , computer science , management , finance , economics , economic growth
Hospital supply chains can be conceptualized as complex systems with a large number of players and a high degree of interrelatedness among them, creating an environment that is difficult to optimize and manage. In recent years, a consolidated service center ( CSC ) strategy (sometimes also referred to as “self‐distribution” strategy), has emerged in some healthcare systems, showing a strong potential for reducing the complexity in a hospital's supply chain to achieve high levels of performance and innovation. We examine three CSC s using a qualitative case method to understand the unique characteristics of this supply chain strategy, and how CSC s move hospital supply chains toward a less complex state. We find that CSC s demonstrate characteristics that distinguish them from other supply chain strategies. These characteristics enable the CSC to orchestrate supply base rationalization and disintermediation initiatives in the hospital's supply chain to effectively reduce the number of components and interrelatedness in this complex system.