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Eldercare Review | Friday, February 03, 2023
Operators are increasing their use of suppliers, adding local suppliers, and switching suppliers to improve their strategies.
FREMONT, CA: In the senior living industry, supply chain challenges continue to pose significant challenges, and although many executives believe that these challenges will improve in the first half of 2023, others see relief further down the road. Meanwhile, operators are taking action to improve their strategies by adding local suppliers, changing suppliers, and increasing the number of suppliers they use. They are also implementing new technology and adding new roles focused on material management. It is difficult for the industry to keep up with an unprecedented surge in demand caused by the pandemic. The industry has added local suppliers, changed suppliers, and increased the number of suppliers to meet demands. The new technology and additional roles are hoped to streamline supply chain processes and increase efficiency.
Studies show the extent of operators' challenges and what they can expect to encounter.
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Supply chain optimism and pessimism: Interest rates in the US have risen, and geopolitical events have affected senior living supply chains, as have natural disasters like hurricanes and ice storms. Construction and renovation of senior living facilities become more difficult as interest rates rise. Geopolitical events can impact the cost of goods, while natural disasters can disrupt the supply chain by damaging infrastructure and limiting access to goods. Building or renovating new facilities becomes more expensive when interest rates are high. Geopolitical events, like the US-China trade war, can increase the cost of goods and materials. At the same time, natural disasters can damage existing facilities or disrupt the supply chain, making it more difficult to access necessary items. The survey indicates that almost half of the senior living leaders expect supply chains to improve in the first half of 2023, despite their hopes for quick relief.
Supply chain difficulties: Despite the optimism of many operators about the future of their supply chains, the industry's stability remains a mystery. Residents and their families may need more time and resources to wait out lingering problems, even if operators have time and resources. Despite this, there are signs that improvement is near. The supply chain is improving, materials and FFE delivery are better, and labor is better for upcoming projects in 2023. For Health Dimensions Group (HDG), vendors predict lower costs in 2023, although they have also taken steps to improve purchasing and inventory management practices. The company operates communities and has a consulting arm. The HDG has implemented automated purchasing software to help communities stay on budget. Keeping inventory under control can also reduce supply-related costs. It can reduce costs by streamlining the procurement process with automated purchasing software, ensuring that communities get the best possible prices for the required items. Additionally, better inventory control can help to prevent overstocking and reduce waste, resulting in savings.
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