Technological Innovations in Supply Chain Management Towards a Circular Economy in the Healthcare Sector of the UAE

Technological Innovations in Supply Chain Management Towards a Circular Economy in the Healthcare Sector of the UAE

Sumita Dave, Nikita Shaikh
DOI: 10.4018/978-1-7998-9664-7.ch008
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Abstract

Traditional techniques of linear economy generate a lot of waste, which leads to unsustainable practices in the supply chain management. This chapter analyses the impact of circular economic system practices on company overall performance for a circular supply chain and explores the mediating position the technologically driven supply chain plays inside these relationships in the healthcare sector in reference to UAE. UAE and the 2030 Agenda of Sustainable Development Excellence in Implementation 2017 report suggests that UAE raises cognizance of, and integrates, sustainability standards into its agenda to promote sustainable lifestyles. Since most products in UAE are imported, the supply chain is lengthy and fragmented, making procurement expensive. Hence, an innovative technology-driven green supply chain can be an effective solution for both cost and waste reduction.
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Introduction

The GCC region has witnessed spectacular growth in the last two decades, specially in the Healthcare sector. Therapid demand in the Healthcare sector has been due to primarily the senior citizen population and also due to rising widespread of lifestyle diseases. However, the GCC countries have made exceptional efforts to make world class healthcare facilities accessible to all its residents and citizens.

This has driven the GCC healthcare market at a CAGR of 7.7% (2009-14) to reach US$55 bn by 2014. The UAE and Saudi Arabia are the major economies in the GCC region and are projected to grow at almost 76% by 2018.

The major chunk of the services in the healthcare sector in the GCC region is provided by the expatriate healthcare workforce. The government is taking leaps to bring down this dependency by setting up good quality training institutes and educational organizations.

In the last decade, the UAE has made path breaking efforts to create a robust healthcare infrastructure that is now increasingly being considered at par with international standards.

Since 2007, the UAE has more than doubled its healthcare budget, spending 3.3 percent of GDP on healthcare in 2014. In the years 2016-22, the market is expected to grow at an impressive CAGR of 8%.

The Northern Emirates' major healthcare regulator is the Ministry of Health (MoH). It is the federal authority in charge of bringing the UAE's healthcare policies together, building a comprehensive and nationwide healthcare service, and ensuring that healthcare is available throughout the country.

The Dubai Health Authority (DHA) is the Emirate's healthcare regulator and operator. It develops and supports medical education and research institutions, as well as defining the region's healthcare policy and strategy. In Dubai and its free-trade zones, it also oversees and licenses all healthcare facilities and services.

The Health Organization of Abu Dhabi (HAAD) is a financially and administratively independent public health authority in Abu Dhabi that issues requisitions for healthcare facilities and establishes regulations for the region's healthcare providers. At the policy level, it also oversees the management of healthcare services.

The UAE’s healthcare infrastructure outshines that of other GCC countries.

In terms of physician and nurse density, Dubai and Abu Dhabi top the GCC region, although they lag somewhat behind in terms of bed density, indicating that there is significant room for more of these facilities to be built.

In November 2014, Dubai enacted the first phase of its new health insurance law. All businesses with more over 1,000 employees were required to provide medical coverage for their employees, who were then responsible for covering their dependents. Smaller businesses must follow suit by 2016. (GCC Healthcare Sector A Focus Area for Governments October 2015. (2015). Ardent Advisory and Accounting).

The UAE has a comprehensive government- funded healthcare provider and a swiftly developing private healthcare sector.

In the last decade, the UAE has made committed efforts to create a robust healthcare infrastructure that is now increasingly more being viewed at par with worldwide standards.

The UAE Vision 2021 targets to achieve a world-class healthcare device in the us of a through public and private participation. The Vision seeks to have all public and non-public hospitals approved in accordance to national and global high-quality standards with regard to clinical services and staff. The National Agenda additionally emphasises the importance of preventive remedy and seeks to minimize the incidence of cancer and lifestyle-related illnesses to help citizens live a longer and healthier life.

Compliance to nearby standards and regulation is specifically fundamental in the healthcare zone of any united states for medical and operational effectives, as well as for accreditation purposes however, due to the fact most medical products are imported in the UAE, the provide chain is often long and fragmented making it difficult for procurement gurus to track.

Further complicating the supply chain in the UAE healthcare area is that producers frequently have special retailers restricted through precise geographic boundaries inside the UAE, limiting timely servicing including warranties, restocking consumables and substitute parts which end result in short supply and ineffective procurement processes.

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