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As international conflict continues to strain global supply chains, the flow of medicines and medical supplies is coming under increasing pressure.
A recent report from Reuters detailed how conflict in the Middle East is disrupting air routes and forcing rerouting of critical medicines, including cancer drugs and other temperature sensitive treatments, a scenario that may lead to higher costs and extended delivery times.
For medical practices and pharmacies, these developments highlight that the possibility of supply challenges in the near future cannot be ignored. Medical practice and pharmacy owners will need to remain vigilant, as delivery and supply pressures can quickly ripple through logistics channels and affect what’s on the shelf tomorrow, next month, and even further down the track.
Preparing your medical practice or pharmacy for
supply chain risks
Even before the current geopolitical tensions, pharma and healthcare supply chains were under strain. According to an OECD Health Policy study, Securing Medical Supply Chains in a Post-Pandemic World, supply networks for medicines and medical consumables are global and complex. They often involve multiple countries, manufacturers, transport hubs, and regulations. Breakdowns in any part of this chain can delay delivery or reduce availability, and the pandemic showed just how vulnerable these systems can be.
Events like the Middle East conflict are testing those networks further. Disruptions around key trade routes (such as the Strait of Hormuz) have forced companies to reroute cargo, adding to fuel and freight costs. Air freight capacity is limited, and cold chain shipments which are needed for vaccines, biologics and many oncology treatments are especially at risk because any delays can compromise quality and safety.
These pressures could translate into increased wholesaler costs, longer lead times, and ultimately tighter margins for practices and pharmacies that depend on timely delivery of products and supplies. Some markets have already reported rising prices for common medicines and warnings of shortages if conditions persist.
For medical practices, understanding how these supply pressures might affect specific treatments or clinical supplies is critical.
For pharmacies, supply arrangements are often tied to wholesale agreements with a primary supplier, so expanding them isn’t always straightforward. In that sense, it’s important to be prepared and informed so you can anticipate issues and consider contingency plans ahead of time, rather than reacting under pressure.
Strategic guidance for practice and pharmacy
operations
Preparing for uncertainty starts with understanding the numbers behind your business. By modelling how delivery delays or price increases could impact cash flow, staffing, service delivery and patient care, medical practice and pharmacy owners will be well-placed to act proactively instead of reactively if the situation quickly deteriorates.
To help you stay a step ahead, RSM’s Medical Services and Retail Pharmacy specialists can support you with:
- Cashflow analysis
- Three-way forecasting
- Scenario modelling
- Risk assessments
Our advisors can also help you build practical frameworks for inventory and supply risk management that align with your business size and structure. This might include modelling where additional stock makes financial sense, reviewing how supply contracts are structured, and identifying key financial or operational thresholds that trigger contingency planning.
Ultimately, strategic planning for uncertainty helps protect patients and the sustainability of your business. Knowing your numbers, staying alert to supply trends, and engaging external advice will allow you to act confidently and strengthen the resilience of your medical practice or pharmacy if the need arises.
FOR MORE INFORMATION
Or to book a confidential discussion, please reach out to Peter Nicol, Head of Medical Services or Emma Brown, Head of Retail Pharmacy.
