Cost-benefit sharing in healthcare supply chain collaboration

Abstract

© 2018 Inderscience Enterprises Ltd. This paper proposes a framework for the cost-benefit sharing in healthcare supply chain collaborations. Collaboration in a supply chain can lead to cost reductions, risk management and performance improvements. The key to a successful collaboration is that the costs and benefits are shared by all, in that the costs are taken from the entire system and mutual benefits are provided for all parties. Our literature review and interviews with experts investigated the following three processes. Firstly, the cost and benefit parameters are defined as coordinate costs and benefits by a cost-benefit analysis. Secondly, the cost-benefit sharing characteristics are classified as two-echelon, three-echelon, and multi-echelon. Thirdly, the collaboration levels are categorised into four levels: data sharing, information sharing, knowledge sharing and cost-benefit sharing. Consequently, the cost-benefit sharing scenarios are presented.