Interview: Fahad Al Shebel, CEO, National Unified Procurement Company
In what ways will digital technologies improve the procurement of health care supplies?
FAHAD AL SHEBEL: Over the next decade, advanced analytics and machine learning will enhance supply and demand planning. Analysing historical data and market trends will enable accurate predictions of medical and pharmaceutical needs, helping providers optimise procurement and reducing the risks of over- or under-stocking. The digitisation of procurement processes through automation and digital platforms will streamline the entire cycle – from requisition to payment – thereby reducing manual errors, speeding up order processing and increasing transparency. This will lead to cost savings and greater efficiency for health care providers.
Real-time inventory visibility will also be greatly improved with internet of things (IoT) sensors and radio frequency identification technology, allowing the continuous tracking of inventory levels across the supply chain. This will help maintain optimal stock levels, prevent shortages, minimise waste and ensure that essential medical supplies are always available. Additionally, route optimisation tools powered by artificial intelligence (AI) will enhance supply chain logistics by analysing traffic patterns and delivery schedules to determine the most efficient routes. This will reduce delivery times, lower transport costs and ensure the timely delivery of supplies to health care facilities.
How can emerging technologies be leveraged to address health care and pharmaceutical challenges?
AL SHEBEL: Emerging technologies, particularly AI, have the potential to lead to better health care outcomes. For example, AI-powered predictive maintenance can analyse equipment sensor data to foresee potential failures. This minimises downtime and ensures vital medical equipment is always operational, supporting uninterrupted patient care. In warehousing and inventory management, robots and drones can automate tasks like picking, packing and sorting medical supplies – helping to boost overall efficiency and accuracy. The real-time tracking of medical supplies through IoT technologies further enhances supply chain management by ensuring the authenticity, quality and timely delivery of key items.
Which strategies can help reduce dependence on imported medical supplies and drugs?
AL SHEBEL: The government is leading initiatives to incentivise the local production of critical pharmaceutical and medical products, such as insulin and personal protective equipment. This focus on domestic manufacturing is vital to reduce reliance on imports and mitigate supply chain risks. Diversifying the supplier base is another crucial strategy. By broadening supply sources, Saudi Arabia can enhance the resilience of its domestic supply chains, helping to mitigate the impact of macroeconomic pressures resulting from global events such as the Covid-19 pandemic.
Maintaining a minimum stock of essential medicines and supplies is also imperative. Strategic stockpiling ensures the availability of crucial health care products, even during global supply chain disruptions, thereby enhancing the resilience of the pharmaceutical sector. The accurate assessment of needs and forecasting are central to strategic planning. Resilience is further enhanced by diversifying import sources through developing strategic partnerships that encourage global firms to establish production lines within the country.
Supporting these efforts requires further development of the scientific research and innovation ecosystem through international partnerships and investment in human capital. Additionally, raising awareness about the optimal use of medicines is crucial to avoid waste. Through these strategies – local production, supply chain diversification, strategic stockpiling and fostering innovation – Saudi Arabia is strengthening its pharmaceutical security, reducing reliance on imports, and ensuring the health and well-being of its population.
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