Climate Change and Healthcare Supply Chains: Baxter’s Lessons from Hurricane Helene
Oct 17, 2024
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Climate Change and Healthcare Supply Chains: Baxter’s Lessons from Hurricane Helene
Baxter’s disruption during Hurricane Helene highlights how climate change threatens healthcare supply chains. With more frequent extreme weather events, reliance on centralized manufacturing hubs risks delays in delivering life-saving products.
Key Vulnerable Areas
Coastal Manufacturing Hubs: Facilities like Baxter’s North Cove plant are exposed to hurricanes and flooding, risking disruptions in critical supplies.
Pharmaceutical Raw Materials: Dependence on regions like China and India makes production vulnerable to climate events.
Energy-Intensive Production: Power outages from storms can halt production of vaccines, biologics, and essential medicines.
Opportunities to build Resilience
Climate Risk Assessment: Audit facilities and suppliers for climate vulnerabilities; develop mitigation strategies.
Supply Chain Resilience: Diversify production, create alternate supplier networks, and monitor raw material flow.
Sustainability & ESG Compliance: Align operations with ESG goals; adopt renewable energy and carbon-neutral strategies.
Inventory & Logistics Optimization: Implement buffer stock policies, optimize cold-chain logistics, and forecast demand using AI.
Digital Transformation: Use real-time tracking and AI tools to enhance supply chain visibility and predict disruptions.
Business Continuity Planning (BCP): Develop disaster response frameworks, train staff, and run crisis simulations.
Why Resilience Matters
Baxter’s experience shows that building resilient healthcare supply chains is essential—not just for business continuity but to protect patient care. Proactive strategies help prevent supply shortages, ensuring uninterrupted access to life-saving products and maintaining public trust