The process of planning, creating, carrying out, controlling, and monitoring the flow of diverse goods and services is known as supply-chain management. It aims to create a competitive logistics infrastructure, enhance net value, and coordinate supply and demand for goods to measure performance. Healthcare supply chain management covers all activities related to the production, sale, and delivery of medical supplies.

The healthcare sector, which has one of the strongest growth rates, is impacted by rising service costs. Due to the increased quality provided in the healthcare supply chain, costs related to supply chain management are increasing. Manufacturers have had to spend a lot of money to keep up a higher standard. Hospitals are currently looking for strategies to reduce costs and improve their competitiveness.

By adopting regulations allowing for unique device identification (UDI) for medical equipment, the European Commission, the United States Food and Drug Administration (FDA), and other organisations have made the healthcare supply chain a strategic priority globally.