Insights to Help Your Business
UPS Capital® Survey Reveals Supply Chain Challenges Facing the Healthcare Market
Explore the evolving landscape of business and consumer eCommerce healthcare and delivery amidst market growth.
The healthcare market has experienced a surge in recent years – reaching $310 billion in 2022, with expectations to expand to $614 billion in the next four years. Furthermore, the pandemic has sparked increased consumer reliance on and comfortability with virtual healthcare. This trend in the eCommerce healthcare industry shows no signs of slowing down, presenting a lucrative opportunity for today’s healthcare companies.
The 2023 eCommerce Healthcare and Delivery: Annual Checkup report, commissioned by InsureShield® protection offered through UPS Capital, has uncovered how consumer needs are evolving amidst this growth, along with steps healthcare companies can take to deliver better shipping experiences and outcomes.
The Growing Demand for D2C Healthcare
While the concept of shipping healthcare products directly to consumers is still relatively new, the market demand for it is clear: 87% of surveyed consumers feel comfortable having healthcare items shipped, while 78% have already leveraged these services to date. Additionally, 52% of surveyed consumers intend to increase the number of healthcare or medical-related items shipped directly to their homes. Given this momentum, it’s crucial for healthcare companies to invest in refining their shipping practices.
Healthcare Shipping Incidents Are on the Rise
As more healthcare packages hit the road, shippers face similar threats that traditional eCommerce retailers have encountered for years, including porch piracy and unexpected delays caused by weather-related disturbances. Despite 38% of surveyed consumers reporting no concerns with having healthcare-related items shipped directly to them (instead of picking them up at their local pharmacy), reliable delivery remains their primary worry.
Top 3 Consumer Concerns for D2C Shipments
- 30% – Lost Packages
- 24% – Stolen Packages
- 27% – Delayed Shipments
Impact of Weather on Healthcare Shipments
On the other hand, transportation or weather-related delays emerged as the top concern for healthcare company respondents (37%). Unpredictable weather has had a significant impact on healthcare shipments, with 79% of respondents reporting that weather negatively affected their business over the last year.
Consequently, businesses have experienced setbacks to their operations and reputation, leading to an increase in customer complaints, returns, and spoiled perishables due to increased time in transit.
Implications of Shipping Mishaps
Shipping mishaps in the healthcare sector have wide-ranging implications that go beyond mere inconvenience. Considering that 40% of healthcare respondents indicated an average shipment value of $20,000 or more, the financial impact of delivery interruptions can be substantial for a business’s bottom line.
In fact, 36% of respondents reported losses exceeding $50,000 in the last year due to lost, delayed, or damaged shipments. This underscores the urgency to implement measures aimed to help minimize the impacts of shipping mishaps.
Addressing and Solving for Healthcare Shipping Issues
As a result of the shipping issues experienced to date, 71% of healthcare respondents anticipate a rise in supply chain volatility and an increase in shipment issues within the healthcare space over the next few years. In turn, healthcare respondents noted increased demand for:
- 29% – More comprehensive shipping coverage policies
- 28% – Supply chain visibility and enhanced tracking to better coordinate shipments around anticipated bad weather
- 25% – Predictive and real-time analytics to allow for delivery changes with in-route shipments as needed
Given the high stakes involved when shipping mishaps occur — both from a financial and patient care perspective — it becomes imperative to invest more heavily in supply chain partnerships and technology, as well as to leverage comprehensive shipping insurance. These measures are crucial for meeting customer expectations and secure transportation of healthcare products.
For more data on healthcare market trends and insight into how healthcare companies can master the shipping experience, get the full report.
InsureShield shipping insurance offered through UPS Capital Insurance Agency, Inc. You can find the insurance disclosure here.
Additional Resources
Insurance coverage is offered through UPS Capital Insurance Agency, Inc., a licensed insurance producer. All descriptions or illustrations of coverage are provided for general informational purposes only and do not in any way alter or amend the terms, conditions, or exclusions of any insurance policy or program. Insurance coverage is not available in all jurisdictions or to all customers.