Within the functional segmentation of the Healthcare Supply Chain Management (SCM) Market, the combination of Inventory Management and Procurement holds the largest market share. This dominance is due to these functions directly addressing the most immediate and painful financial challenges faced by healthcare providers: waste, stockouts, and high material costs.

Inventory Management: This critical function focuses on optimizing the storage, tracking, and usage of medical products, ranging from low-cost consumables to high-value implants and temperature-sensitive biologics. Key elements include:

• Perpetual Inventory Systems: Moving away from manual counting to automated systems that provide real-time counts, preventing costly overstocking (which leads to obsolescence and waste) and understocking (which leads to costly expedited shipping and, critically, care delays).

• Point-of-Use Management: Implementing automated dispensing cabinets and dedicated inventory rooms close to the point of care (e.g., Operating Rooms, Wards) to ensure supplies are accessible and accurately charged to the patient record, linking the supply chain directly to revenue capture.

Procurement and Sourcing: This function involves the strategic acquisition of goods and services, often facilitated by Group Purchasing Organizations (GPOs). Outsourced or technologically assisted procurement aims to:

• Drive Compliance: Ensure that staff purchases only pre-approved products from contracted suppliers at the best negotiated prices, a process known as Contract Compliance.

• Supplier Relationship Management (SRM): Tools to manage vendor performance, analyze spending patterns, and automate purchase order (PO) generation, which reduces administrative burden and transactional costs.

The combined necessity of reducing the estimated $\text{10\%}$ waste rate in medical supply inventory and achieving maximum contract compliance solidifies the Inventory Management and Procurement segment's position as the financial heart of the SCM market.

For a detailed analysis of the market share, growth drivers, and technologies utilized within the Inventory Management and Procurement segment, consult the Healthcare Supply Chain Management Market Research Report.