Service modularity in managing healthcare logistics

Purpose The purpose of this paper is to examine how modularity is used for enabling value creation in managing healthcare logistics services. Design/methodology/approach Material logistics of four different kinds of hospitals is examined through a qualitative case study. The theoretical framework builds on the literature on healthcare logistics, service modularity and value creation. Findings The case hospitals have developed their material logistics independently from others when looking at the modularity of offerings, processes and organisations. Services, such as assortment management, shelving and developing an information platform, have been performed in-house partly by the care personnel, but steps towards modularised and standardised solutions are now being taken in the case hospitals, including ideas about outsourcing some of the services. Research limitations/implications This paper proposes seven modularity components for healthcare logistics management: segmentation, categorisation and unitisation of offerings, differentiation and decoupling of processes, and centralisation and specialisation of organisations. Thus, this study clarifies the three-dimensional concept of modularity as a cognitive frame for managing logistics services with heterogeneous customer needs in a rapidly changing healthcare environment. Practical implications Modularity offers a tool for developing logistics services inside the hospital and increases possibilities to consider also external logistics service providers. Social implications Managing healthcare logistics services through modularity has potential social implications in developing healthcare processes and changing the usage of health services. On a wider scale, modularity is helping healthcare systems reaching their goals in terms of service quality and cost. Originality/value This paper shows the context-specific antecedents of service modularity and the usage of modular thinking in managing healthcare logistics.