Hospital supply chain leaders are calling for strategies to future-proof supply operations, reduce uncertainty and protect patient care amid rising costs.
Here are responses from five supply chain leaders who were asked: What innovations or operational changes is your health system exploring to future-proof its supply chain?
Motz Feinberg. Vice President and Chief Supply Chain Officer at Cedars-Sinai (Los Angeles): Cedars-Sinai Health System is exploring end-to-end supply chain collaborations from providers to manufacturers. By leveraging techniques developed and successfully demonstrated in many industries outside of healthcare, we are building capabilities around demand and supply planning that stretch well beyond our Los Angeles campus. By collaborating with key distributors and manufacturers as well as exploring opportunities with other healthcare providers, we are finding ways to improve fill rates, reduce working capital and reduce uncertainty in the supply chain.
Derek Imars, PharmD. Executive Director of Pharmacy Supply Chain at Indiana University Health (Indianapolis): We are building on our strong drug shortage response foundation, which includes dedicated staff, clear communication and robust data tracking. To future-proof our pharmacy supply chain, we are focusing on three key areas: advanced data utilization, proactive critical product management, and strategic allocation programs. We believe accurate and enhanced data is our most vital tool; we are exploring new technologies that not only provide real-time inventory and utilization insights but also integrate global-, economic- and weather-related factors to forecast potential disruptions more effectively. Furthermore, establishing a systemwide critical pharmaceutical product list allows us to shift from retrospective to prospective shortage mitigation, ensuring patient care remains uninterrupted and reducing caregiver burden.
Finally, we are leveraging our Pharmacy Integrated Service Center to implement proactive pharmaceutical allocation management. This involves securing critical product allocations, both internally and with vendor partners, for several months in advance. This strategy guarantees access to vital medications during shortages, enhances emergency response, reduces waste, improves cost management, and protects revenue by minimizing procedure cancellations. By combining our foundational strengths with innovative technology, a strategic critical product list, and proactive allocation programs, we are better equipped to navigate and mitigate the clinical and operational challenges of drug shortages.
Meena Medler. Chief Supply Chain Officer at Sutter Health (Sacramento, Calif.): In response to industry-wide challenges such as shifting reimbursement models, rising costs and workforce dynamics, Sutter Health is embracing innovation to build a more resilient, efficient and agile supply chain. These efforts allow the organization to seize opportunities that enhance operational excellence and support the continued delivery of high-quality care.
1. Tiger teams: Inspired by NASA, Sutter Health has created “tiger teams” to enhance operational excellence. These teams consist of experts who focus on securing products and managing supply disruptions through sprints. The sprints include establishing well-defined deliverables over 30, 60 and 90 days to drive incremental improvements.
2. Stock control department: This department acts as a strategic hub to proactively help manage and mitigate supply disruptions including medical supply buyers, analysts and logistics experts. The aim is to enhance stock control precision and improve distributor integration. This will lead to better inventory management across facilities and warehouses, laying the foundation for a “control tower” approach by leveraging upstream demand signals and informing predictive back-order reports.
3. Predictive back-order reports: These reports help monitor inventory levels and flag potential shortages, allowing for timely interventions.
4. Innovation technology advancements: Sutter Health’s supply chain is collaborating with technology partners, industry experts and clinicians to explore new technologies while the organization continues to build a strong foundation. AI and analytics will enhance visibility and enable proactive decision-making, thereby boosting supply chain efficiency and reducing costs.
5. Sustainable practices: Sutter Health is moving toward a more transparent, resilient and sustainable supply chain by developing and implementing standard best practices, streamlined processes, and improved inventory management through the newly created supply chain excellence team.
John Mikesic. Executive Director of Supply Chain at University of Missouri Health Care (Columbia): To future-proof our supply chain, we’re pursuing a range of strategic innovations and operational improvements focused on transparency, automation, and stronger integration with enterprise functions.
We’re exploring the use of bill-only automation software to streamline implant and procedural billing, while upgrading our crash cart platform to enhance readiness and inventory control. We’re also advancing our dashboard capabilities beyond traditional med-surg supplies to include deeper visibility into all non-labor expenses.
Operationally, we’re phasing out third-party inventory management within perioperative services in favor of more accountable, internally managed models. At the same time, we’re increasing collaboration with our business planning and strategy teams to better align sourcing efforts with growth and service line priorities. Finally, we’re broadening our internal RFP processes to bring competitive discipline and measurable cost savings to all categorized medical product categories — not just capital or high-spend items. We are additionally going live with an AI-enhanced contract lifecycle management platform that automates and streamlines the creation, negotiation, approval, and tracking of contracts to improve compliance, efficiency and visibility across the enterprise.
Sarai VanderWood. Vice President of Supply Chain Operations at Corewell Health (Grand Rapids and Southfield, Mich.): To future-proof our supply chain at Corewell Health, we are investing in scalable and adaptable goods-to-person automation at the new Consolidated Service Center we are establishing in Wyoming, Michigan. This automation enables us to safely and accurately increase throughput, improve operational efficiency and respond swiftly to evolving demands and growth without major disruptions. The system also optimizes vertical space utilization, allowing us to expand capacity without expanding our footprint.
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