The COVID-19 pandemic showed how weak healthcare supply chains are. Hospitals, clinics, and medical offices found it hard to get important supplies like personal protective equipment (PPE), ventilators, and key medicines. The shortages were caused not just by higher demand but also because many supply chains depended on international suppliers and just-in-time inventory, which left little room for unexpected problems.
Healthcare leaders saw that old ways of handling supply chains did not work well during crises or sudden demand increases. Because of this, many U.S. medical facilities have started to rethink how they get supplies and manage their inventory to be better ready for future problems.
One important lesson from recent supply problems is the value of skilled workers managing the supply chain. Richard Bagley, Chief Supply Chain Officer at Penn State Health, says healthcare groups must hire and train people with skills in supply chain management, data analysis, and smart purchasing. Even the best technology cannot do well without capable staff.
Also, supply chain management is now seen as a strategic goal, not just a normal job. Healthcare organizations that give proper tools and decision power to supply chain teams can make better choices, move faster, and talk more smoothly with suppliers.
Because depending on foreign suppliers was risky during the pandemic, many healthcare groups started working with local or nearby suppliers. This helps avoid shipping delays, problems with customs, and risks from global events.
Using suppliers based in the U.S. or close regions makes the supply network more varied. When there are several suppliers, the risk goes down if one stops working. Having backup suppliers or local manufacturers helps medical offices keep enough supply during busy times.
Just-in-time and Lean inventory methods have been popular for cutting waste and costs. But these methods can leave hospitals without enough supplies if shipments are delayed because inventory is kept very low. Experts suggest healthcare providers review these methods by adding better records, using forecasting tools, and monitoring systems.
In the U.S., this often means mixing old inventory methods with computer systems that use artificial intelligence to predict when demand will go up or supplies may run low.
Technology is very important in modern supply chain work. Data analytics tools help healthcare groups track their supply levels in real time, watch how suppliers perform, and guess future needs.
Michael Schiller from the Association for Health Care Resource & Materials Management (AHRMM) says sharing information between healthcare providers, manufacturers, and distributors is very important. When everyone sees how much is used, they can better understand demand and cut down on waste.
Data analysis also helps hospitals make smarter buying decisions. By studying past patterns and outside factors, they can avoid running out of supplies or having too many extras.
In Africa, some healthcare companies use artificial intelligence to improve how they manage supplies. For example, Viebeg’s AI platform connects over 850 hospitals in East and Central Africa with suppliers to make deliveries more reliable. This idea might help U.S. hospitals with many locations link their purchasing teams directly to manufacturers or distributors using AI systems.
Another example is Gifftid Ltd’s AI-based Clinical Research Co-op model. It shows how sharing resources and data between groups can improve supply chain results. U.S. medical practices and health systems could try similar ways to share information on supply availability and best buying methods.
One big advance in supply chain work is using AI tools and workflow automation. These technologies help communication flow better, lower human mistakes, and make operations more efficient.
AI systems can study large amounts of data from many sources, like order history, usage rates, and market conditions, to predict what supplies will be needed. This lets healthcare groups change orders and stock levels early to avoid shortages or extra supplies.
Workflow automation makes daily office and admin tasks in supply chains easier. For example, automated systems can track orders, process invoices, talk to suppliers, and send alerts when supplies need to be restocked. This frees staff to work on more important tasks like negotiating with suppliers or checking quality.
Simbo AI is an example of how AI can handle phone calls with suppliers and staff. They offer smart answering services that send calls to the right person without delays caused by human operators. This helps answer procurement questions and urgent supply requests faster and improves teamwork.
AI virtual helpers can also send reminders, check if orders are on time, and spot problems in how supplies are used. This helps catch possible supply problems early.
U.S. healthcare groups are starting to see supply chain management as more than just a cost. It is now a key part of delivering good patient care and running operations well. Improving supply chain work means investing in skilled people and technology that give better visibility, predictions, and quick responses.
Using community resources and sharing unused space also helps build stronger supply networks. For example, hospitals with extra storage could be used as local supply centers during emergencies.
Knowing that investing in supply chain skills and AI systems cuts costs and raises patient safety should encourage healthcare leaders to put these areas first.
As supply chains get more complex, healthcare workers in this area are in higher demand. Healthcare groups need to create programs to keep good workers and help them grow their skills. Meanwhile, automation can reduce boring, repetitive work, letting staff spend more time on tasks that need judgment and teamwork.
With skilled staff and better technology, U.S. healthcare systems can build supply chains that not only bounce back from problems but also work better every day.
For medical managers, owners, and IT staff, the path forward is clear: invest in both people and technology. Having well-trained supply chain workers leads to better management and planning. At the same time, using AI tools and workflow automation makes operations more accurate and clear.
As healthcare organizations get ready for future challenges, whether expected or not, focusing on these investments helps keep care going, lowers costs, and supports the health system overall.
By focusing on these points, healthcare organizations in the United States can make supply chains stronger, clearer, and more efficient to support good patient care now and later.
COVID-19 has exposed the fragile nature of the health care supply chain, highlighting long-standing vulnerabilities that necessitate improvements to ensure adequate supplies during crises.
Health care leaders are advised to forge new relationships with onshore and near-shore suppliers or invest in reliable companies that can provide necessary supplies during peak demand.
There is a greater need for bidirectional transparency and sharing of utilization data among health care providers, manufacturers, and distributors to improve overall supply chain efficiency.
Organizations must reevaluate just-in-time and Lean inventory-management strategies to better document, monitor, and predict product needs, especially during demand surges.
Key strategies include tapping into community resources, diversifying the supply chain portfolio, and reassessing idle capacity within the organization.
Elevating supply chain management as a strategic initiative is essential for facilitating better decision-making and investment to navigate disruptions in the health care sector.
Effective supply chain management requires investment in talent, advanced systems, and data analytics to enhance decision-making and operational efficiency.
Current demands are significantly impacting the health care workforce, necessitating adjustments in supply chain strategies and workforce management approaches.
The AHA Transformation Talks series offers insights and discussions among health care leaders on transformational topics to help navigate disruptive changes in the sector.
The AHA Environmental Scan and SHSMD’s Futurescan provide insights and implications for health care trends, guiding organizations in adapting to new challenges and opportunities.
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