Horizon scanning the healthcare supply chain: People, process, technology matterFuture Famers forecast the order in which they should be prioritized for optimal outcomes
Generally, there are three primary equations for designing, leading and managing an effective, efficient and successful healthcare supply chain
Promoting people as key value providers in new roles
Promoting technology as options to explore
Promoting process improvements that use people and technology.
Short of hedging, playing it safe and positing that all three matter (of course they do), you likely will start with one, regardless of your multidisciplinary thinking, and use the other two to bolster and buttress the entire package.
So, with which do you emphasize initially and build your operation around? Do you:
Invest in tech, and train people to use it so that they improve processes (Tech, People, Process)
Invest in process improvement planning, assembling the tech for people to use (Process, Tech, People)
Invest in people to plan process improvements and use tech to ensure progress (People, Process, Tech)
Interestingly among Future Famers, in this age of fascination with technology, the leading strategy chosen is investing in people, followed closely by investing in process and then investing in technology.
Here are the motivations and philosophies behind the ranking. There are no "right" answers to this exercise, only creative and unique perspectives, each of which can and do work within respective environments. (See the "Leadership Philosophy" chart.)
Hierarchy of needs
"Never forget the power of the human touch. In healthcare we take care of people, and we innately want caring, compassionate people around us as patients. As much as our world is leaning into technology to lead the edge, and make our lives more efficient, things like AI cannot replace a human's capacity to express empathy, compassion, or integrity. People are the secret sauce to having a high performing supply chain team. They are the heartbeat of a supply chain and embody the culture of an organization. They alone form the team that collectively drives collaboration and shared experiences to promote innovation and transformation. From there, processes and technologies blossom and operationalize what the people have envisioned for the organization."
Angie Bruns, MHA, Future Famers Class of 2024, Senior Director, Spend Management and Administration, The University of Kansas Health System, Kansas City, KS
"Too often we leap to technology as the answer for poor personnel management and poorly designed processes. Without capable, engaged, and accountable leaders and teams creating and driving processes, teams will not have sufficient time and attention to make improvements. Without a good understanding of process, hospital operations, and the variables and factors contributing to process decisions, even the most advanced technology will not be utilized well. People create the process framework that ultimately is the foundation for technological improvement. But without people, neither process nor technology will be used effectively."
Jason Hays, Future Famers Class of 2015, System Director, Purchased Services, Bon Secours Mercy Health, Cincinnati
"Tech deployment without solid process development as a backbone only further creates chaos in a complex working environment. While the people investment is also critical, by investing in the first two you actually promote an environment for the people to thrive. Messy processes and inefficient tech create frustration and dissatisfaction for the human users of the process."
Kate Polczynski, MBA, CMRP, Future Famers Class of 2016, Vice President, Enterprise Supply Chain, Geisinger, Danville, PA
"People always [come] first, although I'll say you need to understand your org and strategy to know the type of people you are looking for. More and more an ability to connect technology and process is critical for leaders. Once you have the right people you need to focus on your key problems to solve. If you have a problem well defined, then developing processes / solutions to those problems is realistic and feasible. You'll have a hard time solving a problem you can't really define. Maybe you will get lucky. Finally, once you know what you need to do to solve the problem, you can really assess technology that best supports that goal and how to ensure it helps your people succeed vs. is something they fight with every day."
Eric Tritch, Future Famers Class of 2015, Senior Vice President, Supply Chain & Support Services, and Chief Supply Chain Officer, UChicago Medicine
"When examining all three of these (people, process, tech), I think it's important to consider how organizational culture and other extenuating factors play a role in your decision- making. To build a successful equation that works for your department and your organization takes thoughtful scrutiny of the current state of your operating environment and how you envision its success moving forward. For example: If you have little to no budget for new tools and technology, but you can hire one critical role in the department, this person can help you be the visionary that enacts real change which leads to process improvement ideas. This then allows you to create a use case scenario and an ROI for acquiring new tools and technology to promote transformational excellence."
Rachel Anderson, Future Famers Class of 2023, Vice President, Supply Chain, DCH Health, Tuscaloosa, AL
"For now, it's still about people first. But the type of 'people' really matters a lot. They must have the humility to understand that people are completely unreliable! So, they must design processes and deploy technologies that make the right thing to do the easy thing to do."
Nate Mickish, Future Famers Class of 2015, Vice President, Strategic Sourcing, Texas Health Resources, and President, OnHand
"Always start with people. Get the right people on your team and let them show you how to succeed. While I am a huge proponent of great technology and great processes, I know that they are useless in the hands of the wrong staff."
Jack Koczela, Future Famers Class of 2020, Director, Sourcing & Transformation, Supply Chain, Froedtert ThedaCare Health, Milwaukee, WI
"Ensuring that technology is reliable, efficient, and accurate is crucial for its successful implementation. Inviting end users to participate in the process, such as through user testing, is an excellent approach to gather feedback and validate the chosen technology.
"By involving end users in the testing phase, you can gain insights into how the technology performs in real-world scenarios and whether it effectively solves the identified challenges. This user-centric approach helps to ensure that the technology meets the needs of the end users and drives efficiencies within your organization.
"It's important to take the time to build a dedicated team to support the implementation of new technology. This team should consist of individuals who have the expertise and knowledge to develop, test, and provide ongoing support for the technology. Rushing into a new technology without the proper team in place can lead to suboptimal results and may not fully address the needs of all users.
"By following a thorough and inclusive process, you can avoid the risk of adopting a tool or technology that only a few find useful. Taking the time to involve end users, build a capable team, and conduct user testing will help ensure that the chosen technology meets the needs of your organization and drives long-term efficiencies."
Jessica Hurd, Future Famers Class of 2019, Senior Director, Spend Management, Vizient Inc., Irving, TX
"People have to come first. If you don't have the right people, it doesn't matter how great the process is or what latest and greatest tech you have. You must have people who work as a team to achieve the goal, the processes and technology should complement the team and provide the tools necessary to do the work more efficiently. Once you have the right people, there must be a manual repeatable process, if you don't have that, introducing technology will only add problems not solutions. Technology comes last to automate processes and enhance the outcome."
Corey Schmidt, CMRP, MBA, Future Famers Class of 2024, Assistant Director, SHS Operations & Spend Management Integration, The University of Kansas Health System, Kansas City, KS
Why people matter
Once Future Famers shared their philosophies, Leaders & Luminaries homed in on each of the three components, asking them to delve deeper into their points of view. First up is people.
Future Famers were presented with six options from which to choose as many as they felt relevant, but to rank their top three and explain why. They also were given "other" as an option to add something that they felt should have been listed. (See the "People Matter" chart.)
Crisis/Critical Action Team(s) that specialize in selected areas with senior-level support and ad hoc/multifunctional members akin to military models
Internal liaison(s) with distributor, GPO and/or manufacturer to track inventory access, consumption, levels and locations
Dedicated sourcing managers per clinical service line or product category
Dedicated demand planning specialists
Data/readiness/systems analysts and/or scientists
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain
Angie Bruns, MHA, Future Famers Class of 2024, Senior Director, Spend Management and Administration, The University of Kansas Health System, Kansas City, KS
Data/readiness/systems analysts and/or scientists. "In every good supply chain question, there is a subset of data out there waiting to be used to drive the conversation, ultimately achieving a decision. Data must be accurate, and available. Without those two definitions, data can be cumbersome, leading to more questions and concerns. Placing the right people in the right places to not only mine the data, but understand the data promotes trust in the information which ultimately can drive conversations towards improvement in patient care, operational efficiencies, and positive economic stewardship."
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "After you have the right people providing accurate and available data, you need the people who build relationships with clinicians to drive changes in supply utilization. Plugging in clinicians to be part of the supply chain team provides a well-rounded approach during crucial conversations with our end-users. Adding a physician leader to the team further drives engagement, trust, and thought leadership for the team holistically. This physician leader can be leveraged to connect with other providers on difficult conversations but can also educate their peers on the importance of the business side of healthcare. They provide a peer-to- peer connection in which no other supply chain team member has."
Dedicated demand planning specialists. "Finally, as we strive to preserve and improve upon our finances, healthcare has found and executed on the low hanging fruit. There is only so much price you can negotiate out of a product or a contract. Healthcare systems must look behind the price to achieve savings in operations and utilization of products and services. Providing team members with a dedicated focus based upon data and systems to plan for inventory needs help in improving operational efficiency, but also provides a wealth of knowledge to leverage end-user discussions on what, how, and when they use those products. By having the right inventory available and by using the right quantity, healthcare systems reduce variance in product utilization which ultimately promotes patient safety and quality care."
Jason Hays, Future Famers Class of 2015, System Director, Purchased Services, Bon Secours Mercy Health, Cincinnati
Data/readiness/systems analysts and/or scientists. "Most healthcare supply chains do not establish data as a primary outcome of their processes. It is important to not only have the internal data expertise, but also drive the operational changes necessary to yield the desired data. Operations, Sourcing, and other healthcare supply chain teams spend a large portion of their time chasing data.
Dedicated demand planning specialists. "Dedicated support teams are invaluable in establishing the systems and process necessary to yield the analytics and information for decision making. 3. Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "Clinical integration teams help both caregivers and supply chain align around the shared vision of providing excellent care for our patients by representing the needs of caregivers and patients to supply chain and, conversely, sharing how supply chain can effectively meet those needs to caregivers."
Kate Polczynski, MBA, CMRP, Future Famers Class of 2016, Vice President, Enterprise Supply Chain, Geisinger, Danville, PA
Dedicated sourcing managers per clinical service line or product category.
Dedicated demand planning specialists. "Investment in data analytics expertise and supply chain depth supports much of the above, such as the category management elements of our work, demand planning, etc."
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "Clinicians included in supply chain roles are critical to a progressive supply chain function."
Eric Tritch, Future Famers Class of 2015, Senior Vice President, Supply Chain & Support Services, and Chief Supply Chain Officer, UChicago Medicine
Dedicated sourcing managers per clinical service line or product category. "This is a fundamental of supply chain to have sourcing teams that really understand the categories and markets and the needs of their customers."
Data/readiness/systems analysts and/or scientists. "Data is also fundamental to understanding the business and driving improvement, and you need folks focused on that who both understand the data and data quality and how to get at the necessary data."
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "This goes with the first one. Whether or not clinicians report into the supply chain, you need clinical partners who understand the needs of the patients and clinical team to define requirements so you don't waste money on things or risk quality issues based on incorrect specifications and needs."
Rachel Anderson, Future Famers Class of 2023, Vice President, Supply Chain, DCH Health, Tuscaloosa, AL
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "Having a clinical connection serving as a part of your supply chain staff allows you to go beyond the day-to-day realm of general med/surg commodity type items, reaching instead for physician preference items (PPI) that require thorough research and clinical expertise. Having the voice of a clinician as a part of your team not only builds trust, but it can help to close the gap traditionally held between administration and your physicians, nurse managers and team leads delivering front-line patient care."
Internal liaison(s) with distributor, GPO and/or manufacturer to track inventory access, consumption, levels and locations. "Now more than ever, it's important to establish relationships with your supply chain partners such as your distributors, GPO and/or manufacturers to track inventory across the globe. Seemingly more complicated since the pandemic, organizations are defining new roles and expectations for a comprehensive review of where products and raw materials are sourced and manufactured in order to stay ahead of potential supply disruptions in the marketplace."
Data/readiness/systems analysts and/or scientists. "We've all heard the saying 'garbage in, garbage out (GIGO).' It's no longer enough to have someone that can produce canned, limited reports from our software systems and export them to excel in a cute 'nice and neat' pivot table. Instead, we need to be challenging our status quo when it comes to the quality of our data and the parameters we use to define a systematic review of that data. Having a data analyst or true data scientist will push us further towards the goal of transformational excellence, compelling us to be antecedents of organizational change."
Nate Mickish, Future Famers Class of 2015, Vice President, Strategic Sourcing, Texas Health Resources, and President, OnHand
Data/readiness/systems analysts and/or scientists. "We're at a point now where we know more about our supply expenses, what drives them, savings opportunities, etc. than ever before. Our new challenge is focusing on the right work. The right work isn't just a function of spend and pricing, but also of service line health/development, organizational readiness, emerging technologies, migration of care, etc. A proper data infrastructure (i.e. enterprise data warehouse, data governance, workforce enablement, etc.) and a relatively small team of capable data scientists can create tools that nudge our category management team toward the highest value work."
Crisis/Critical Action Team(s) that specialize in selected areas with senior-level support and ad hoc/multifunctional members akin to military models. "Supply chain at THR has been imbedded in the weekly system safety briefing and the high-reliability culture at THR for nearly a decade now. This paid off huge dividends during the recent pandemic. With increasing global instability, keeping these muscles conditioned and strong will be very important."
Dedicated sourcing managers per clinical service line or product category. "We've had a category management structure in place for eight years at THR and is supports value analysis, clinician engagement, etc. In my opinion, it's the best way to manage the supply chain from stakeholder to supplier. It is good to have a healthy mix of clinical and non-clinical people. Our biggest challenge is keeping people in these roles because the best ones have plenty of opportunities to move elsewhere in the system and sometimes to the manufacturer."
Jack Koczela, Future Famers Class of 2020, Director, Sourcing & Transformation, Supply Chain, Froedtert ThedaCare Health, Milwaukee, WI
Other: Continuing to recruit, train and promote excellent talent. "Our needs as an organization will continue to change over time. Any given structure may not be the right one for the challenges ahead. We need great talent and bench strength to succeed
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "Again, for a clinically integrated supply chain, it is vital to have clinician leadership."
Dedicated demand planning specialists. "The demand planners of the future should also be able to react to disruptions, shortages, and backorders."
Jessica Hurd, Future Famers Class of 2019, Senior Director, Spend Management, Vizient Inc., Irving, TX
Dedicated sourcing managers per clinical service line or product category. "Category management, supported by dedicated sourcing managers, is a valuable approach that enables subject matter expertise for suppliers, products, equipment, and services specific to each service line in a healthcare organization. Not all contracts are created equal, and having dedicated sourcing managers for different categories allows for a deeper understanding of the unique requirements and nuances within each service line. These managers can develop expertise in their respective categories, stay updated on industry trends, and negotiate contracts that align with the specific needs of the service line."
Dedicated demand planning specialists. "Demand planning specialists play a crucial role in supporting health systems during critical outages caused by product shortages, global supply chain disruptions, raw material shortages, backorders, or other failures to supply. By closely monitoring inventory levels, collaborating with suppliers, and leveraging data-driven insights, demand planning specialists can proactively identify potential shortages, develop contingency plans, and implement strategies to ensure continuity of care. Their expertise helps the health system respond effectively to supply chain challenges, minimize disruptions, and maintain the availability of essential products and equipment."
Data/readiness/systems analysts and/or scientists. "Data analysts are invaluable members of the supply chain team as they provide insights and intelligence across every aspect of the product lifecycle. By leveraging data analytics tools and techniques, data analysts can identify trends, uncover cost-saving opportunities, optimize inventory management, and drive value for the organization. Data analysts enable evidence-based decision-making, identify areas for process improvement, and contribute to the overall success of the supply chain team."
Corey Schmidt, CMRP, MBA, Future Famers Class of 2024, Assistant Director, SHS Operations & Spend Management Integration, The University of Kansas Health System, Kansas City, KS
Data/readiness/systems analysts and/or scientists. "Clean standardized data is the key to future automation. Without a focus on automating manual tasks, you will spend all of your time being reactive rather than proactive."
Clinical connections through value analysis/management by having clinicians actively serving on supply chain staff, including a physician as Medical Director of Supply Chain. "Relationships between clinicians and supply chain is key to driving negotiations with suppliers and gaining trust that everyone is working to provide the best care for the patient. I believe organizational culture dictates if a physician is best served in supply chain."
Internal liaison(s) with distributor, GPO and/or manufacturer to track inventory access, consumption, levels and locations. "I believe the key to solving many of the supply shortages and backorders is to have a more transparent supply chain with all parties. We need to work together to reduce waste and be proactive to market volatility."
Why processes matter
Next up is process. Future Famers were presented with 14 options from which to choose as many as they felt relevant, but to rank their top three and explain why. They also were given "other" as an option to add something that they felt should have been listed. (See the "Processes Matter" chart.)
Establish, maintain clinical integration with operations/physician relationships through value analysis and management
Sustainable projects/programs, eco-friendly sourcing, contracting, purchasing, recycling and disposal
Rely more on local suppliers and vendors
Enable more visibility into distributor stock-on-hand and, if possible, visibility into production and raw materials access
Set up a customized color-coded "priority" list for products based on clinician demand/usage cross-referenced by access/availability
Set up a category assessment list for product requests based on general and specialty product attributes compared to contract and formulary access
Adopt and implement supply data standards on all product packaging from bulk down to the each
Work with primary suppliers and vendors to manage local/nearby centralized service centers to maintain "safety"/segmented stock
Develop your own centralized service center (CSC)
Partner with a nearby "competitor"
Maintain remote management aligned with telehealth capabilities (e.g., linking clinical and operational services for "hospital-at-home" and remote care options)
Angie Bruns, MHA, Future Famers Class of 2024, Senior Director, Spend Management and Administration, The University of Kansas Health System, Kansas City, KS
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Healthcare supply chain is not a silo. To make the right decisions for our patients, and for our organizations, supply chain must provide the right data, the right people and the right setting for open dialogue and crucial conversations. Through these means, the best decisions can be made which provide our patients and end users with the right products, the right quantity, at the right price, in collaboration with the right clinician and in alignment with the right supplier."
Control/eliminate non-contract/off-contract/shadow purchasing. "First and foremost, controlling non-contract spend reduces variation in product utilization which positively impacts patient care. When supply chain teams achieve clinical integration, one of the next steps is to partner with those end-users to review and drive down non-contract spend. When this is achieved, not only is patient care positively impacted, but operationally and economically organizations are as well. Operationally, staff are aware and trained to supply devices which are available and should be used. Economically, supply chain is negotiating and driving down costs on products which should be used by our end-users. It is a win for each pillar of clinical integration: clinical, operational, and economic stewardship."
Other: Creation and management of critical products and substitute product formularies. "During the pandemic, we all learned the impact of a compromised supply chain. What did we learn? In supply chain, we learned to ask questions around where our suppliers were manufacturing and are they diversifying their manufacturing locations both globally and nationally? We learned you need to have a robust supply chain team who would execute on bringing only FDA approved products in-house for utilization. We also learned about the chaos that ensues when a new product is brought into an organization without communication and proper training. For that reason, the next supply chain standard that should be established is a national repository of critical products and a robust repository of substitute products for healthcare. In an industry where a product backorder could result in a patient not receiving the care they need; this process should be at the forefront of our industry's minds."
Jason Hays, Future Famers Class of 2015, System Director, Purchased Services, Bon Secours Mercy Health, Cincinnati
Adopt and implement supply data standards on all product packaging from bulk down to the each. "The lack of data standards prevent progress in nearly every area of healthcare supply chain."
Set up a category assessment list for product requests based on general and specialty product attributes compared to contract and formulary access. "If I am interpreting correctly, categorizing products and services into logical groupings that reflect the caregivers' needs and environment helps supply chain partner with the caregivers."
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "True clinical integration that balances the needs of caregivers and patients with the supply chain strategies is an invaluable resource for both the healthcare organization and healthcare supply chain."
Kate Polczynski, MBA, CMRP, Future Famers Class of 2016, Vice President, Enterprise Supply Chain, Geisinger, Danville, PA
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Supply chain in a healthcare environment requires deep partnership, alignment and respect across the enterprise. The best contract can only deliver value if there is alignment for its use. Supply chain engagement should expand beyond analysis, also including utilization optimization, for a total expense impact."
Adopt and implement supply data standards on all product packaging from bulk down to the each. "All systems depend upon accurate data elements — forecasting, analysis, etc."
Other. Establish mechanism for awareness and communication to alert caregivers and/or patients of product disruption, including backorder, recall, discontinuation."
Eric Tritch, Future Famers Class of 2015, Senior Vice President, Supply Chain & Support Services, and Chief Supply Chain Officer, UChicago Medicine
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Clinical integration is pretty fundamental to success in healthcare supply chain. Nothing new here, but still paramount and an area to always focus."
Adopt and implement supply data standards on all product packaging from bulk down to the each. "Data standards are important and still a lot of work by providers, manufacturers, distributors and governmental agencies to get this right where it can help us reduce waste and improve safety and resiliency."
Maintain remote management aligned with telehealth capabilities (e.g., linking clinical and operational services for "hospital-at-home" and remote care options). "Sites of care is continuing to evolve, with an aging population there is no way everyone can be cared for in hospitals, and that isn't what patients want anyone and often isn't the safest option. We need ways to effectively bring care to home or other settings for the near future."
Rachel Anderson, Future Famers Class of 2023, Vice President, Supply Chain, DCH Health, Tuscaloosa, AL
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Clinical integration with operations/physician relationships through value analysis and management as a standard would help to break down and eliminate the barriers that exists between these groups and foster better communication, leading to more timely decision-making. As harmonious change agents we would be more in tune with organizational goals and objectives, freeing up additional time and resources for promoting patient-centric care."
Enable more visibility into distributor stock-on-hand and, if possible, visibility into production and raw materials access. "Enabling more visibility into distributor stock-on-hand and, if possible, visibility into production and raw materials access could help alleviate hoarding and bottlenecks within the healthcare supply chain on a global level. It would help to rebuild trust among our supplier/vendor partners and allow for further transparency in the product selection/decision-making process."
Set up a customized color-coded "priority" list for products based on clinician demand/usage cross-referenced by access/availability. "Setting up a customized color-coded 'priority' list for products based on clinician demand/usage cross-referenced by access/availability, would ensure that our supply chain department was able to source and secure the products our clinicians need most to provide optimal patient care, taking us from a reactive to a more proactive state. Once established, it would free up additional resources that could be spent making sure we have enough of these critical 'priority' products on hand to support current demand."
Nate Mickish, Future Famers Class of 2015, Vice President, Strategic Sourcing, Texas Health Resources, and President, OnHand
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Physicians and clinicians will always be the most important stakeholders in the work we do. We've already engaged both meaningfully in our contract and category management work, but we've only scratched the surface. We've focused a lot on product/vendor selection. The next horizon is engaging them for meaningful change in product utilization variability. We have the tools; we need our culture to catch up."
Enable more visibility into distributor stock-on-hand and, if possible, visibility into production and raw materials access. "The healthcare supply chain has long been notoriously and purposefully opaque. That needs to change. There are tools and datasets already available to get us part of the way there. But we need true partnerships to go from seeing problems in advance to doing something about it."
Maintain remote management aligned with telehealth capabilities (e.g., linking clinical and operational services for "hospital-at-home" and remote care options). "I see this as a pathway of getting closer to the where the consumer of healthcare is naturally, while also addressing the deployment and utilization of our capital assets."
Jack Koczela, Future Famers Class of 2020, Director, Sourcing & Transformation, Supply Chain, Froedtert ThedaCare Health, Milwaukee, WI
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Clinical integration is foundational. Supply chain exists to serve the clinical enterprise and we must be aligned to the clinical strategy of the organization. This will drive most of the other processes."
Set up a category assessment list for product requests based on general and specialty product attributes compared to contract and formulary access. "Strong category management strategy will also drive strategy areas such as better inventory management, pricing strategy, etc."
Control/eliminate non-contract/off-contract/shadow purchasing. "Controlling 'off- contract' spend for me is less important than expanding the span of control of supply chain. If we have great supply chain processes, we should offer this expertise to the rest of our organizations."
Jessica Hurd, Future Famers Class of 2019, Senior Director, Spend Management, Vizient Inc., Irving, TX
Control/eliminate non-contract/off-contract/shadow purchasing. "Standardization to contracts is a key aspect of generating value from a group purchasing organization (GPO) perspective. Off-contract spend, which refers to purchases made outside of negotiated contracts, can create a misalignment between an organization's goals for value and savings and individual or departmental preferences for specific brands or products. By leveraging the power of standardized contracts, GPOs can consolidate purchasing volumes, negotiate favorable pricing, and ensure consistency in product quality across the organization. This helps drive cost savings, improve operational efficiency, and maintain alignment with organizational goals."
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "The relationships between the supply chain, value analysis, and physicians are crucial in driving standardization efforts. Collaboration and alignment among these stakeholders are essential to achieve sustainable change in the healthcare supply chain. Supply chain professionals work closely with value analysis teams to evaluate products, assess their clinical and financial impact, and make informed decisions regarding standardization. Engaging physicians in this process is vital, as they play a significant role in selecting and prescribing products. By involving physicians in discussions about standardization and demonstrating the value of standardized approaches, organizations can gain their support and drive successful implementation."
Adopt and implement supply data standards on all product packaging from bulk down to the each. "By adopting industry-wide data standards, healthcare organizations can overcome challenges related to UOM discrepancies, pricing inconsistencies, and data integrity, leading to improved interoperability and more efficient supply chain operations. It requires collaboration among multiple healthcare systems, GPOs, and industry stakeholders to establish common standards, harmonize data, and drive consistency in product identification, pricing structures, and data exchange."
Corey Schmidt, CMRP, MBA, Future Famers Class of 2024, Assistant Director, SHS Operations & Spend Management Integration, The University of Kansas Health System, Kansas City, KS
Adopt and implement supply data standards on all product packaging from bulk down to the each. "Establishing data standards makes it much easier to have actionable data you can trust. Most data we use today for decision making is directional at best and requires manual manipulation which brings a level of risk."
Establish, maintain clinical integration with operations/physician relationships through value analysis and management. "Establishing a rapport with clinicians is very important to accomplish many of the goals supply chain has. If you aren't meeting with clinicians/physicians regularly and including them in product discussions this may be priority one."
Enable more visibility into distributor stock-on-hand and, if possible, visibility into production and raw materials access. "No one has all of the answers. Gaining different perspectives from all stakeholders can create a more efficient process and build better relationships. Data standardization can help automate these processes and visibility."
Why products matter
The last option is products. Future Famers were presented with 19 options from which to choose as many as they felt relevant, but to rank their top three and explain why. They also were given "other" as an option to add something that they felt should have been listed. (See the "Products Matter" chart.)
Cloud-based software for virtual ERP to virtual MMIS to virtual item masters to virtual physician/surgeon preference cards, etc.
Cybersecurity (e.g., apps, hardware, software)
Demand management/predictive analytics software
Drones
Internet of Things (IoT)/Machine-to-machine (M2M) interoperability
Mobile devices/techn (e.g., multifunctional smartphones for clinical, operational tasks)
Robotic Process Automation (RPA) (including advanced dashboards, using "bots" to accomplish basic, mundane and routine tasks and automatic reorder points)
Angie Bruns, MHA, Future Famers Class of 2024, Senior Director, Spend Management and Administration, The University of Kansas Health System, Kansas City, KS
Cybersecurity (e.g., apps, hardware, software). "Cybersecurity is my No. 1 ranked standard as it is foundational in keeping healthcare supply chain safe and removing risks to patients, staff and facilities. Without cybersecurity tools and resources in place, all other technology platforms may be at risk. We have seen attacks cripple not only healthcare organizations, but many industries globally. Each of us contributes to keeping our organizations safe and protected when it comes to cybersecurity, and for this reason, it claims the No. 1 rank."
Demand management/predictive analytics software. "Healthcare does not have a limit to whom it serves. For those reasons, leveraging technology to help us predict what inventory we will need and then marry that with solutions to help us order effectively is pivotal. There is no standard on how organizations manage their inventory or how they order supplies. If these were in place, the upstream effects for our suppliers, and the downstream effects for our end-users and patients would all reap the benefits. This standard would not only positively impact our own supply chain teams, but each of those we serve and those who serve us."
Robotic Process Automation (RPA) (including advanced dashboards, using "bots" to accomplish basic, mundane and routine tasks and automatic reorder points). "Supply Chain is an innovative department within healthcare. These teams solve problems and generate new ideas daily. To accomplish their goals, standards should be in place which can remove ineffective processes that do not produce value. This is where RPA comes into place. This technology serves as a solution to automate repetitive tasks, providing valuable time back for idea generation, testing those ideas, and executing them. By leveraging RPA as a standard workflow, best-in-class processes could be established and rolled out across the entire healthcare supply chain industry."
Jason Hays, Future Famers Class of 2015, System Director, Purchased Services, Bon Secours Mercy Health, Cincinnati
Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes). "The lack of standard product identification is a significant barrier to progress in automation and technology improvements. Nearly all of the rest rely on data standards to function."
Demand management/predictive analytics software. "The primary goal of all healthcare supply chains should be to ensure caregivers have the products and services necessary to provide excellent care to their patients."
Robotic Process Automation (RPA) (including advanced dashboards, using "bots" to accomplish basic, mundane and routine tasks and automatic reorder points). "To enable people to focus on transformational ideas, the existing work must be accomplished as effectively and efficiently as possible. Automating the mundane tasks that bog down our teams is a critical factor in this."
Kate Polczynski, MBA, CMRP, Future Famers Class of 2016, Vice President, Enterprise Supply Chain, Geisinger, Danville, PA
Cloud-based software for virtual ERP to virtual MMIS to virtual item masters to virtual physician/surgeon preference cards, etc. "Having the ability to analyze all aspects of the supply journey through reliable, modern technology increases the bench strength of the entire supply chain. From purchase through billing/patient payment, the ability to accurately connect this data is critical."
Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes). "To best optimize use of your assets, you must know what you have and where they are. This could be equipment, supply, staff or patients."
Cybersecurity (e.g., apps, hardware, software). "To enable an environment to 'work anywhere' since supply chain work is now expanding outside the hospital walls, an enhanced focus on cybersecurity protections within key applications and devices is critical. With an increased existence of bad actors who have recognized the value of healthcare data, the risk in this space increases exponentially."
Eric Tritch, Future Famers Class of 2015, Senior Vice President, Supply Chain & Support Services, and Chief Supply Chain Officer, UChicago Medicine
Artificial intelligence (AI). "AI is a broad category, but I'm really excited about smart analytics leveraging generative LLM to ask questions of data and be able to drill into insights without having to develop new codes and queries."
Automated product dispensaries (e.g., closed cabinetry, open/weight-based cabinetry/carts). "[For] automated dispensaries, we really need to continue to evolve tech that takes away the burden and inaccuracies around inventory management, and supply documentation and charging. I'm thinking cameras. A lot of wasted effort and cost still in this area along with bad data. AI can't do much for us with bad or incomplete data."
Cybersecurity (e.g., apps, hardware, software). "This is just too scary around the threats in this space to our digital businesses."
Rachel Anderson, Future Famers Class of 2023, Vice President, Supply Chain, DCH Health, Tuscaloosa, AL
Cloud-based software for virtual ERP to virtual MMIS to virtual item masters to virtual physician/surgeon preference cards, etc. "If cloud-based software for virtual ERP to virtual MMIS to virtual item masters to virtual physician/surgeon preference cards, etc. were standard this would allow healthcare supply chain departments to be able to reduce the noise and bad data associated with multiple interfaces. It would streamline our visibility and should allow for better, faster and more concise decision-making."
Demand management/predictive analytics software. "If demand management/predictive analytics software was a regular line-item budgeted and approved by our organization(s), it would arm us as leaders with the best transparency and visibility into the inner-workings of our day-to-day operations to mitigate disruptions and help to repair our fragmented healthcare supply chain ecosystems.
Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes). "Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes) are still cost prohibitive for a number of organizations, especially those in rural/smaller settings. In addition, processes have not been sufficiently mapped out to definitively prove that an organization may be able to quickly recoup the costs of adopting new technology such as RFID/RTLS. If this were widely diffused as standard practice, we would have the benefit of transforming our supply chain operations at a fraction of the state of our current costs."
Nate Mickish, Future Famers Class of 2015, Vice President, Strategic Sourcing, Texas Health Resources, and President, OnHand
Artificial intelligence (AI). "Every supply chain leader needs to understand how they can use AI in their work. They don't need to know how to build LLMs or deeply understand linear algebra and vectors. But they do need to have a mental map of the tech stack that enables these technologies and a firm grasp on the capabilities. This will help them identify the problems that can be solved with these tools."
Cybersecurity (e.g., apps, hardware, software). "Every tech advance will be stunted unless this issue is addressed."
Other: Tools to bridge the physical/digital divide. "I'm going to cheat and collapse a few categories (e.g., IoT, robotics, RFID, self-driving, etc.) into what I'll call 'Tools to bridge the Physical/Digital divide.' Any tool/technology that reduces labor risk (e.g., availability of people and skill sets) by either automating physical tasks or expanding the capacity of the current workforce is going to be an important development for a safe, reliable and sustainable healthcare system."
Jack Koczela, Future Famers Class of 2020, Director, Sourcing & Transformation, Supply Chain, Froedtert ThedaCare Health, Milwaukee, WI
Cybersecurity (e.g., apps, hardware, software). "I consider cybersecurity to be required/foundational for all of these other technologies. Can you imagine unsecured self- driving vehicles!?"
Artificial intelligence (AI). "Artificial intelligence must be considered due to its rapid development and ability to disrupt our processes. While we often think of AI for data models, we should also be able to deploy it for things like LLM-based customer self-service."
Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes). "Tracking and tracing will help supply chains to create the data infrastructure required for strong capabilities such as AI, RPA, predictive analytics, etc."
Jessica Hurd, Future Famers Class of 2019, Senior Director, Spend Management, Vizient Inc., Irving, TX
Cybersecurity (e.g., apps, hardware, software). "Cybersecurity is a top priority in healthcare to protect patient information and ensure the secure delivery of care. The sensitive nature of patient data and the potential impact of breaches make it crucial to implement robust cybersecurity measures. This includes measures such as encryption, access controls, network monitoring, and regular security assessments to identify and address vulnerabilities."
Tracking and tracing — bar coding, RTLS (e.g., RFID, infrared, ultraviolet), Bluetooth, Near-field communication, etc.) and smart labels (e.g., QR codes). "Tracking and tracing is another area where healthcare can benefit from improved adoption. This technology, which has proven effective in other industries, enables the tracking and tracing of products and supplies throughout the supply chain. It provides visibility into the movement of goods, helps identify inefficiencies, and enables proactive management of inventory levels. By implementing tracking and tracing systems, healthcare organizations can improve efficiency, reduce waste, and enhance patient safety."
Robotic Process Automation (RPA) (including advanced dashboards, using "bots" to accomplish basic, mundane and routine tasks and automatic reorder points. "Robotic Process Automation (RPA) is a valuable tool for creating efficient workflows in healthcare supply chain management. RPA involves automating repetitive administrative tasks, such as data entry and report generation, using software robots. By delegating these tasks to RPA, employees can focus on more strategic and value-added activities that align with their roles. RPA can streamline processes, reduce errors, and improve overall productivity in the supply chain."
Corey Schmidt, CMRP, MBA, Future Famers Class of 2024, Assistant Director, SHS Operations & Spend Management Integration, The University of Kansas Health System, Kansas City, KS
Cloud-based software for virtual ERP to virtual MMIS to virtual item masters to virtual physician/surgeon preference cards, etc. "The ERP is the source of truth for supply chain. If you don't have that as a solid foundation, then it makes it much more difficult to achieve success with many of these other technologies."
Automated product dispensaries (e.g., closed cabinetry, open/weight-based cabinetry/carts). "Gaining inventory visibility and automating the replenishment at the point of use creates labor efficiencies and more accurate utilization data. It is a logical next step to create efficiencies after having an efficient ERP."
Robotic Process Automation (RPA) (including advanced dashboards, using "bots" to accomplish basic, mundane and routine tasks and automatic reorder points). "Standardized data in your ERP and POU allows for RPA and many of the other advanced technology options. While there are many products and buzzwords out there, it all comes back to having the data in a usable format for the technology to be beneficial."