Collaboration Between Clinicians and Supply Chain Leaders Essential for Healthcare Management

At Scripps Health, collaboration between clinicians and supply chain leaders has proven essential for effective healthcare management, especially in the face of recent challenges. This collaborative approach has been pivotal in areas such as value analysis and standardization initiatives, improving the organization's ability to respond to supply chain disruptions.

The Role of Clinicians in Supply Chain Management

Clinicians at Scripps Health play a critical role in supply chain decision-making processes. Their involvement is particularly important in value analysis and standardization initiatives, where their expertise helps ensure that the products and services selected meet clinical needs while maintaining cost-effectiveness. This collaborative approach has been crucial for the organization's successful supply chain management, especially during challenging times.

During the coronavirus pandemic, Scripps Health faced significant supply chain challenges, including shortages of raw materials, specialty products, and basic items such as syringes and basins. To manage these shortages, the organization engaged directly with nurses and clinicians to identify suitable substitutions when primary manufacturers were unable to meet demand. This strategy helped mitigate the impact of supply shortages and ensured continuity of care.

Moreover, Scripps Health has engaged in discussions with vendor partners to develop strategies for offsetting supply cost increases. This proactive approach, combined with the involvement of clinicians, has allowed the organization to navigate the complexities of modern healthcare supply chains more effectively.

Leveraging Technology and Governance in Supply Chain Management

In addition to clinician involvement, Scripps Health utilizes a group purchasing organization, HealthTrust, to access a wide variety of supply and service standardization opportunities at negotiated rates. The organization has also established a clinical value analysis governance structure, chaired by physician leaders, with a clinical team composed of nurses from various specialties. This team works closely with service line leaders to review supply utilization data specific to their areas of expertise, ensuring that supply chain decisions align with clinical goals.

Allina Health, another major healthcare provider, is modernizing its supply chain strategy by moving from a decentralized to a centralized sourcing model. This shift focuses on governance and technology-driven efficiencies. Half of large health systems now have a Chief Supply Chain Officer (CSCO) to oversee these initiatives.

Standard operating procedures have been implemented for better sourcing at Allina Health, with a non-labor governance group overseeing spending. Purchases exceeding $200,000 require centralized review, ensuring fiscal responsibility and alignment with organizational goals.

The Impact of Artificial Intelligence on Supply Chain Management

Artificial intelligence (AI) is playing an increasingly important role in healthcare supply chain management. AI technologies, such as predictive analytics and autonomous agents, are being used to automate routine operations, enhance efficiency, and forecast supply chain disruptions. At Allina Health, AI automates invoices and contract matching, and predictive AI is used to forecast potential supply chain issues.

AI agents have demonstrated the ability to handle routine operations, such as processing orders, answering inquiries, and analyzing inventory data. These agents integrate with existing systems, allowing for incremental implementation and immediate efficiency gains. Companies report reduced time spent on scheduling tasks and improved exception resolution speed as a result of AI integration.

Furthermore, higher employee satisfaction has been observed as workers can focus on more critical thinking tasks rather than repetitive calculations. Emerging trends in AI agents in supply chains include collaborative agent networks and enhanced learning capabilities. Successful implementation of AI agents requires stakeholder involvement from the beginning, including employees who will work alongside these systems.

Addressing Misconceptions and Future Developments

As supply chain management continues to evolve, addressing misconceptions and educating stakeholders about new technologies is essential. A webinar scheduled for June 11, 2025, will discuss the top eight myths surrounding Electronic Data Interchange (EDI) in supply chain management. The webinar will highlight how cloud-based EDI solutions can transform supply chain operations, using real-world examples to illustrate the benefits of modern EDI solutions.

The healthcare industry is increasingly recognizing the need for integrated and efficient supply chain management strategies that involve both human expertise and technological innovation. By fostering collaboration between clinicians and supply chain leaders and embracing new technologies, organizations like Scripps Health and Allina Health are better equipped to navigate the complexities of modern healthcare, ensuring quality care and operational efficiency.