4 supply chain trends hospital leaders say are overhyped

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AI, supply chain visibility and data dashboards have become major areas of focus for healthcare supply chain leaders. But some executives say the industry’s emphasis on these tools risks overshadowing the operational improvements that actually drive results.

Four hospital supply chain leaders told Becker’s that while emerging technologies and greater access to data offer value, their impact depends on how organizations use them. From AI solutions that promise more than they can deliver to dashboards that generate information without action, the executives pointed to a common challenge: turning technology investments into measurable improvements.

Here are four trends healthcare supply chain leaders say are overhyped — and where they believe organizations should focus instead.

1. Supply chain visibility without coordinated action

Don Barton, chief technical officer and director of supply chain management at Shelbyville, Ind.-based Major Health Partners, said visibility has become one of the industry’s most overhyped priorities.

“Visibility is valuable, but seeing a disruption doesn’t necessarily change how we respond to it,” Mr. Barton said.

When health systems identify the same shortage, they often respond by seeking alternatives, increasing orders or building inventory. Those similar reactions can intensify the disruption rather than resolve it, he said.

2. Autonomous AI

Joe Wilson, vice president of supply chain services and chief procurement officer at New York City-based Montefiore Health System, identified autonomous AI as the most overhyped trend.

Although AI has meaningful applications, he said health systems can often generate greater and more reliable value by improving data integrity, contract compliance, inventory management and clinical standardization.

Healthcare supply chains face complexities that other industries do not, including clinician preferences, patient safety requirements, recalls and the need to maintain uninterrupted care.

“Improving compliance with an existing med-surg commitment program can often deliver more immediate and measurable financial impact than launching a new AI forecasting initiative,” Mr. Wilson said.

He emphasized that organizations with strong operational fundamentals will ultimately be better positioned to capitalize on AI.

3. One-size-fits-all predictive AI

Michael Alfaro, director of materials management at Ventura, Calif.-based Community Memorial Healthcare, said the hype surrounding predictive AI stems less from the technology itself and more from expectations surrounding it.

“The most overhyped trend isn’t the underlying value of predictive AI, but the illusion that a universal, out-of-the-box solution is imminent,” Mr. Alfaro said.

Some health systems are already developing sophisticated predictive models tailored to their enterprise resource planning systems and internal data environments. However, those successes remain highly customized and difficult to replicate across organizations.

Without stronger industrywide data governance and interoperability, he said predictive AI will remain a customized advantage rather than a broadly scalable solution.

4. Dashboards and data overload

Nalin Kulasekara, system vice president of ancillary operations and supply chain management at Springfield, Ill.-based Hospital Sisters Health System, pointed to dashboards as a longstanding source of hype.

Health systems collect enormous amounts of information on sourcing, pricing, contract compliance, inventory, clinical outcomes and transactions. Vendors add even more dashboards, creating an increasingly complex data environment.

Managing those tools can become resource-intensive and contribute to information fatigue without necessarily improving decisions.

“There are dashboards everywhere you go in an organization. It’s great to have these dashboards but very few are actionable,” Mr. Kulasekara said.

Rather than expanding the volume of information available, he said organizations should prioritize fewer, high-impact metrics that provide actionable insights in real time.

“Having visibility into everything doesn’t solve problems,” he said.

Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit

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