Chris Luoma

Harnessing technology to build resilient supply chains in 2025

January 24, 2025
By Chris Luoma

Healthcare costs are projected to soar to 20% of the national GDP within the next decade, outpacing overall economic growth and intensifying pressure on an already fragile system. With the "low-hanging fruit" of digital transformation already harvested, the healthcare industry stands at an inflection point—one where more advanced technology solutions and greater collaboration are required to unlock the next wave of innovation and efficiency. Several trends promise to reshape healthcare as we look ahead, making it more resilient, efficient and prepared for the future.

Trend #1: The cloud journey continues with a focus on optimization
Over the past decade, healthcare organizations have focused on implementing critical systems like electronic health records and cloud-based enterprise resource planning (ERP) systems. These efforts have laid a solid foundation for digital transformation, but they’ve also ushered in significant questions about what comes next.

For healthcare, the focus is shifting from simply adopting digital platforms to fully harnessing their potential. This new phase is about more than moving to the cloud; it’s about thriving in it. And the urgency to act is growing. By 2026, an estimated 70% of health systems will adopt cloud-based solutions for supply chain management, unlocking benefits like improved demand forecasting, waste reduction and responsiveness. Organizations must strategically leverage cloud capabilities to enhance operational efficiency, elevate user experiences and integrate cutting-edge technologies such as analytics and Artificial Intelligence (AI). By doing so, supply chain leaders and stakeholders can drive smarter, data-informed decisions that optimize costs and improve outcomes.

At the heart of this transformation lies data quality—the linchpin of successful digital initiatives. In 2025, we will see organizations prioritize “getting their data houses in order” by investing heavily in governance, integration and quality improvement. Those who succeed will gain the clarity and insights needed to accelerate cloud strategies and achieve improved outcomes in an increasingly competitive landscape.

Trend #2: Stronger, more collaborative partnerships drive end-to-end supply chain visibility
The COVID-19 pandemic disrupted traditional healthcare supply chain practices, prompting a shift from "just-in-time" (JIT) inventory management to stockpiling supplies, which has proved financially unsustainable. Now, the industry is moving toward a balanced approach that aligns supply with demand to ensure continuity without excess waste or cost. As part of this effort, healthcare supply chain leaders are prioritizing end-to-end visibility to create a resilient ecosystem that operates collaboratively rather than in silos.

In 2025, we expect providers and suppliers to intensify efforts to collaborate and break down data silos to identify and address supply disruptions rapidly. This includes real-time sharing of data and insights, both upstream and downstream, to promote a more synchronized ecosystem. These efforts will result in smarter, data-driven decisions, minimizing the risks of shortages and stockouts while optimizing inventory management to enhance patient care across all settings. Resilience will no longer be an aspiration. It will become the standard for modern healthcare supply chains.

Trend #3: AI will revolutionize the implantable device supply chain
Healthcare organizations have made remarkable strides in automating and optimizing the procurement and management of low-cost, high-volume supplies. Now, attention is turning to the more complex and costly supply chain of implantable devices—a traditionally challenging area due to manual processes and overstocking expirations.

Providers and suppliers increasingly leverage their partnerships to share data and collaborate on solutions. By integrating clinical and procedural data, such as case schedules and implant usage, healthcare organizations can improve demand forecasting, reduce waste and enhance efficiency. These initiatives also encourage clinically integrated supply chain teams to use patient outcomes and implant utilization data to standardize products and improve care quality while lowering costs.

In 2025, AI-driven analytics will further transform implantable device supply chains. For providers, AI will examine usage patterns, costs and patient outcomes to support product standardization initiatives that enhance care quality while reducing expenses. Conversely, suppliers will utilize AI to understand demand trends within their provider networks better, allowing for more strategic production and inventory management planning. This transition to AI-powered analytics will lead to cost reductions and enhance supply chain agility, equipping healthcare trading partners to tackle the unique challenges associated with implantable devices.

Trend #4: Innovative supply chain models emerge for non-acute care settings
The rise of non-acute care settings, such as community-based clinics and home-based care, is reshaping healthcare delivery to meet patient demands for convenience and accessibility. This shift has prompted manufacturers to adapt their supply chain operations to support these new care approaches.

A key area of innovation is aligning inventory management with the specific needs of these settings. For instance, in ambulatory surgery centers (ASCs), where implantable devices are essential, innovative distribution models are emerging to ensure supplies are available when needed, thereby avoiding the inefficiencies of overstocking or expiration. These models aim to optimize inventory, reduce waste and enhance supply chain responsiveness.

By the end of 2025, healthcare providers and suppliers that have successfully implemented innovative supply chain solutions in non-acute care settings will expand these models to additional locations and partnerships. This will not only drive greater efficiency and cost savings but also bolster resilience in the supply chain. As more trading partners adopt and expand these models, the healthcare industry will move closer to a standard of agile, patient-centered supply chain operations.

The healthcare supply chain is at a turning point, leveraging technology to boost resilience and efficiency. Moving beyond basic cloud adoption, success now hinges on collaboration, data quality, and AI-driven analytics to optimize resources and improve outcomes. By aligning innovation with patient needs, healthcare organizations can reduce costs, minimize waste and lead the future of healthcare delivery.

About the author: Chris Luoma is the chief strategy officer at GHX.