From robotic process automation to consolidated service centers, supply chain leaders are adopting innovative strategies to cut costs and maximize impact amid mounting pressures.

As health systems continue navigating financial pressure, workforce shortages, and rapid technological change, the relationship between providers and suppliers is evolving. According to Ed Hisscock, AHRMM Board Liaison and retired CSCO, both sides are increasingly focused on tackling entrenched inefficiencies.

“Many providers and suppliers are signaling that conversations about decreasing existing waste in the trade relationship are on the rise,” he said. Some discussions are driven by tariff pressures; others are tied to the opening of new Consolidated Service Centers (CSCs). Either way, they are expanding beyond traditional sales channels to involve supplier Sales & Operations Planning and supply chain leaders. It’s a needed shift, Hisscock noted, because “the health care trade relationship is 10% to 20% higher than other industries” when measured by Selling, General, and Administrative (SG&A) expense.

Key pressures ahead

Hisscock pointed to several challenges supply chain teams are navigating:

• Greater pressure to reduce costs, especially for hospitals facing Medicaid reductions and increases in uncompensated care.
• A worsening shortage of supply chain staff, making the need to “do more with less” even more acute.
• Difficulty “discerning the hype vs value in the proliferation of new emerging technologies like AI and RPA … with fewer resources.”

Best practices taking hold

Despite these headwinds, Hisscock sees promising innovations gaining traction.

“RPA and other forms of automation have emerged as valuable time-saving technologies,” he said. Bots are taking on non-value-added tasks so staff can shift to higher-value work.

AI and machine learning are also growing areas of exploration, though he cautioned that “opportunistic marketing and fledgling start-up wherewithal makes the determination between hype and value difficult.” Leading organizations are responding by developing thoughtful AI strategies and governance policies.

CSCs are another emerging bright spot. While the “path to value is unclear,” Hisscock observed that their rapid expansion suggests they may become “a likely win-win value driver” for reducing trade-relationship costs.

Momentum and new initiatives

Mike Schiller, AHRMM’s executive director, said the spirit among supply chain leaders at the 2025 conference was unmistakable.

“ENERGY!” he said. “This year’s event showcased several new and exciting initiatives.” Among them: curated panel discussions from the Advisory Board, the inaugural meeting of the Independent Link Coalition to support supply chain professionals in rural and safety-net settings, and the Affiliated Chapters Luncheon, which highlighted strong chapter growth. The momentum is continuing post-conference, with dormant chapters reactivating and work underway to launch new ones.

Planning for 2026 is already moving forward, Schiller added, with even more innovative elements expected to “deliver an impactful and distinctive conference experience.”