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Bridging the Gap Between Hospital Supply Chains and Suppliers: Uncovering Mutual Value

In the complex ecosystem of healthcare, the relationships between hospital supply chain, clinicians, and suppliers are critical to delivering quality patient care and addressing spend management challenges. Like navigating an unknown planet, these partnerships require strategy, communication, and trust to survive and thrive. Recent discussions with industry experts highlight key strategies for strengthening these vital connections. 

Transparency and Trust: The Lifeblood of Collaboration 

Historically, many suppliers and hospital supply chains have held their cards close. Yet, in the challenging environment of healthcare where priorities don’t always perfectly align and market dynamics are constantly bringing new levels of urgency, transparency and trust are vital for both sides. 

While organizations may have different objectives, it’s important to find common ground where operational needs are met, physicians can effectively serve their communities and patients, and suppliers can pursue their goals as well.

“We have different objectives, and that’s okay, but if we can’t find a way to be transparent about what we need, then we’re never going to be aligned, and we’re always going to continue to have this misaligned three-legged stool.”

-Allison Corry, Chief Supply Chain Officer at Intermountain Health

Tremayne Ramballie Ives, Strategic Marketing Director at W. L. Gore & Associates, underscores this point, “The key thing here in these discussions is this level of transparency and trust, because we’re both going to be transparent when we have trust. I’m going to share things with you and be vulnerable knowing that you genuinely have my interest at heart, and I have yours.”

This mutual vulnerability allows for honest discussions about challenges and opportunities, leading to more effective and creative problem-solving.

Communication: Bridging the Gap  

Communication gaps remain a core challenge for both hospital supply chains and suppliers. Healthcare supply chains need to be more transparent in their expectations, especially with suppliers. The advancements that have been made on educating physicians about internal processes need to be replicated with the supplier community where gaps in communication remain a challenge.

Suppliers need clear guidance on how to engage, including: 

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The hospital’s unique policies and procedures they’re expected to follow, including for clinical engagement

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Who their points of contact are for specific categories and what channel should be used to escalate if needed

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What healthcare procurement software or new product introduction software the hospital is using

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How the hospital supply chain management process flows, including how decisions are navigated through the value analysis process.

By providing this structure, suppliers have clear vendor insight and will know when to escalate issues, where to seek clinical input, and how to manage expectations. As a result, suppliers are better positioned to maintain compliance and follow hospital policies and processes.  

Value-Driven Business Reviews: A Critical Touchpoint for Partnerships 

In the past, discussions between supply chain and suppliers have often centered around unit cost. However, a more comprehensive approach is gaining traction. 

Allison explains, “We care about quality. We care about outcomes. We care about driving standardization and simplicity. So, how do we bake that into the decision-making criteria?”

This shift towards a holistic view of value allows for more nuanced conversations about Quote Block - Take ownership for your supply chain partnerships product selection and partnership opportunities. The shift towards value metrics also supports strategic business reviews where both suppliers and hospital supply chains come together to have creative, honest conversations about improving bidirectional value. 

These regular business reviews serve as vital checkpoints in the ongoing mission of supply chain partnerships, providing an opportunity to assess progress, address challenges, and plan for future optimization opportunities.

Allison from Intermountain Health emphasizes the importance of driving the agenda and setting clear expectations, “We have an ownership role. I believe that we have to step into owning the agenda, being transparent about what we want to talk about, and setting expectations.” This proactive approach ensures that both parties come prepared to discuss relevant issues and opportunities. 

From a supplier perspective, Tremayne highlights the need for these reviews to be a two-way street: 

“If we come in as suppliers and we’re only talking about those things that are important to us, like sales and performance and reducing past dues and things like that, it’s very one way. We encourage our customers to bring to the table what is important to them. What are their strategic goals? What are those initiatives that they need our support in achieving, whether it’s short-term or long-term?”  

This balanced approach where both parties fully lean into the process allows for a more comprehensive and mutually beneficial discussion. 

Key components of effective business reviews include: 

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Ensure the right people are in the room

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Address product performance

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Explore the contract portfolio

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Review key expectations, goals, and KPIs

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Discuss compliance and behavior

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Address key obstacles and challenges

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Review value and optimization projects

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Understand what’s around the corner

A cheat sheet for successful business reviews with your suppliers

Ensuring the right people are in the room recently came to life in a meaningful way for Intermountain Health. Allison explains how when partnering with a local Salt Lake City manufacturer, her team discovered their products were being unnecessarily shipped to Las Vegas for warehousing before returning to Salt Lake City. By bringing together operational teams from both organizations instead of just sales representatives, they optimized the supply chain by arranging direct pickup from the manufacturer, reducing costs, transit time, and exposure to potential shipping issues. 

This collaborative mindset turns business reviews into opportunities for continuous improvement and strengthens the partnership where curiosity to optimize is never stifled. This mindset should be a core part of conversations—not just focusing on what is currently being done, but also exploring what will be done in the future. By fostering this forward-looking dialogue, both parties are affirmed and valued. As supply chain partners continue to innovate and improve, they create the kind of long-term “stickiness” that many suppliers seek, ensuring sustained collaboration and mutual benefit. 

The Path Forward: Collaboration for Better Healthcare 

As we navigate the complex terrain of healthcare supply chain management and the medical supply industry, the importance that bridging the gap has on resiliency and efficiency cannot be overstated. While many organizations are in the storming phase of this journey, embracing transparency, establishing clear communication channels, and conducting value-driven business reviews provide a path forward.  

This forward-thinking approach to partnerships and supply chain solutions isn’t just about solving today’s challenges—it’s about building resilient, adaptive relationships that will continue to drive value in an increasingly complex healthcare environment and provide a defense against inefficiency, waste, and suboptimal care.  

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