On October 16-17, pharmacy leaders and supply chain innovators from across North America convened in Newport Beach, California, for the inaugural Pharmacy Supply Chain Leadership Summit.
Sponsored by RiseNow, Terso and Tracelink, the event tackled the industry’s most pressing challenges. Discussions covered drug shortages and the growing demand for smarter, more efficient systems, with a focus on solutions that safeguard patient care and streamline operations.
If you couldn’t attend, don’t worry. We captured the most compelling insights and key takeaways below.
Communication and collaboration
A key takeaway was the critical importance of communication in pharmacy supply chain. Attendees emphasized the need to break down silos and improve data sharing among healthcare providers, manufacturers and distributors.
By working together, we can reduce inefficiencies and boost visibility, particularly for patients with complex conditions who rely on timely access to medications.
Rising drug costs and margin pressures
Healthcare supply chains are facing increased pressure from rising drug costs and high specialty drug prices that strain margins. Balancing medication expenses with revenue often relies on complex programs such as 340B or GPO contracts.
With insurers capping reimbursements, health systems need to adjust their supply chain strategies to sustain operations while ensuring quality patient outcomes. Ongoing shortages of essential medications complicate matters, as manufacturers prioritize blockbuster drugs. This leaves health systems vulnerable, making it difficult to ensure consistent access to necessary medications.
Supply chain challenges and backorders
Managing backorders for critical items like fluids presents a considerable challenge. Ineffective management systems can lead to panic buying and resource hoarding, further exacerbating shortages. To confront the issue, hospitals need better tracking mechanisms and collaboration across health systems to ensure the balanced distribution of essential supplies.
Perpetual inventory and data challenges
Data silos create substantial obstacles in inventory management. Implementing perpetual inventory systems and using technologies like RFID can bridge these gaps, providing real-time visibility of stock levels. This approach reduces waste and ensures that critical medications are readily available when needed. As patient volumes rise, cooperation between healthcare providers and manufacturers will be vital for addressing inefficiencies and meeting demand.
What AI means for supply chain
Real-time information is critical for managing drug shortages effectively. An AI-driven shortage mitigator could transform how supply chain approaches these challenges, using advanced data analysis to enable faster responses and smarter decisions. Organizations must address concerns about job displacement and data governance to ensure responsible AI integration into supply chain processes.
Technological integration
The summit emphasized the need for improved technology integration in pharmacy services. Real-time inventory management and visibility tools are crucial for reducing reliance on manual processes. A shift toward data-driven decision-making will improve operational efficiency while keeping patient care at the forefront, ensuring effective resource planning and strong ROI on new initiatives.
Sustainability and impact of supply chain on carbon emissions
With more than 60% of healthcare’s carbon footprint stemming from the supply chain, it’s time for organizations to act. Prioritizing local sourcing and optimizing shipments can lead to significant reductions in environmental impact. Strengthening relationships between pharmacy and supply chain teams will align sustainability objectives and promote responsible procurement practices.
Opportunities from CVS and Walgreens closures
The recent closures of CVS and Walgreens pharmacies present both challenges and opportunities for health systems. As these retail giants exit unprofitable markets, health systems have the chance to expand into retail pharmacy spaces. This expansion, however, brings its challenges: Health systems need to be prepared to navigate tighter budgets and reimbursement caps while maintaining high service levels.
Continuing the conversation
The summit underscored the importance of collaboration, technology and data-driven decision-making in pharmacy operations. Communication was a recurring theme, with participants emphasizing its role in managing rising drug costs, addressing backorders and improving supply chain visibility.
Throughout the lively discussions and thought-provoking presentations, it was clear that there is great enthusiasm around advancing pharmacy supply chain best practices. To keep that momentum going, Tecsys is excited to announce another Pharmacy Supply Chain Leadership Summit in spring 2025, where we will continue these important conversations. We hope you can join us.