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The World Economic Forum (WEF) is similarly concerned with the problem of silos, noting in an article, titled “Silos in healthcare are bad for us—Here’s the cure,” that—although the ideal health care model envisions patient-centered care with specialists sharing information under a general practitioner's oversight—structural, economic and practical constraints gum up the works quickly, a problem exacerbated by primary care physicians’ overwhelming workloads and increasing burnout. The WEF concludes that breaking down silos is the right medicine, as demonstrated by a Boston program for kidney failure patients that reduced hospital admissions and generated cost savings of twice the program's operating expenses.

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HCI’s focus on digitalization, patient access, supply security and sustainability expands on this idea. In short, the organization’s goal is to ensure cross-silo communication and consistent access to essential medicines while also reducing environmental impact.

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Emerging technologies are the key to the modern health care supply chain, Derecque-Pois says, with digital twins, blockchain and AI-driven analytics essential to enabling better demand forecasting and helping prevent shortages. “Supply chains rely heavily on aggregated and time lag data nowadays,” she says. “Through-market demand is very difficult to calculate, especially when there is some strain on the health care system.”

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Potential approaches to improve demand forecasting include developing AI-powered tools for dynamic and accurate predictions; creating a stakeholder platform for data exchange and dashboards to visualize aggregate demand patterns, helping prevent overstocking or shortages; and leveraging demand signals (prescription trends, patient behavior, etc.) to enable better predictability. Derecque-Pois adds that integrating digital twins into demand forecasting systems could further optimize stock levels, improving both efficiency and accuracy across the supply chain. In fact, digital twins could revolutionize health care supply chains by enabling real-time product traceability and environmental monitoring from manufacturing through patient delivery.

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Current medicine stockpiling practices, based on static legal mandates, often lead to inefficiencies and waste. According to Derecque-Pois, a modernized approach would combine distributed storage strategies, using central hubs for primary packaging and active pharmaceutical ingredients (APIs), while maintaining smaller country-level stockpiles for secondary packaging. The system she anticipates would be powered by AI-driven inventory management and real-time monitoring, which would enable dynamic redistribution based on demand. Key components include rotational stockpiling using First Expired First Out (FEFO) principles, equitable distribution protocols to prevent hoarding during emergencies and vendor-managed inventory systems for manufacturer oversight.

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Looking ahead, Derecque-Pois sees the sector moving into an era in which data will transform the health and wellness landscape. Software as a medical device technology already enables supply chains to gain insights into people's health, she says, while Web3 and emerging Web4 technologies promise even greater advances in patient-centric care and supply chain management. Web3 technologies, built on blockchain and decentralized systems, are transforming health care supply chains by facilitating secure, transparent tracking of pharmaceuticals from manufacturer to patient (and combating counterfeit drugs). Web4 technology takes this a step further by integrating physical and digital worlds through AI and machine learning, enabling sophisticated predictive analytics for demand forecasting and supporting the growth of personalized medicine.

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But technology comes with an environmental cost. With over 70% of emissions in the life sciences and health care sectors emanating from supply chains, sustainability is an increasing priority—and not just for HCI. According to the 2024 Global Biopharma Sustainability Review, only 17% of companies believe they’re able to accurately measure Scope 3 emissions—the indirect greenhouse gases created across the value chain from upstream and downstream supply chain activities, including product distribution, goods and services delivered via outside providers, waste disposal, investments, leased assets, and employee commuting and business travel. As a result, HCI advocates for regulatory convergence to standardize and simplify compliance with environmental, social and governance (ESG) objectives.

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According to Derecque-Pois, solutions include switching from air to ocean freight whenever possible, honing inventory management, and consolidating deliveries into fewer and more efficient routes. “In some city centers, there are up to five deliveries a day, which can be optimized to reduce the carbon footprint,” she says. Environmental initiatives extend to packaging, with companies developing eco-friendly alternatives and enacting more effective waste management systems through improved return logistics. Because perfection is too often the enemy of good, however, Derecque-Pois emphasizes the health care sector's push toward sustainability requires a delicate balance between maintaining reliable medical supply chains and reducing environmental impact, thus making the standardization of emissions tracking and reporting imperative to measure progress and identify areas for improvement.

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Proposals HCI is exploring include creating a standardized tool kit to measure and report an organization’s carbon footprint, especially Scope 3 emissions. The tool kit would feature a shared platform where suppliers store and reuse emission calculations to avoid redundant data requests. Another option is digital twin technology that would incorporate carbon footprint data to provide comprehensive environmental impact visibility across the supply chain.

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Still, when it comes to the supply chain, hiccups and outright crises are inevitable. To weather everything from a labor shortage to a spike in demand, a hurricane or pandemic, health care organizations should focus on risk diversification and strategic stockpiling, Derecque-Pois says, adding that successful companies prioritize transparency, invest in sustainable technologies and have robust contingency plans in place. The bottom line? “It’s always better to adapt than react.”

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