Feb 01, 2023

Artificial Intelligence and Its Revolutionary Potential within Healthcare Supply Chain Management

  • By JOAN,
Artificial Intelligence and Its Revolutionary Potential within Healthcare Supply Chain Management

Artificial Intelligence is a technological innovation that holds a lot of promise. In fact, in areas such as EduTech and CRM, Artificial Intelligence has helped produce stunning results.

Healthcare Supply Chain Management is another space where Artificial Intelligence holds immense potential. Especially in the times of COVID, when the healthcare industry experienced unprecedented pressure in terms of service. However, this helped recognize a lot of the gaps in the supply chain and the potential of Artificial Intelligence in filling them out.

The question is, how exactly should Artificial Intelligence be used to ensure positive and fortified results in healthcare supply chain management?

Read on to learn more about the application of Artificial Intelligence in healthcare supply chain management.

Predictive Analytics

As an already established area within organizations small and big, predictive analysis is rife with potential for healthcare supply chain management. It can help solve a world of problems. Including:

  • To determine which solutions and commodities boost results.
  • Improve employee management by identifying those who are in danger of experiencing burnout.
  • Assist in the development of improved inpatient care plans
  • Analyze a hospital’s current patient load to forecast supply requirements.

Task Automation

Robotic Process Automation (RPA) is a type of Artificial Intelligence (AI) increasingly employed in healthcare, particularly in claims processing. RPA uses software robots to streamline and standardize repetitive activities, allowing employees to focus on other higher-value jobs.

RPA is being utilized in the supply chain to automate contract-management operations such as pricing checks and populating sourcing strategies with contract conditions.

Furthermore, Artificial Intelligence and automation are already being used to enhance supply chain procedures, including

  • Proactively managing backorders.
  • Locating clinical alternatives.
  • Automating preference card changes.
  • Managing POs and invoices.

Aids in Cost-Cutting

Undoubtedly, one of the more appealing advantages of implementing Artificial Intelligence in healthcare supply chain management is its potential for long-term cost-effectiveness. Integrating enterprise solutions is critical to enabling hospitals and other healthcare institutions to use machine learning to standardize supplies using treatment outcome data.

Artificial Intelligence also enables commodity supply standardization, allowing for deeper analysis of enormous amounts of data and comparing the cost and efficacy of various items.

Healthcare Supply Chain Management can also use Artificial Intelligence to build and update standards in near real-time, allowing doctors to employ methods such as outpatient treatment or choosing out of costly tests if they haven’t been proved to enhance results, especially when other components have already been brought expenses close to the norm.

Matching Patient Care Demands

There is a growing need to match the appropriate product to the right patient as more data on how products function in ordinary clinical settings becomes available. Additionally, treatment plans need to be restructured based on the requirements of particular patient groups.

AI can play an essential role in determining what is best suited for certain types of patients and leveraging this data for value analysis and procurement, ensuring that the appropriate products are available in the right place.

Substitutes During Labor Shortage

healthcare supply chain management also saw a rising shortage of nursing personnel with the advent of the CoVID pandemic.

Hospitals can boost capacity and accomplish more with the people they already have, thanks to Artificial Intelligence and automation.

Artificial Intelligence allows employees to focus on higher-level strategic responsibilities or patient care. Artificial Intelligence can also collaborate with human employees and make their tasks more accessible and effective.

Together, Artificial Intelligence and machine learning enable the workforce to work quicker and smarter while increasing employee happiness and decreasing burnout.

Supplier Management Data

Disruptions in healthcare supply chain management can be a cause of great concern, unlike in retail and other industries. Artificial Intelligence can assist suppliers in anticipating backorders, understanding inventory status, and assisting manufacturers in gathering data.

They can also help navigate the complex supply chains to better foresee delays, take corrective measures, and assist their consumers in identifying alternatives.

Optimizing Logistics Support

AI-enabled patient flow firms can employ techniques routinely utilized by third-party logistics services to map the quickest ambulance routes to transfer patients to hospitals or other care delivery facilities.

These same innovations may also be used to help healthcare supply-chain workers deal with the transfer of care beyond critical care locations.

Artificial Intelligence can assist in determining the ideal transportation modes, frequency, and routes to move both commodities and caregivers to the steadily rising number of sites where they will be required. These sites can range from homes and clinics to emergency treatment and ambulatory surgical centers.

Improved Data Governance

Like many new technologies, there is a lot of buzz about what Artificial Intelligence (AI) can do to enhance clinical, administrative, and financial performance and patient and physician experience. Simultaneously, there has been little conversation around what needs to change to ensure that Artificial Intelligence executes its potential.

Data governance is one of the most overlooked issues. The advantage of Artificial Intelligence is that it can analyze enormous volumes of data to uncover patterns and underlying relationships that humans would take far longer to interpret.

It also enables users to provide the Artificial Intelligence algorithm with a variety of variables, including ones assumed to have some influence on the situation at hand.


Digitization has contributed to the progress of many processes in the healthcare industry. With its introduction in the area of healthcare supply chain management, it stands to advance logistics through analytics, prediction, stock-taking, inventory backorders, data governance, and labor substitution.

Any organization or firm that aims to incorporate Artificial Intelligence into their healthcare supply chain management system needs to study its requirements carefully and implement solutions accordingly. That is because, while it is cost-effective, Artificial Intelligence is a massive one-time investment that needs to be implemented carefully.

But with its range of advantages, it is only fair that the healthcare supply chain system employs it to simplify all processes.

Also Read: How is Artificial Intelligence in Healthcare Shaping Patient Engagement?

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