“Arrested Development:” Why Healthcare Supply Operations Can't Get Past the Firefighting

As a Supply Chain Leader, do you feel like your team moves from one persistent challenge to the next every day? Are you being asked to justify your operations and costs while simultaneously managing a series of ongoing crises? Is a lack of control and visibility preventing you from tackling the strategic work that would truly move your organization forward? This is not an uncommon experience in healthcare supply chain operations, but it is not universal. No hospital runs without challenges, yet it is possible to operate a materials and supply chain environment that is busy, but smooth and well managed.

We will break down four factors that can contribute to an “arrested development” of your supply chain maturity. These factors can prevent you from delivering your best service possible.

One of the first signs of a persistently challenged supply chain is a limited understanding of how operations are performing throughout the day. If you cannot measure your operation, you cannot effectively implement changes that improve it. If you believe your team is doing a good job, you should be able to clearly quantify why. For example:

• My team maintains a 98% fill rate.
• The operations run within 10% of my maximum capacity target.
• Our inventory put away team consistently meets a three-hour cycle time from pick to put.

What are your operational metrics? How well are your suppliers and distributors meeting their service levels and expectations? Knowing and measuring your operations is the first step in understanding performance and in anticipating when problems are developing.

Do you routinely meet with your major departments and join nursing collaboration sessions? Do you have an effective way to cascade critical information to frontline staff? How structured and collaborative is your PAR review process?

Poor communication increases the effort required to manage emerging issues and often leads to a negative perception of the supply chain team. When information is unclear or delayed, supply problems compound and shift attention toward perceived failure rather than partnership.

Connecting with customers means more than closing communication gaps. It requires understanding each unit’s needs, schedules, and workflows, and establishing a continuous improvement loop that addresses challenges early before they grow into larger operational issues.

Stepping in during a crisis, resolving a critical problem, and enabling patient care is a high-stakes responsibility. It is exhausting but also invigorating, and it can create a hero effect that motivates individuals to jump into action again and again. While this drive is valuable, it cannot stand alone. Effective operations require the discipline to pause after the crisis and reflect on what happened.

Does your team stop to complete a formal root cause analysis after an issue is resolved?

Do you ask what happened, why it happened, where the breakdown occurred, how communication flowed, and what changes are needed to prevent recurrence? Without this reflection, problems repeat and the organization remains trapped in reactive work.

Healthcare often rewards leaders for putting out fires, while the quieter work of preventing problems goes unnoticed. High-performing leaders who consistently avoid crises can be overshadowed by those who are praised for resolving issues that should not have arisen in the first place.

On the surface, everything in your department may appear to be working fine. Products are being received, supplies are flowing to patient care units, and the day is considered successful when nothing remains to be picked or put away. These are the basics of a supply chain operation, and completing them is essential. However, doing the basics well is not the same as running a high-performing operation.

The real questions are whether the work is being completed cost effectively, whether labor resources can be justified, and whether the operation can expand to deliver more value to the health system. Can your team improve satisfaction for both materials management and nursing? Can you generate additional productivity beyond routine daily tasks?

Every supply chain operation needs a two-tier strategy: one tier focused on completing the daily work, and a second tier dedicated to continuous improvement that advances the organization and strengthens the bottom line. If you cannot identify at least three strategic objectives that drive meaningful value beyond day-to-day operations, it is time to conduct a thorough self-evaluation and engage your key stakeholders.

Operating in perpetual crisis mode can be expensive, inefficient, stressful, and undermines confidence in supply chain. When teams spend their time repeating the same mistakes, progress slows and organizational trust erodes. Advanced supply chain organizations break this cycle by building visibility, discipline, and strong clinical partnerships that keep issues from escalating and tipping the operation into crisis response mode.

For many health systems, the fastest way to achieve this shift is with a trusted logistics partner. Canon Business Process Services brings proven operational frameworks, scalable labor models, and the expertise needed to stabilize operations and elevate performance. Canon can help your team reduce firefighting, eliminate inefficiencies, and create a supply chain that supports clinical care rather than reacting to it. As your operational needs evolve, Canon provides the flexibility to right-size staffing, introduce best practices, and sustain long-term operational excellence.