Insights by Ray DeMelfi & Bryan Gillard | Trusted Advisors in Healthcare Supply Chain Optimization
Healthcare Distribution at a Crossroads
Healthcare supply chains are under pressure. Consolidation, labor constraints, rising costs, and growing service demands are forcing health systems to rethink their logistics and distribution strategies. Executives are being asked to deliver higher service levels, lower total cost of ownership, and greater supply chain flexibility—often without the right technology infrastructure or data-driven visibility to support it.
At Hy-Tek Intralogistics, we’ve helped leading health systems navigate these challenges. In one case, a post-merger supply chain had to reconcile conflicting workflows, technology stacks, and manual practices across its network. The result? A compelling need – and opportunity – for end-to-end modernization.
The New Reality for Healthcare Supply Chains
Healthcare supply chains have always been complex, today’s healthcare logistics leaders are grappling with:
- Supply chain consolidation that introduces inconsistent practices and systems
- Manual distribution processes that increase labor costs and error rates
- Data fragmentation that obscures SKU velocity, order profiles, and peak demand trends
- Demand volatility driven by seasonal, demographic, or regulatory shifts
Without modernization, these challenges increase cost-to-serve, delay fulfillment, and reduce operational control.
Data-Driven Supply Chain Transformation
The journey to a modernized healthcare supply chain starts with data.
Analyzing order history, SKU velocity, item master data, and daily volume trends unlocks powerful insights:
- Order profiling reveals inefficiencies tied to order size and volume mix.
- SKU analysis identifies which products drive most of the picking and replenishment activity.
- Volume trend mapping helps forecast resource needs and identify constraints.
With these insights, leaders can model future-state distribution scenarios and make investment decisions with confidence.
Modeling the Future: From Assessment to Action
Once the “current state” is understood, the next step is mapping a more scalable, cost-effective future:
- Current-state modeling forecasts space, labor, and throughput under today’s constraints.
- Future-state modeling showcases how automation and orchestration reduce cost and increase throughput.
- Business case development justifies capital investment, highlighting metrics like:
- 15–20% internal rate of return (IRR)
- $2M+ in annual labor savings
- 28% footprint reduction
This reframes automation from a capital expense into a strategic investment in operational scalability and healthcare service delivery.
Right-Sized Automation for Healthcare Distribution
Not all healthcare supply chains need the same level of automation. The right solution depends on network complexity, growth trajectory, and patient-driven service requirements:
- Light automation: packing stations, put-to-light, mobile workstations
- Mid-level automation: case-pick modules, AMRs, robotic sortation
- High automation: ASRS, goods-to-person systems, robotic picking
The key is flexibility. Healthcare networks must be able to absorb acquisitions, adapt to SKU proliferation, and scale as demand grows.
Execution That Delivers Results
A great design is only half the story. Flawless implementation ensures service levels are maintained as systems evolve.
Hy-Tek helps healthcare supply chains succeed with:
- Phased execution plans and change management support
- Software orchestration through our IntraOne® platform, integrating WMS, WES, WCS, and TMS into one real-time control layer
- Ongoing support to ensure continuous improvement and system evolution
IntraOne provides real-time warehouse orchestration, helping healthcare organizations eliminate silos and operate with end-to-end visibility.
Lessons from Leading Health Systems
From experience with complex healthcare environments, we’ve seen that success hinges on:
- Collaborative, data-driven planning
- Standardizing units of measure (UOM) across business units
- Selecting automation partners with proven healthcare execution
- Aligning systems design with clinical service goals and growth strategy
A Smarter, More Agile Future
Modernizing the healthcare supply chain isn’t just about reducing costs. It’s about building resilience, agility, and service reliability to support better patient outcomes.
At Hy-Tek Intralogistics, we help healthcare leaders:
- Build the roadmap
- Justify the investment
- Execute transformation with confidence
Our end-to-end expertise in strategy, warehouse software, automation technologies, and lifecycle support makes us a trusted partner to healthcare networks across North America.
Ready to Take the First Step?
Let’s talk about how your healthcare distribution network can evolve. Schedule a network assessment or visit our Innovation Lab to see advanced automation, robotics, and orchestration software in action.
Contact Us to modernize your supply chain with confidence.
