Executive Insights

One definition of Supply Chain is “the entire network of people, organizations, resources, and activities involved in creating and delivering a product or service, from sourcing raw materials to delivering the final product to the customer.” Notice the beginning words of “network of people.” Supply chain is all about working with people – building relationships.

The healthcare supply chain world is very dynamic involving people from IDNs, suppliers, distributors, GPOs and many other areas. Relationships of the people within these entities are very dynamic and important. Data, analytics, and processes provide information for PEOPLE to make decisions. Strong relationships in this ecosystem deliver measurable results. Healthcare supply costs can represent a massive portion of operating budgets, and optimized collaboration in partnerships can reduce supply spending by up to 10%. Large IDNs often manage well over 1,000 vendors, making relationship oversight essential.

I’m impressed with the importance of building good relationships. Building relationships is a fundamental driver of professional and personal success, acting as a force that contributes to collaboration, mentorship, and new opportunities.

It doesn’t matter if you are a buyer, seller or other third party; working with people is critical. But knowing someone and working with others is different than having GOOD relationships. With good relationships you learn, share, and respect each other. In practice, these relationships drive real outcomes: better forecasting, joint demand planning, faster innovation adoption through value analysis committees, and greater agility during disruptions. During the COVID-19 pandemic, organizations with pre-existing trust-based partnerships navigated shortages far more effectively through rapid information sharing and alternative sourcing than those relying solely on contracts.

I’m surprised by how many people don’t stay with just one organization or in one part of the healthcare industry. Relationships are crucial in transitioning careers and building friendships. Strong connections improve trust, enhance communication, and increase efficiency, often leading to better career opportunities and business growth. This is especially valuable given how fluid the industry is—strong networks not only ease career transitions but also yield efficiency gains, including examples of 98% on-time payments, significant rebate increases, and reduced administrative burdens through collaborative platforms.

I have many friends in the industry and am very impressed with the positive relationships that exist between healthcare partners. I’ve known a few people who don’t like to go to industry meetings, share their ideas, and network. Those people think they have all the answers and are closed-minded to the ideas of others. This is wrong. Doing anything alone is tough. Isolation is costly. Surveys show persistent supply challenges post-pandemic, with many teams spending 10+ hours weekly on shortage mitigations and facing case cancellations. Teams that actively build relationships report higher commodity availability, lower costs, fewer medical errors, and better patient outcomes.

Strong relationships build friendships. In the 1930s, Dale Carnegie wrote a book that is still sold today called “How to Win Friends and Influence People.” It’s one of the best-selling books of all time. His teaching is that to have friends you need to be a friend. These principles remain as relevant today as in the 1930s, especially in an industry where trust is repeatedly cited as the single most important ingredient for successful supply chain management.

I am thinking of one person in the industry who is a great example of building relationships and being a friend to many. This is Carl Meyer. He is the President of the Wetrich Group. Everyone knows Carl. He treats everyone like they are his best friend. Carl’s approach of treating everyone this way across distributors, GPOs, IDNs, and beyond has earned him widespread respect, including induction into the Bellwether League Healthcare Supply Chain Hall of Fame. His career trajectory itself demonstrates how genuine relationships create influence and opportunities.

And finally, I like the quote “Good relationships keep us happier and healthier.” Beyond personal well-being, strong relationships deliver professional success: improved efficiency, innovation, resilience, and ultimately better care for patients. In healthcare supply chain, technology and data are powerful—but they amplify human collaboration rather than replace it. So for improved success and better lives, let’s keep building strong relationships.