Integrated delivery networks (IDNs) and other healthcare providers are always deliberating on how to make healthcare more cost-efficient. Many organizations have turned their focus to supply chain management. According to some research, this function makes up 40 to 50% of the operating expenses for healthcare systems and hospitals. In healthcare, the supply chain management function has evolved beyond the scope of simply determining how much of each type of supply to purchase and carry in the storerooms. Today, those managers must effectively manage relationships with vendors and companies at the upstream source of products and downstream, to the end users to minimize supply costs and transform the function into a bottom line asset for the organization.