Ryder System, Inc., listed on the NYSE as R, and BJC Health System of St. Louis, Missouri, have received the prestigious SMI Tom Hughes Collaboration Award for their work in transforming the healthcare supply chain to enhance patient care and streamline product delivery. The award, presented annually by SMI, a nonprofit organization of healthcare providers and industry partners, recognizes partnerships that demonstrate innovative solutions and drive significant improvements in healthcare logistics.
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Jane Pleasants, President of SMI, stated that the collaboration between BJC and Ryder represents a model example of patient-focused supply chain innovation. She highlighted the combination of BJC’s forward-thinking leadership and Ryder’s operational expertise as a partnership that delivers meaningful results in a rapidly evolving healthcare environment.
BJC Health System’s East Region identified inefficiencies in traditional supply chain processes in 2019 that diverted clinical staff from patient care. To address this challenge, BJC partnered with Ryder, seeking a third-party logistics provider capable of creating a more efficient, patient-centered distribution model. Tom Harvieux, Senior Vice President and Chief Supply Chain Officer at BJC, explained that the team wanted to implement innovative practices inspired by mature industries like automotive and technology. He added that their transformation journey began in December 2020, during the height of the COVID-19 pandemic, which underscored the need for agility, speed, and resiliency in healthcare logistics.
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Ryder led the design and launch of a 416,000-square-foot Consolidated Services Center, centralizing supplier channels and providing scalable support for future growth. The facility, equipped with automation and advanced systems, supplies critical care materials around the clock to BJC East Region’s 14 hospitals, 3,300 beds, and 4,600 physicians. Within its first year, the center achieved 87 percent service levels, processing approximately 13,000 medical supply lines daily. Ryder also developed highly sequenced deliveries to prioritize critical supplies at hospital loading docks.
The implementation of Ryder’s warehouse management system and RyderShare platform enables real-time inventory control, demand planning, and collaborative problem-solving, ensuring uninterrupted patient care even during emergencies such as the 2024 Hurricane Helene IV fluid shortage. The partnership also reduced capital expenses for BJC while providing full visibility and control over inventory and direct sourcing.
Key outcomes include hospital order fulfillment rising from 90 percent to over 99 percent, on-time and in-full rates increasing from 27 percent to 75 percent, order processing costs dropping by 80 percent, nursing unit service levels exceeding 98.5 percent, inventory-on-hand reduced by 25 days, and complete end-to-end inventory visibility. Cherie Brinkerhoff, Ryder Senior Vice President of Supply Chain Solutions, noted the seamless collaboration between the teams, emphasizing that the work impacts real patients. She added that every team member, from frontline associates to executives, is driven by the purpose of improving patient care and saving lives.
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