The Strategic Voice Defining the Future of Hospital Supply Chains

James Fusco is a strategic sourcing leader who brings together deep procurement experience, strong analytical skills, and a clear understanding of operational priorities. He guides cross-functional teams, strengthens supplier relationships, and advances system-wide reliability while focusing on long-term value and organizational resilience.

In this interview, Fusco outlines how customer service, integrity and disciplined sourcing shape his leadership. His approach strengthens supply reliability and positions Yale New Haven Health for a more resilient, data-informed future.

A Move from Hands-On Roles to Strategic Sourcing

I started my supply chain career during the 2008 recession, supporting warehouse operations on international orders for a skincare company. I was hired mainly for my skills with computers, spreadsheets and databases, and my role grew naturally from there. I became a buyer, then a materials management planner, and eventually a manager. When the business moved from Connecticut to California, I chose not to relocate and joined Yale New Haven Health, where I will celebrate 10 years next week. I began as a capital procurement coordinator, working with a small team to purchase equipment and negotiate pricing. I later became the manager of procurement and then moved into strategic sourcing.

Along the way, I earned my American Production and Inventory Control Society (APICS) Certified in Production and Inventory Management (CPIM) certification, my Certified Materials and Resource Professional (CMRP) certification, and later my Master of Business Administration (MBA). That education and experience helped me grow into a director role where I sit at the connection point between daily operations and higher-level executive decisions.

Today, my schedule reflects that balance. I spend much of my time in meetings to stay informed, support decision-making, and help resolve challenges between stakeholders. I also travel regularly across our five hospitals to stay connected with frontline staff and ensure alignment between system-wide initiatives and site-level needs. My responsibilities include overseeing major agreements such as medical/surgical product distribution and group purchasing organization (GPO) contracts while breaking down barriers so our teams can deliver the level of service our clinicians and patients count on.

A Framework Designed to Counter Healthcare Supply Chain Risks

My foundation in procurement shaped how I lead today, since it taught me that great contracting begins with customer service. In procurement, doing everything right is simply the expectation and anything less becomes an exception. That principle guides my team at Yale-New Haven Health. We execute based on what departments request and fund.

Vendor consolidation is a major setback from a procurement standpoint. Combined with limited alternatives and production concentrated in disaster-prone regions, we often operate at the mercy of the next hurricane or cyber event. These realities reinforce my commitment to service, integrity and clear decision-making across our system.

This is why I approach every vendor negotiation with full transparency and integrity, telling exactly what our customers want. This upfront honesty builds trust, which often translates into positive responses. That philosophy matters even more as supply chain vulnerabilities grow.

AI Use That Drives Real Value

We are advancing technology on several fronts. We have partnered with a startup that uses AI and data analytics to lower periodic automatic replenishment (PAR) levels, predict shortages earlier, and act before any disruption or product unavailability escalates. Early warnings buy time to find alternatives and gives our value analysis team room to vet options.

We carefully select vendors and decide where to deploy resources based on cost, IT security, and data-sharing risk. We work with technology vendors that allow us to modify the tech per our preferences. For instance, we helped shape a vendor scorecard that will turn purchasing data into letter grades and actionable feedback on delivery and quality, with upcoming vendor reports.

One major initiative we launched with our distribution partner focuses on securing a guaranteed fill rate for medical/surgical supplies. The project involves Materials Management, Value Analysis, Project Management, Supply Chain Analytics, Procurement and Demand Management.

Since healthcare requires a large inventory of essential items, “enough” safety stock for more than 100,000 products is unrealistic. We are standardizing products, aligning vendors, routing more items through distribution, right-sizing safety stock, and storing fast movers at our centrally-located regional operations center. The project began recently, and while we are not at our goal yet, a three to five percent fill-rate increase will meaningfully reduce pressure on our clinical and supply chain teams.

Priorities Shaping the Next Era of Sourcing

Over the next three to five years, I expect the industry to continue toward deeper vendor consolidation following greater pressure from Medicare and Medicaid reimbursement. As more patients fall under government payer programs, our dependence on those models affects every sourcing decision. We will work with our clinical partners to keep reducing suppliers and the total number of SKUs so that our hospitals can use more standardized items.

I also see that vendors still prefer traditional face-to-face contracting, which has made our sourcing team more specialized. We still can influence vendors because we bid business out and do the contracting work (redlining, negotiations) in house.

Insights That Build Strong Career Paths

The best advice I can give is to invest in your education. Earning my APICS certification changed my career because it gave me credibility beyond the walls of a small company and opened doors when I needed new opportunities. I also pursued my MBA while working full-time with two young children, which broadened my understanding of healthcare beyond the supply chain. 

For those already in the field, listen to your staff. Understand their work, trust their expertise and manage them, rather than doing their jobs. The mindset that has shaped my leadership is that you are only as good as the people who work for you.