Whether shipping pharmaceuticals that require strict temperature control, medical devices subject to Unique Device Identification (UDI), or sterile products that demand complete chain-of-custody documentation, healthcare companies operate in one of the world's most regulated and complex supply chains.
A new GS1 US research report, Powering Supply Chain Confidence: The Role of Data and Standardization, dives into how organizations are responding to these challenges. Based on a survey of more than 500 supply chain professionals across healthcare, foodservice, grocery and retail, the report identifies a clear pattern: organizations with the greatest confidence in managing disruptions also demonstrate stronger data practices, greater adoption of GS1 Standards, more effective traceability, and higher levels of automation.
For healthcare packaging professionals, the findings reinforce something many organizations are already experiencing: compliance alone is no longer enough. Success increasingly depends on creating connected packaging and supply chain ecosystems capable of delivering accurate information in real time.
Confidence Begins with Visibility
Nearly every organization surveyed—99%—expressed confidence in its ability to manage supply chain disruptions. Yet beneath that confidence lies a significant operational challenge.
Forty-three percent of respondents admitted they struggle to maintain complete visibility across their supply chains. Loss prevention, monitoring environmental conditions such as temperature, sustainability verification, and responding to new regulations remain persistent pain points. The report found that those issues are especially relevant in healthcare.
Cold chain pharmaceuticals require continuous monitoring from manufacturing through distribution. Medical devices increasingly require serialized identification throughout the product lifecycle. Hospital systems expect immediate access to product data during recalls or shortages. Every handoff generates additional data—and every missing data point introduces risk.
Visibility, therefore, isn't simply about knowing where products are. It means understanding product condition, identity, provenance and regulatory status throughout the entire lifecycle. Healthcare organizations that can deliver that level of transparency position themselves to respond faster when disruptions occur.
“In the pharmaceutical industry, geopolitical uncertainty, changes in customer demand, and evolving regulatory expectations are creating significant challenges across the supply chain, says Alkhawam. “Manufacturers need greater flexibility, visibility, and resilience in sourcing, manufacturing capacity, inventory management, and supplier relationships. This is increasingly driving companies to reassess their supply chain strategies and invest in more agile and robust operating models.”
Standardized Data Creates Stronger Supply Chains
Among companies reporting full GS1 Standards adoption, 77% also reported high confidence in managing supply chain disruptions. That compares with only half of organizations with partial adoption and just one-quarter of companies still considering implementation.
“Standards such as GTIN, GS1-128, and serialization requirements for maintaining accurate product identification and supporting end-to-end supply-chain visibility are paramount. Especially from a packaging/operations side, working within regulated pharmaceutical environments where serialization, labeling, packaging controls, and data integrity are critical,” says Aladin Alkhawam, an industry consultant and Supply Chain Security DSCSA Compliance expert.
The report notes that healthcare is among the industries leading GS1 adoption, reflecting the sector's regulatory requirements and emphasis on traceability. From a packaging perspective, standardized identifiers embedded in labels, 2D barcodes, and RFID technologies increasingly become the connection point between physical packaging and digital information systems.
Traceability Has Become a Strategic Capability
Healthcare packaging professionals have long viewed traceability as a regulatory requirement. Today, it is becoming a competitive advantage. According to the survey, 68% of companies with full GS1 Standards adoption report having effective traceability processes, compared with 48% of companies with partial adoption and only 30% of organizations still considering implementation. None of the organizations with no plans to adopt GS1 Standards reported effective traceability capabilities.
That distinction matters as regulatory expectations continue expanding worldwide. Healthcare manufacturers increasingly must demonstrate the ability to:
- Trace products beyond traditional "one up, one down" supply chain models.
- Execute precise lot- or batch-level recalls.
- Prevent counterfeit products.
- Document sourcing and manufacturing information.
- Share standardized product data with trading partners.
Rather than functioning solely as protective containers, packages now serve as digital gateways connecting products to enterprise systems, regulatory databases and healthcare providers.
Better Data Produces Better Decisions
Technology investments often focus on visibility tools, but the report suggests data quality may be equally important.
Organizations using centralized data management systems were nearly three times more likely to trust the accuracy and consistency of their supply chain information than companies relying on decentralized or manual processes.
Sixty-eight percent of organizations with centralized systems expressed strong confidence in their data accuracy, compared with only 29% of organizations using manual integration approaches.
“Compliance shouldn’t be the finish line here, compliance should be the starting point,” said Ed Bonin, director of enterprise traceability and compliance at Walmart in an article that appeared in Packaging World. Standardize on GS1 and “you stop recording, and you start seeing.”
Collaboration Depends on Shared Information
Healthcare supply chains extend well beyond individual manufacturers. Packaging suppliers, contract manufacturers, logistics providers, distributors, hospital systems and regulatory agencies all rely on accurate product information.
“Accurate inventory management depends on timely and reliable data sharing across customers, suppliers, contract partners, and logistics providers,” says Alkhawam. “Effective collaboration will help ensure visibility into demand, material availability, inventory levels, production requirements, and shipment status, reducing the risk of shortages, excess inventory, and supply disruptions.”
According to the survey, 99% of respondents identified collaboration with trading partners as essential for harmonizing supply chain operations. Organizations with centralized data systems reported significantly greater success collaborating with partners than those relying on fragmented information systems.
Yet barriers remain. The two largest obstacles identified were technological integration challenges and misaligned priorities between partners. Healthcare organizations experience these issues regularly when exchanging product master data, regulatory documentation or serialized information across multiple enterprise systems.
Standardized product identification and shared data structures reduce those friction points, enabling faster onboarding, fewer data errors and more efficient inventory management.
Regulatory Compliance Continues to Grow More Complex
For healthcare manufacturers, regulatory complexity shows no signs of slowing.
The survey found that only about half of respondents believe they can fully manage key compliance requirements such as counterfeit prevention, product traceability, recall execution and sourcing transparency.
To strengthen compliance, leading organizations reported focusing on several core activities:
- developing comprehensive traceability processes
- continuously monitoring changing regulations
- conducting regular audits
- implementing centralized technology platforms instead of spreadsheet-based systems
These priorities closely align with healthcare's evolving regulatory landscape, including increasing emphasis on product identification, digital documentation and end-to-end traceability.
Sustainability and Patient Safety Can Advance Together
Healthcare packaging often faces unique sustainability challenges. Sterility requirements, material compatibility, barrier performance and regulatory requirements can limit packaging redesign options. Even so, sustainability continues moving higher on executive agendas.
According to the report, 99% of organizations consider sustainability important. However, only about half have implemented concrete sustainability practices within their supply chains.
Among current initiatives, organizations most frequently reported:
- waste management and recycling
- sustainable packaging
- sustainability certifications
- responsible sourcing of materials
For healthcare companies, the next phase of sustainability may depend less on material substitution and more on better information. For example, improved traceability can reduce waste from expired inventory. More accurate forecasting minimizes overproduction. Digital product information reduces documentation burdens. Connected packaging technologies support more efficient recalls while limiting unnecessary product disposal.
Better data, in many cases, enables better sustainability.
Building the Future Healthcare Supply Chain
The report concludes that resilient supply chains share several common characteristics: standardized data, centralized information systems, automation, collaboration, regulatory readiness, innovation and sustainability.
For healthcare packaging professionals, those priorities reinforce a larger industry shift. Packaging is no longer simply the final step in manufacturing. It has become the physical and digital connection between products, patients and the broader healthcare ecosystem.
Organizations that invest in standardized identification, real-time data, intelligent packaging technologies and collaborative information sharing are building more than efficient supply chains. They are building supply chains capable of responding quickly to disruption, adapting to changing regulations and protecting patients through greater visibility and confidence.
