Owing to the dynamic advancement of the healthcare field, effective and efficient hospital SCM is crucial in increasing hospital productivity and overall customer satisfaction. This paper aims at establishing the application of lean for AI adoption in the hospital supply chain as a means of minimizing waste. The healthcare industry supply chain is highly intertwined and international thus more susceptible to disruptions, and the COVID-19 pandemic has shown the severity of the supply chain vulnerability. A research revealed that supply chain integration optimized by hospitals has its overall costs of supplies cut down by a third, and the time it takes to deliver services enhanced by the same fraction. Therefore, effective inventory management, including inventory reduction, combined with efficient sourcing strategies, paves the way for successful lean implementation and guarantees access to essential medical stock. In addition, the application of IT, in this case, receptors intelligent technologies for making predictions on the store and fully automating the inventory to meet patient needs. For instance, hospitals that have implemented AI in demand forecasting have noted a 25% reduction in stock out rates, and a 15% cut on expired stocks. This paper also reveals some examples of how such strategies can be implemented by involving clinical stakeholders, performing the audit at least once a year and considering using electronic system for inventory management. The research supports the use of lean and AI for effectiveness in hospital supply chains; showing that lean and AI can reduce costs, produce better patient outcomes, and increase general hospital performance. Through the application of these new strategies, hospitals are able to tackle the complex nature of healthcare delivery and the resulting high standards necessary for patients.