Abstract:Objective：To establish a supply chain extension system to realize refined management of drugs and to improve the overall service quality and overall operation efficiency of hospitals. Methods：By extending the supply chain and optimizing the hospital’s business process，which could help the suppliers perfectly connect with hospitals，this study investigated an effective way to optimize the drug supply. Results：One year after the system was online，all the indicators were better than before. The efficiency of invoice entry almost doubled，and the timeliness of purchasing plan was guaranteed. Conclusions：The supply chain extension system integrates the human resource and improves the hospital operation pattern by realizing the effective management of the whole drug circulation link.