How Sourcing Technology Can Save You $1MIL This Year

It has been said that one believes things because one has been conditioned to believe them. CFOs and Supply Chain directors no longer have to be conditioned to accept antiquated solutions. Healthcare sourcing technology and data exist that will allow supply chain departments to act swiftly and operate in a brave new world of shortened contract savings and immediate savings recognition.

Empowered with these tools, we’ve recently helped 5 hospitals save over $1MIL – and here’s how we did it:

Shorten contracting cycles

The era of value-based care and Medicare bundle payments demands greater speed and agility from modern supply chains. The days of working ten months on a sourcing project, closing the binder, and wiping the sweat off the brow are over. As are being too late to trigger dusting off that binder again three years later.

Supply chains of the future use technology to push savings opportunities to the forefront so opportunities are always being worked with the highest return, not just the highest volume. These innovators will find ways to automatically build accurate market baskets and manage workflow with technology. Automated and perpetual contracting means having the ability to do everything faster and easier.

Unlock hidden savings

If roughly 20 percent of your items comprise 80 percent of your spend and you’re tight on time and people, it makes sense to limit your focus and subscribe to the “tunnel vision” approach to strategic sourcing. However, once you’re leveraging technology to achieve automated and perpetual contracting, you’ll realize you now have the bandwidth to find “gems” tucked away in secondary PPI categories. As an example, it is not uncommon for at least $60,000 of savings to be present in every smaller category today. Rather than those categories going months without being reviewed, just think of the savings you can realize as you have the time to address them.

Let technology do the heavy lifting

PPI spend is one of your biggest opportunities to achieve dramatic savings — the kind of savings that can take a hospital from the red to the black. You probably know you’re spending too much money on certain products, maybe you have a “wish list” of categories you’d like to address on your radar. The good news is that with the right tools, millions of dollars in lost opportunity costs can be reclaimed and applied to other areas of patient care.

Modern clinical spend management with the advent of cloud-based sourcing technology creates a multi-sourced bid environment that makes it easy to collaborate, reduce sourcing cycle time and recognize tens of thousands in savings with no change of products.

For a breakdown of product categories and results that yielded over $1MIL for organizations ranging from community to teaching hospitals, take a look our most recent whitepaper.

2018-02-01T17:22:21+00:00 February 1st, 2018|Blog|