Category Management Study Helps a Diagnostic Services Provider Drive 12% In Savings
Over the past few years, the market for diagnostic services has proliferated owing the increase in the incidence of chronic diseases and aging population across the globe. Additionally, the diagnostic services industry space has seen an astonishing growth in innovation and improved technologies due to the higher demand for state-of-the-art diagnostic services from the patients. Consequently, to establish themselves and gain a stronger foothold in this market space, firms operating in the diagnostic services space have evaluating the dynamics, drivers, and niche segments of the markets to understand their customers better. Moreover, to optimize the cost structures and the efficiency and effectiveness of business relationships, firms have started opting for robust category management studies. These studies also help clients mitigate supplier risks, administer innovations, and improve supplier performance across the supply chain.
With years of experience in offering a wide array of category management solutions, the category management specialists at SpendEdge assists firms operating in the diagnostic services space to increase their focus on decreasing the overall procurement lead time for their process across business units.
The Procurement Pain Point and Insights Offered
The client, a leading player in the diagnostic services space, was facing challenges streamlining their business processes as they were extremely decentralized and fragmented due to rapid growth through acquisition and was spending millions on temporary labor with many agencies. As a result, they wanted to implement a vendor management system (VMS) and managed services provider (MSP) to centralize and better handle their temporary labor ownership issues and spends across their business units and locations.
To cater to the business requirements of the diagnostic services provider, SpendEdge’s category management specialists tailored a comprehensive research methodology, which involved primary and secondary research coupled with qualitative and quantitative data collection procedures. During the course of this category management engagement, the diagnostic services provider was able to facilitate a competitive RFP process to identify both an MSP and the supporting VMS online tool. This allowed the client to capture instant savings with the temporary labor agencies while allowing the MSP to entirely instrument and capture longer-term hard and soft-dollar savings.
Fundamental questions answered in this category management study include
With the help of SpendEdge’s category management solutions, the client was able to compress wage rates, reduce recruited and payrolled markups. This helped the client improve their overall savings by 12%.