Strategic Sourcing Analysis Helps a Fortune 500 Health Care Enterprise Transform Procurement and Drive Savings
Category Overview Typically, the health care industry includes providers of diagnostic, remedial, therapeutic, and preventive services such as doctors, hospitals and other public, private, and voluntary establishments. It also includes medical equipment and pharmaceutical manufacturers and health insurance firms. The growing prevalence of chronic diseases and comorbidities; development of expensive clinical innovations; and increasing patient […]READ MORE >>
Typically, the health care industry includes providers of diagnostic, remedial, therapeutic, and preventive services such as doctors, hospitals and other public, private, and voluntary establishments. It also includes medical equipment and pharmaceutical manufacturers and health insurance firms. The growing prevalence of chronic diseases and comorbidities; development of expensive clinical innovations; and increasing patient awareness, expectations, knowledge are few of the key trends impacting the global health care industry.
Let’s look at some of the fundamental factors that will influence the growth prospects of the consumer health care industry in the coming years.
- Creating higher value at lower costs: Lately, health care companies across the globe have started focusing on creating a better procurement system that achieves higher quality at lower costs. Creating higher value contributes to significant growth and performance improvements. Therefore, to speed up the improvement process and ensure the health care industry can achieve substantial profits is only possible by using strategic sourcing solutions.
- Value-based purchasing world: Health care enterprises must determine their tolerance for risks across the supply chain and implement risk strategies to achieve value-based procurement models to cement their position in this industry space.
These factors are forcing companies operating in the health care industry space to leverage the use of strategic sourcing analysis studies. Strategic sourcing analysis studies assist firms operating in the health care industry to centralize the suppliers’ responses and compare the responses within the client’s system. These solutions also help companies in generating optimal sourcing and procurement methods and measurement tools to drive savings.
The Procurement Pain Point and Insights Offered
The client, a leading health care enterprise specializing in the development and manufacturing of medical devices that are used in a range of medical specialties such as neuromodulation, cardiology, cardiac surgery, electrophysiology, gynecology, and urology, wanted to implement procurement automation technology to streamline its sourcing processes, boost transparency, and increase savings. The client also wanted to enhance their visibility into spend and drive higher savings. In addition, they also wanted to develop robust sourcing analysis capabilities across categories and geographies.
To help the client improve the overall procurement process, the strategic sourcing analysis experts at SpendEdge tailored an integrated research approach. The integrated approach included primary and secondary research methodology coupled with qualitative and quantitative data collection procedures.
Through the course of the strategic sourcing analysis engagement, the client not only developed a best-practice methodology to reduce sourcing cycle time by also created a long-term interrogable repository of supplier responses and sourcing activities across business units. In addition, the client deployed a comprehensive technology solution that integrated the end-to-end procurement process from source to contract — one that connected the results of sourcing events to the resulting buyer and supplier contracts and reflected the negotiated contract terms.
Fundamental questions answered in this strategic sourcing analysis engagement include
With the help of this strategic sourcing analysis engagement, the health care industry client reported significant efficiency gains due to its ease of use and a single view of all procurement activity. Additionally, automation and normalization what used to be challenging procedures are now allowing the client to take advantage of new opportunities, changing market factors and unforeseen circumstances with a rapid response and in turn, drive savings.