Spend Analysis Helps a Leading Medical Equipment Manufacturer Cut Down Overall Cost
Category Overview The health and medical facilities across the globe procure and consume a wide array of products, including pharmaceuticals, building, food, and medical supplies. Sourcing and procurement activities that encourage the use of efficient materials and products with low carbon footprints can create environmental and health benefits and cost savings. In many countries across […]READ MORE >>
The health and medical facilities across the globe procure and consume a wide array of products, including pharmaceuticals, building, food, and medical supplies. Sourcing and procurement activities that encourage the use of efficient materials and products with low carbon footprints can create environmental and health benefits and cost savings. In many countries across the globe, the spending in healthcare is on the rise, and the recent predictions of spending seem to indicate that current healthcare systems are unsustainable in the long run. Moreover, in most of the developed markets, the healthcare industry suffers from two substantial and growing challenges which include the significant variation in patient outcomes for routine procedures and the spiraling costs involved in such procedures. As a result, stakeholders across the healthcare industries are looking for methods to provide high quality and accessible healthcare services to individuals at affordable public and private costs. One such method is to implement value-based healthcare service that focuses on patient outcomes and the costs of delivering these results, can address both challenges. In addition, the healthcare industry is in a unique position to boost value-based health care. Thanks to its design innovations, business, and therapeutic experience, and deep relationships with healthcare providers who deliver enhanced care at reasonable costs.
As the healthcare industry endures to increase its focus on cost-to-serve strategies for managing healthcare cost, accurate data could be a stumbling block for understanding procedure costs and its relationship to desired clinical outcomes. As a result, it is crucial for healthcare industry players, especially the medical equipment manufacturers to understand the association between clinical and supply chain management data. Understanding the medical equipment sourcing and procurement strategies are critical factors in ensuring that the process of opening, moving, and upgrading a medical facility is handled in a manner that delivers the level of service assured right from the start. Moreover, procurement managers and facility equipment administrators across the globe are becoming increasingly aware of the vital importance of bringing efficiency to this complex undertaking as the healthcare industry continues to dictate the need to increase quality performance and cut costs.
These challenges have urged players in the medical equipment manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical equipment manufacturing space identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. These solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.
With years of expertise in offering spend analysis and spend management solutions, SpendEdge also helps medical equipment manufacturing firms measure and improve their business decisions by formulating cost-effective strategies across the supply chain.
The Procurement Pain Point and Insights Offered
A renowned global medical equipment manufacturing client with offices spread across several geographies approached SpendEdge to streamline their logistics chain. The medical equipment manufacturing client was also facing predicaments in reducing their cost across the medical equipment sourcing and procurement processes. As a result, the client wanted to find an established vendor that could provide everything from competitively priced medical equipment all the way to delivery and set-up solutions than just merely focusing on the price of an item itself. Additionally, the client was also facing challenges in operational functions which restricted them from increasing their process efficiency and streamlining their sourcing and procurement functions. Identifying an automated sourcing and procurement solution that helps to organize the process was a more appropriate option.
To cater to the business requirements of the medical equipment manufacturing client, SpendEdge’s spend analysis specialists tailored an integrated two-step research methodology which included qualitative and quantitative data collection methods. SpendEdge also closely collaborated with specialists from the healthcare institutions who have already implemented innovative procurement practices. During this spend analysis engagement, the medical equipment manufacturing client was able to identify sourcing and procurement solutions that address the issues unique to healthcare. Additionally, the client was able to launch category-specific sourcing events, thereby, making it possible to swiftly analyze the types of complex, strategic products with the help of SpendEdge’s collaborative sourcing tool. These tools also offer built-in category-specific dynamic pricing structures that help in assessing the trade-off decisions between quality and price to identify the supplier offering the overall best value.
Fundamental questions answered in this spend analysis study include
The medical equipment manufacturing client was able to identify the areas for process improvement and cost reduction by gaining real-time insights into the firm’s procurement activities and expenditures. The client was also able to identify the best-in-class suppliers in the medical equipment manufacturing space which will help them in significantly cutting down the prices on high quantity products. Furthermore, the client captured the product data and subsequently formulated an efficient patient cost-to-serve model with the desired outcome for quality patient care.