The medical devices market has grown promisingly over the last five years and our experts predict that it will continue to move forward at a substantial pace in the years to come. However, with companies expanding their operations to new markets and the advent of new, stringent healthcare regulations, it has become essential for medical devices manufacturers to change the way they look at procurement to stay a step ahead of their peers. Companies of today need to understand that the aim of procurement in the medical devices industry has shifted from merely reducing costs to improving supply chain visibility and patient safety. Medical devices manufacturers can better position themselves in the market by proactively managing supplier risks and harnessing innovation from the supply chain. This case study is a classic example of how we helped a medical devices company address the cost challenges by transforming how they look at procurement.
The Business Problem
A well-known Fortune 500 company that manufactures medical devices wanted to transform their procurement process to drive higher savings and identify new sourcing opportunities. They wanted to regularize their sourcing process, improve their spend visibility, and boost supply chain transparency to strengthen their position in the medical devices market. In addition, the client also wanted to devise an effective procurement strategy that would help them achieve significant cost savings and stay a step ahead of their counterparts in the medical devices industry.
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Solutions Offered and Client Journey
The procurement experts at SpendEdge formulated a procurement strategy that allowed the client to differentiate between effective and underperforming suppliers by comparing supplier bids, offers, and positioning. The insights offered increased the natural process flow from completed sourcing events to contracts, ensuring the compliance of contracted terms with negotiated offers.
With the help of SpendEdge, the client developed a superior sourcing strategy that incorporated market intelligence and enabled the client to identify potential savings opportunities. The experts at SpendEdge also interacted with suppliers to drive value through contract and supplier relationship management frameworks and avoid uncontrolled communication channels. This helped the client to take advantage of like-for-like bid comparisons and improve spend visibility, traceability and audit control. The improved procurement process further provided additional cash flow by extending payment terms.
Key Findings and Outcome
Provided Scope for Innovation
The solution offered improved the client’s medical devices procurement process and helped them achieve significant savings. They were able to initiate 200+ RFxs, create over 415 contracts, and process transactions worth $1 million with our help.
Improved Spend Visibility
In a span of 3-weeks, the client was able to develop actionable cost reduction proposals, drive greater value from suppliers, and reduce excess spend. Also, they gained better insights into the key medical devices manufacturers and their purchasing pattern. To know more about what we offer, request for more information.
Overview of Global Medical Devices Market Revenue (2015-2020)
How SpendEdge’s Solutions Can Help Companies in the Medical Devices Market?
By providing timely, incisive market intelligence insights, SpendEdge helps companies in the medical devices market to meet their cost goals – be it cost cutting, cost avoidance, or cost elimination. For over 15 years, we have specialized in offering actionable insights that help companies deal with multiple issues pertaining to their sourcing and procurement needs. For companies operating in the medical devices market, our solutions can help you better manage contracts, increase value from existing suppliers, and increase flexibility to meet the changing requirements of the end-users.