Recent changes in the Canadian healthcare sector has set the stage for new opportunities for revenue generation. However, recent changes have created the need for companies to improve their procurement process flow and address problems in healthcare procurement.
The Business Problem
The client is a leading manufacturer of healthcare products in Canada and generates an annual revenue of over $70 million. However, the country’s complicated procurement system, coupled with numerous jurisdictions, each with its own legislative framework, was creating a complex healthcare ecosystem. The client was also sourcing products from multiple suppliers and receiving multiple deliveries and invoices, which was leading to excess spend. This compelled the client to map the procurement process flow and leverage SpendEdge’s procurement market intelligence solution to gain detailed insights into the commodity categories and meet regulatory requirements.
Understanding the procurement process flow is crucial for companies to reduce excess spend. Request a free proposal and access our complete portfolio of procurement market intelligence solutions for free.
Solutions Offered and Client Journey
To help the client correctly map their procurement process flow, the experts at SpendEdge identified gaps within their process and consolidated the requirements of all departments within the organization. They also gained visibility into the spend areas and specialty categories to help the client identify cost-saving opportunities.
Insights obtained from SpendEdge’s solution helped the client to track and manage information on supplies, labor, and other expenses. This helped them to identify related goods that can be purchased from fewer suppliers, leveraging larger spend to negotiate better pricing. Also, evaluating suppliers on the basis of the quality of service, warranty, and customer service helped the client to improve the procurement process flow. The solution delivered enabled the client to benchmark pricing and ensure procurement costs were in line with the average market prices.
Key Findings and Outcome
Achieved significant savings
The improved procurement process flow ensured that the single purchase order and shortlisted vendors could meet the needs of the entire company. This reduced the time taken by the client to process the requests. The solution provided further helped the client to develop a good working relationship with the suppliers and negotiate the best deals. This minimized the time spent on low-value items and helped the client to achieve savings of over $19 million.
Maintained regulatory compliance
The experts at SpendEdge realized that the government policies and regulations seek to strengthen healthcare security and safety at a macro level. Therefore, they identified laws and regulations that must be followed by the client to sustain themselves in the healthcare market. They focused on compliance, ethics, and risks to drive awareness throughout the enterprise and improved compliance. For detailed insights into the solution offered, request for more information.
What are the Best Practices in Procurement Process?
Since the efficiency of the procurement process can decide the success for businesses, it becomes imperative for companies to follow procurement process steps and map the procurement process flow. Here are a few procurement best practices that companies can follow:
Automate data gathering process: Conducting research on suppliers can be a time-consuming process. By automating this process, companies can ensure the availability of information without spending a lot of time and effort.
Involve in strategic sourcing: The best-in-class organizations obtain feedback and information regarding their objectives and strategies from different functions. This helps them to ensure availability of supplies, reduce the total cost, and streamline the procurement process.
Make continuous improvements: It is advisable for companies to never assume that the procurement process flow is perfect. Make continuous improvements to tap new opportunities and gain greater efficiency.