Tag: procurement process

procurement process

4 Effective Ways to Get More Out of Your Healthcare Procurement Process

Technological advancements are rapidly changing the US healthcare industry. Surgeries are microscopic; patients have virtual access to doctors and many more. But while healthcare organizations have improved patient care, not much attention has been given to procurement challenges faced by companies on the backend. Managing inventory takes hours and supplies aren’t always on stock, that results in delayed procedures, higher procurement costs, and ultimately a negative impact on patients.

To address all such problems and improve healthcare services, it’s vital for companies to improve the healthcare procurement process. However, managing complex supply chains and improving the healthcare procurement process flow is not a simple task. SpendEdge breaks downs four ways that can help organizations to improve the healthcare procurement process and make it more efficient. 

Want to know how you can improve the healthcare procurement process flow? Request a free proposal and we will get back to you in 48 hours with healthcare procurement best practices.

Strategies to Improve the Healthcare Procurement Process 

Devise an effective pricing strategy 

In order to improve the US healthcare procurement process, companies need to develop an effective pricing strategy. This requires a thorough understanding of costs. Companies can use accounting systems to obtain detailed information related to actual and incremental costs of each service. They can track and manage information on supplies, labor, and other expenses to devise an effective procurement strategy and improve the pricing system. Additionally, organizations can benchmark prices against their competitors by reviewing commercially or publicly available databases.      

Improve contract management 

Majority of organizations rely on purchasing organizations to manage their contracts and save costs on products and services. However, healthcare service providers must pay attention to their contracts by examining the pricing structure. In a market-based healthcare system, the rates set by competitors significantly impact the prices set for healthcare services. Such market forces must be addressed to avoid being overcharged for products. Companies should also monitor their purchasing contracts and understand “strict confidentiality clauses” regarding prices set by vendors.

Wondering how you can monitor purchasing contracts and improve the healthcare procurement process?

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Improve the accuracy of orders

Error with the ordering process can sometimes become a struggle for organizations. It leads to revenues losses and hampers the timely delivery of services. Also, it can lead to poor medication error and negatively impact health outcomes.

If companies can improve the accuracy of their orders, less time will be wasted on reordering the correct product. Organizations that control orders can improve the healthcare procurement process. A computerized provider order entry (CPOE) system is one of the ways used by companies to improve order accuracy. 

Inability to improve the accuracy of orders can increase the cycle time for procuring products. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the healthcare procurement process.

Utilize analytics to improve operational efficiency

To improve the healthcare procurement process, the organization should use latest technologies supported by analytics. Automating processes and leveraging data analytics can help improve the efficiency of the procurement process. Data and analytics possess the capability to transform the healthcare supply chain into strategic business assets. Focusing more on technologies and automation can reduce financial expenses and support data-driven strategies.

To gain detailed insights into the healthcare procurement process steps, request for more information from our analysts.

procurement process

6 Key Steps to Improve the Public Procurement Process to Increase the Value for Money

In today’s changing economic environment, public works provide the corporate sector with immense opportunities to compete for profitable work. Therefore, understanding the public procurement process is critical to compete for such projects and be eligible for work.

All levels of government, including Federal, state, and local agencies select potential vendors through competition. Public organizations advertise, collect information, and accept offers to secure the necessary goods and services. The process includes Invitations for Bid, Request for Proposals, Requests for Qualifications, Requests for Letters of Interest, and Invitations to Negotiate. The responses are then evaluated based on the needs of the organization without price being the determinative factor. However, many organizations still face certain challenges when it comes to improving the public procurement process. Here are the key steps involved in the public procurement process.

Want to know how you can improve the public procurement process flow? Request a free proposal and we will get back to you in 48 hours with information on public procurement best practices.

Steps Involved in the Public Procurement Process

Step 1: Requirement identification

Organizations must determine the objectives for the procurement and have a detailed clear scope of requirements. They should also research the market and gain insights to understand capabilities and restraints. While doing so, organizations should also ensure probity arrangements and meet government transparency requirements.

Step 2: Scope of the procurement  

Rights products are vital for organizations. Some organizations have standards to help determine specifications. Selecting the goods or services to be purchased are subject to coordinated procurement arrangements that must be used. Then, estimate the value of procurement and comply with the rules set by the government entity.

Wondering how you can estimate the value of procurement and ensure compliance with guidelines?

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Step 3: Determine the procurement method

In a public procurement process, it depends on the organization whether they want open tenders or limited tenders. Open tenders generally involve one stage (Request for Tender) and need to be advertised on the official website. Limited tenders are directly asked from or more suppliers. In this, the organization qualifies suppliers to determine the best products.

Step 4: Explore sourcing options

Notify the market to obtain products. For open tenders, ensure that the minimum requirements are met. Include essential information in the request documentation to enable suppliers to develop and lodge competitive and compliant submissions. Also, use appropriate limitation of liability and standard contract clauses to improve the public procurement process.

Inability to improve the public procurement process can restrict companies to procure the best products for their businesses. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to improve the public procurement process cycle.

Step 5: Evaluate Submissions

Deal with unintentional errors in tenders in accordance with the set guidelines. Undertake a financial viability assessment of preferred suppliers to improve the public procurement process. Also, provide sufficient documentation and information to the delegate to enable them to make an informed decision.

Step 6: Manage Contracts

Developing a contract management plan is crucial for organizations to assist the entity to understand and implement obligations under the contract. If possible, assess contract extension options on a value for the money basis in accordance with the terms of the contract.

To gain detailed insights regarding the public procurement process cycle, request for more information from our analysts.

procurement process

3 Strategies to Get More Out Of Your Procurement Process

SpendEdge, a leading provider of procurement market intelligence solutions, has announced the launch of their latest newsletter on the strategies to get more out of your procurement process.  A robust procurement process can help you to realize immediate upfront cost savings by procuring items, services, and contracts at the best prices.

Why It’s Time to Improve the Pharmaceutical Procurement Process?

Our analysts have noted that aggressive competition on generics pricing, expensive clinical trials, slow drug approval process and growing expectations of patients are creating different challenges for companies, globally. While top companies are opting for better procurement management to save costs, we have noticed that there are certain challenges that you need to address to ensure profitability in the pharma industry. This article will help you understand how an improved procurement process can control spend and improve supplier efficiency to create more opportunities for innovation. Also, it will provide key insights regarding the role of the procurement process in managing the indirect spend.

Truth About Purchasing and Procurement

Most of us have started using the terms purchasing and procurement interchangeably. But that does not mean they are same. They have certain similarities but have different meanings. This article will help you differentiate between the purchasing and procurement process.

The article will show how procurement is used as an umbrella term that includes several core business functions apart from purchasing. Procurement deals with the sourcing activities, negotiation and strategic selection of goods and services whereas purchasing mainly deals with the process of ordering goods and services. Purchasing can also be described as a transactional facet of the overall procurement process. The understanding of basic difference purchasing, and procurement process will help you effectively manage the entire procurement process and reduce revenue spent on purchasing goods.

Procurement Process Steps You Need to Know

An efficient procurement and sourcing process can successfully lower costs, enhance efficiency, increase profit margins for companies and improve contract management. However, you must agree that the procurement  and sourcing process is more complex than it might seem to be.

To help you improve the process and reap above mentioned benefits, you need to select the most reputable vendors and minimize order delays and mistakes. The article will help you gain knowledge about the key steps involved in improving the procurement process. This will ensure that you don’t end up paying too much while procuring goods and services. The article also highlights how vendor selection, getting approvals from internal departments that control finances, and complying with guidelines is critical for the procurement process.

healthcare industry

Procurement Market Intelligence: Streamlining Procurement Process and Achieving Savings of $19 Million for a Healthcare Products Manufacturer

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.

Wondering how you can improve the procurement process?

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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.

Want to map the procurement process flow? Get in touch with our experts today!

inventory management

Key Challenges Companies Face in Direct Procurement Management

Today, organizations are increasing their focus on financial processes and are designing strategies to reduce indirect spend. However, the value of such strategies and solutions are limited to industries where indirect spend is less than the direct spend, as direct procurement management involves a different set of requirements. 

Direct procurement management is an extensive process that entails multinational suppliers, lengthy lead times, and heavy reliance on logistics. Direct procurement management also requires extensive collaboration among different parties to manage the supply chain. It has a greater impact on organizations’ customer retention, as failures in supply chain management and product delivery affect customer experience and loyalty, as well as business success and growth. Therefore, in this blog, we have highlighted the key challenges that companies face in direct procurement management.

Developing a robust direct procurement process requires updated market data. Request a free demo to know how our experts can help you with precise market insights.

Challenges in Direct Procurement Management

Complex supply chains

The supplier base for direct procurement is usually much wider and complex when compared to that of indirect procurement. This puts valuable goods at stake and increases the possibility of process inefficiencies. Factors like supply chain movement, supplier base health, and brand value play a critical role in direct procurement management.

In addition, direct procurement process requires companies to engage with suppliers directly for placing orders and sharing forecasts. This involves multi-tiered supply chains making it even more difficult for companies. 

Improving visibility into all supply chain processes will help organizations track their shipments and keep the production going. Also, gaining supply chain financing will provide access to capital when required and maintain the efficiency of the supply chain and the supplier base.

Wondering how improving direct procurement process can impact the growth of organizations?

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Globalization

Globalization has been a critical factor in transforming the way how organizations have been managing their procurement. Global direct procurement management requires businesses to manage an expensive and diverse supply chain that operates across different borders. More touch points are needed to gain accurate data in real time for the efficient flow of goods. In addition, shipping orders across borders entails extensive documentation to clear customs, as well as requires detailed coordination between organizations, trading partners, and even local governments.

The complexities further escalate with the involvement of a range of business partners, the types of transactions, and the flow of financial assets. To gain detailed insights into the direct procurement and indirect procurement, request more information here!

Logistics management

In direct procurement, a long term financial planning is imperative for a successful supply chain. Although logistics do not have much role in indirect procurement processes but in direct procurement management, it directly impacts customer experience and business success. Proper management of the extensive amount of data among different parties is must to ensure that the suppliers are packing, producing, and shipping orders correctly to ensure the safe delivery of products in an efficient manner.

Visibility into inventory, purchase orders, shipments, and payments, will help in developing a robust supply chain. Also, improving transportation procurement will enable companies to prevent goods shortages and build a positive customer experience.

Wondering how logistics management can impact your supply chain. Get in touch with our experts for better insights.

cost benefit analysis

Understanding the Basic Difference Between Purchasing and Procurement

What is Purchasing and Procurement?

Purchasing and procurement stand for far more complicated processes than simply bringing goods and services to an organization. They are the foundation of strong, collaborative relationships with suppliers. However, often, purchasing and procurement are used interchangeably and are misunderstood. Through this blog, our experts try to clear the difference between purchasing and procurement.

Procurement is a business management function that involves the acquisition of products and services. It covers a set of activities from identifying the need for goods and services in the organization to strategically acquiring them. The procurement process usually involves activities such as:

  • Selecting vendors
  • Establishing payment terms
  • Negotiating contracts
  • Purchasing goods

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Answers to the questions

5 Key Procurement Trends That are Crucial for Procurement Organizations in 2019

Top Procurement Trends for 2019

With the procurement industry experiencing continual transformations, companies are facing the dire need to look for new ways to assess, increase, and monitor the efficiency of their procurement process. They are now expected to devise an effective procurement plan that can enhance their sourcing and procurement process.

However, doing this is it is not as easy as it appears to be. Companies are driven by different environmental and social risks and require transparency in their supply chains. As a result, more comprehensive methodologies need to be embedded in the procurement process and to ensure sustainability.  At SpendEdge, we understand that procurement is not just limited to minimizing costs or mitigating risks. Therefore, in this blog, our team of experts has highlighted the key procurement trends that are going to impact businesses in 2019.

Have you ever thought why some procurement organizations fail to keep up with the demands? It’s because they fail to predict future procurement trends. Get in touch with our experts and know how major procurement trends can affect your business. 

Top procurement trends for 2019

Surge in digital technologies

Digital technologies such as blockchain, cryptocurrency, cloud, and artificial intelligence (AI) are among the top procurement trends for this year. One of the key reasons behind the emergence of digital technologies is the willingness of companies to make the digital business a top priority. Companies are now finding significant automation potential in transactional activities and strategic tasks and bodes well for most businesses since it will enhance their efficiency.

Cybersecurity threats

Although digitization is taking a leading edge, the growing amount of data is leaving the entire supply chain vulnerable to cyber threats. This is the reason why cybersecurity is considered to be one of the major procurement trends for 2019. Organizations can adopt various strategies such as limiting supplier access to IT systems and ensuring compliance to enhance their procurement process.

Focus on reducing indirect spend

Indirect spending has always been a prime concern for procurement organizations. It involves a large supplier base and a comprehensive governance process to avoid leakages, contract terms, and paperwork.  Over time, these factors become so complex that organizations start losing out on crucial opportunities. Therefore, organizations have started looking for automated financial and tail spend management solutions that can ease out the complete process for them.

Interested in reducing the indirect spend for your organization?

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Prominence of big data

Disruptions in the supply chain can lead to increased costs, labor unrest, and customer service challenges. Big data can provide critical insights required for predicting events or disruptions. Businesses just need to collate data points from all sources and align them to their business operations to make the most of big data solutions. These benefits are making big data one of the main procurement trends for 2019.

Enabling sustainable procurement

With procurement functions shifting beyond cost management, procurement organizations have started employing sustainability as a lens to identify environmental and social risks. This is because environmental risks such as resource and raw material scarcities are increasing. Also, risks associated with social factors are becoming more visible and less acceptable as the younger generation of consumers is entering the prime purchasing age. Analyzing procurement trends will help businesses in sustainable procurement and entailing performance-based metrics into each phase of the procurement plan.

Analyzing procurement trends helps organizations to keep themselves prepared for the changing market dynamics. However, it requires thorough market knowledge and expertise. Request a free demo and know how our experts can guide you in analyzing the recent procurement trends.

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supply management

How Purchasing and Procurement Can Impact the Efficacy of Businesses?

Until now, purchasing and procurement were a necessary part of multinational corporations but seldom celebrated. But changing times have compelled organizations to acknowledge the role of purchasing and procurement when it comes to driving the success of organizations. Through this blog, we are discussing the difference between purchasing and procurement process and how it can impact the quality, innovation, efficiency, and savings of an organization.

Mostly, purchasing and procurement are considered to be synonyms by people. They never consider purchasing and procurement as different terms as both are related to the acquisition of goods or services for companies. Therefore, it becomes vital for companies to understand the difference between procurement and purchasing to understand the impact on their organizations.

At SpendEdge, we understand the impact that a process can have on your organization. Therefore, our team of experts has highlighted some major aspects that are influenced by the procurement purchasing process.

Are you interested in analyzing the impact of purchasing and procurement activities for your organization? Get in touch with our experts and know how your procurement and purchasing impacts your business.

What’s the difference between purchasing and procurement?

Procurement is a broad and comprehensive concept. However,  procurement can be defined as a set strategic, tactical, and operational processes that are required to optimize the supply outcomes for needed external goods and services. It also involves processes such as spend analysis, sourcing, inventory management, and operational purchasing.

Purchasing, on the other hand, can be considered to be a part of the procurement process. It is a transactional process that deals with how goods or services are ordered. The purchasing process primarily focuses on stock purchases (inventory), non-stock purchases (expense), and subcontracting.

Importance of purchasing and procurement process for organizations

Improve quality

Purchasing and procurement departments can control the quality of products and services by setting target performance levels for quality. This helps them track the quality of products against set parameters such as durability, the look, or the delivery timelines. In some companies, purchasing and procurement departments even work in alignment with their vendors to develop processes and ensure quality.

Want to know how improving quality can benefit your business?

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Pursue innovation

Since the purchasing and procurement department is always in contact with innumerable businesses, they are in the ideal position to source innovative goods and services. Such a form of strategic sourcing provides businesses with the required competitive edge in terms of price, quality, or convenience.

Increase efficiency

Many companies consider procurement purchasing process as a one-dimensional process. However, when implemented strategically within the organization, the procurement and purchasing process can lead to greater efficiency. An optimized purchasing process can enhance the sourcing capabilities and ensure timely delivery of goods and services.

Achieve savings

Purchasing and procurement have a considerable impact on the bottom line of any organization. They directly impact the sales and costs of the company. Efficiently managing procurement and purchasing allows organizations to achieve immediate cost savings by procuring items, services, and contracts at the best possible prices.

Improving the bottom line of any organization requires consistent efforts and expertise. Request a free demo and know how our purchasing and procurement services can help your organization.

 

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