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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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