Saving money is as much an art and science as logistics, inventory, or risk management. In fact, it requires a set of core beliefs, system thinking, and a smidgen of behavioral science if you are to be truly successful in reducing your supply chain expenses. Most supply chain professionals believe saving on their expenses is […]
Over the last few decades, GPOs have been the driving force on price and standardization savings for healthcare organizations. However, as Isaac Newton’s third law states, “With every action there is a reaction.” The reaction or result of taking your GPO’s price and standardization at face value is that you are missing three things you […]
I have often written about the Supply Savings Triangle (or a combination of price, standardization, and utilization tools, techniques, and tactics) as the ultimate savings strategy for any and all supply chain organizations. You might call it the triple header of supply chain expense management. As a reminder, here are three ways the Supply Savings […]
Due to the growing maturity of group purchasing and custom contracting in the healthcare industry, hospitals, systems, and IDNs have already achieved a significant amount of savings in their pricing and standardization. However, these savings are starting to be constrained because of the law of diminishing returns. In fact, SVAH’s studies show that the overall […]
Every supply chain professional is looking for that magic bullet to squeeze a few more dollars out of their supply chain expenses this fiscal year. However, let me tell you a secret I have learned in my long supply chain career about saving money. There are no magic bullets; just proven strategies, tactics, and techniques […]
Every supply chain professional is looking for that magic bullet to squeeze a few more dollars out of their supply chain expenses this fiscal year. However, let me tell you a secret I have learned in my long supply chain career about saving money. There are no magic bullets; just proven strategies, tactics, and techniques […]
Healthcare supply chain and value analysis professionals are estimating projected and promised savings on their price, standardization, and value analysis projects. Yet, an estimate or promise of savings in today’s economic downturn isn’t good enough for the following strategic reasons: 1. Make Certain that Savings Budgeted by Finance are Validated: It is our estimate that […]
All healthcare organizations are scrambling to optimize their supply chain expense savings this fiscal year to fill the gaps in their budgets due to the effects of the pandemic. However, rather than just cut 5% to 8% indiscriminately across the board, progressive supply chain leaders are doing these five things to optimize their supply chain […]
Lifecycle cost management (or how much money you spend over the life) of the products, services, and technologies you are buying is the ultimate cost optimization strategy vs. just focusing on price and standardization of these same commodities. The classic definition of lifecycle cost is, “The sum of the purchase price plus the subsequent costs […]
Clinical supply utilization benchmarking (sample shown in figure 1) is new to many supply chain professionals but is the fastest and surest way we have found to compare clinical supply utilization best practices between peer healthcare organizations. However, to be truly successful in clinical supply utilization benchmarking you must do these four things: Figure 1 […]