The amount of different products used and the sheer number of suppliers needed for one hospital is often incomprehensible. This makes purchasing complex and expensive. Procurement and supply chain analysis of hospitals revealed that purchasing patterns often follow the Pareto-Principle (The 80/20 Rule): 20 % of hospital orders make up 80 % of total value of goods purchased. The remaining 20 % require over proportional time and effort, as a large number of different suppliers are involved. This is expensive, both in terms of monetary value and time spent. SMS medipool’s Class B and C suppliers/products management reduces costs, and saves valuable time. SMS medipool pools the procurement processes of the required class B and C goods into what is then, for the customer, a single purchase and delivery. Our in-depth understanding of supply chain processes, high level of product knowledge, and extensive range of stocked products means we are able to significantly reduce costs for our customers.
Cost reductions through streamlined procurement processes
Cost reduction through streamlined procurement process
With SMS medipool’s Class B and C suppliers/products management a significant portion of the hospital’s suppliers is replaced by SMS medipool; meaning just one instead of hundreds of suppliers in your ERP system. Additional savings are realised through standardisation.
- Reducing the number of suppliers
- Reducing/avoiding overlaps
- Reducing process costs
- Saving time and human resources
- Analysis of the current basket of goods supplied by Class B/C suppliers
- Tailored project quote
- Presentation of the results and recommendations for the next steps
- Master data creation and maintenance
- Savings on product costs
- Time savings in product research
- Reduction of purchase orders
- Reduction of truck deliveries
- Reduction of capital tied up in warehousing
- Reduction of administrative workload
- Reduction of product wastage caused by expiry
- Reduction of postage costs and/or surcharges for small orders
- Cost reduction in waste management
- Increased reliability of supply through stocked substitute products
Cost reduction through streamlined procurement process
With SMS medipool’s Class B and C suppliers/products management a significant portion of the hospital’s suppliers is replaced by SMS medipool; meaning just one instead of hundreds of suppliers in your ERP system. Additional savings are realised through standardisation.
- Reducing the number of suppliers
- Reducing/avoiding overlaps
- Reducing process costs
- Saving time and human resources
- Analysis of the current basket of goods supplied by Class B/C suppliers
- Tailored project quote
- Presentation of the results and recommendations for the next steps
- Master data creation and maintenance
- Savings on product costs
- Time savings in product research
- Reduction of purchase orders
- Reduction of truck deliveries
- Reduction of capital tied up in warehousing
- Reduction of administrative workload
- Reduction of product wastage caused by expiry
- Reduction of postage costs and/or surcharges for small orders
- Cost reduction in waste management
- Increased reliability of supply through stocked substitute products
The advantage for you – our deep understanding of supply chain management processes.
To fully understand the streamlining of the purchasing/ordering process, the processing costs associated with every single order (which are, on average, € 40 – 60) must also be considered. These costs occur as a result of numerous factors:
- Order preparation
- Requesting quotes from various suppliers
- Evaluation of these quotes
- The creation of a purchase order
- Transfer of the order
- Following up on the availability of supply
- Acceptance and quality control of the goods
- Processing of returns
- Disposal of packaging
- Processing/filing of incoming goods
- Receipt of delivery
- Filing of invoices
- Payment of invoices
- Archiving
- Communications with sales representatives
Product and supplier make-up of “an example” hospital
The largest number of suppliers is found in the category “delivers 1-5 products.” Due to the low purchase value of these products, the only way to generate even slight reductions in price is to put a large amount of time and effort into research and negotiation processes. These products are often inexpensive and easily substituted. SMS medipool can substitute these products and thereby reduce the number of suppliers.
Invest your valuable time in the 20 % that make up your main products and suppliers (Class A). When it comes to your Class B and C products and suppliers, we can help you reduce costs in this section.
B/C product and supply management with comprehensive service
- Analysis
- Project development
- Product research
- Product standardisation
- Reducing suppliers
- Warehousing and inventory control