The Big Picture
In the good old days, when the world was smaller, hospitals managed their suppliers item by item. When inventory seemed to be getting low, or approached a pre-determined threshold, a new order was placed with the same vendor for a set amount. In today’s fast paced world and uncertain economic future, and with supply chain management representing 30-40% of your revenue, this approach is no longer viable. There is much more that goes into supplier management such as upgrades in materials, vendor negotiations, and manufacture time. How can you be sure that each supplier is dealing in good faith, using the highest standards in manufacturing and packaging, and meeting your requirements for best practices? How much time do you spend tracking down a newer, better, or cheaper supplier for the essentials? When you step back and take a look at the big picture, your hospital may be devoting nearly half of its resources to supplier management. There is a new demand for integrating all the variables associated with hospital suppliers. The supply chain management software PeopleSoft has the computing power to connect all the moving parts into one streamlined management process. You can customize the parameters for vendor selection and have a select list of pre-vetted vendors who meet your criteria.
Slow and Steady wins the race
A recent study published in Forbes concludes that companies who focus on improving their margins through supplier management succeed in small increments over a period of time. There is no quick and easy way to cut supply chain costs in half, but with strategic supplier management you will slowly realize tighter controls, more efficient supply usage, and greater stability in revenue flow. When you utilize PeopleSoft to integrate and streamline hospital supplier management, you also have the ability to see the big picture – all the moving variables, as well as the long term improvement. Let us show you how to maximize your investment with a holistic approach to managing your hospital. Contact us today!
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