Procurement Cost Reduction

$85M Healthcare Provider

Background

  • National durable medical equipment provider targeted towards hospice patients
  • 60 Branch locations and 22,000+ patients

Contributions

  • Sent out request for proposal (RFP) to all potential suppliers
  • Followed up negotiations with potential preferred suppliers
  • Eliminated suppliers with minimal spend
  • Incorporated procurement best practices to minimize additional products and suppliers

Results

  • Improved payment terms to suppliers, with an average increase of 30 days
  • Shared month end billing summary with suppliers
  • Reduced number of suppliers by 50%
  • Signed contracts with all suppliers