From a cost control perspective, the Suture Express just-in-time delivery model should be the future in healthcare. If you want a distributor who helps you run a leaner, more cost-effective supply chain operation, you want Suture Express
When you want to maximize savings in your supply chain, where do you begin? Today’s supply chain can be complicated by financial and operational challenges, complex contracts, backorders, price surges, poor service, and more. It always boils down to a need for a more cost-effective, straightforward supply chain.
Understanding Your Supply Chain
Before you set any changes in motion, it’s important that you first have an in-depth understanding of the total cost of ownership of your supply chain, including:
- Price paid for each product/service: What did you pay, and what are other facilities paying?
- Other financial implications of procurement: Is there any additional cost beyond the cost of the product or service, or because of this purchase?
- Logistics: Additional details including people, warehousing, and additional supplies.
- Management of the inventory: Where will it be housed? How much will it cost to store it? How easily accessible is it? How do you track expiration?
- Charge capture: Is your process reliable to avoid lost charges?
It’s also important to acknowledge the importance of automation. Automating requisitions, purchase orders and invoices; making sure data is synchronized; and having the ability to not only collect but also analyze data – these are all important puzzle pieces.
Looking Beyond Price
There are many ways you may be able to save money beyond re-negotiating for a better price on a product or service. Look for new and innovative ways to control costs, including (but not limited to):
- Effective management
- Better use of space (are you making the most of your warehousing/storage space?)
- Reducing waste/excess product (see our previous blog about this topic!)
- Establishing better partnerships
Power of Just-in-Time
Suture Express may be able to help you control costs in many ways, but we especially believe that the just-in-time (JIT) delivery model is the future in healthcare. JIT requires frequent small deliveries of items in quantities closely matched to the rate of use. It is demand driven and intended to help eliminate waste. Financially, it minimizes your inventory holding costs, including warehousing/storage, and requires less investment in inventory in general. JIT also offers several ways to enhance your inventory. You will see a minimal amount of inventory obsolescence; a reduction in waste due to a smaller risk of lost, damaged, or expired inventory; and better utilization of space.
Beyond the Basics
This discussion, like so many other topics in the purchasing field, could go on and on. We could consider buzzwords like invoice reconciliation, contract effectiveness, centralized purchasing, visibility, and more. If you would like to learn more about cost control strategies specific to your organization, contact Suture Express and we’ll talk about a reliable, efficient, and specialized distribution model tailored just for you.