Procurement market intelligence company SpendEdge, worked with a healthcare facility to improve their supply chain resilience and decrease the input costs.
The facility wanted to improve its supply chain’s resilience and monitor potential risks on a regular basis. The healthcare company was also concerned about increasing input costs.
According to SpendEdge, the supply chain for medical devices is intricate and scattered and is extremely vulnerable to various problems. One of the biggest challenges in the supply chain of medical devices is achieving cost efficiency.
After analyzing the client’s challenges, the SpendEdge team of procurement experts decided to carefully study the intricacies of each requirement to create a bespoke solution for the client’s business model.
SpendEdge worked with its healthcare client to select a more suitable supplier that would be able to withstand unpredictable market conditions. It does this through supplier shortlisting, focusing only on those suppliers who can meet a client’s requirements and better handle market fluctuations. SpendEdge also keeps clients informed on market trends with analysis that allows them to categorize suppliers into quadrants based on their operational and functional capabilities. From there, clients can rank suppliers to determine the best fit.
The company’s analysis of market trends and supply chain risks also enabled the company to monitor and address any potential risks in a timely manner. SpendEdge’s platform allows clients to trace and track supply-side vulnerabilities using origin and transit data and optimize the supply chain through continuous KPI improvements.
By prioritizing sustainability, clients can boost brand reputation and achieve higher sustainability scores, according to the company. SpendEdge’s risk scores help clients to frame their supply chain decisions.
By using SpendEdge’s cost models, the healthcare client was able to determine the actual cost of certain critical medical devices and instruments and engage with suppliers that offered products at similar prices.
The cost models allow clients to examine every cost component to improve budget forecasting and planning and helps manage price volatility risks efficiently. By predicting the impact of price volatility, clients can respond to risk scenarios quickly and effectively.
SpendEdge’s analysis of the true cost of medical devices can also strengthen negotiations with suppliers. Clients can use the analysis to identify the best suppliers for long-term engagements and avoid price hedging by knowing future price trends of components/services.