Medical Supplies
CASE STUDY - MEDICAL SUPPLIES

Large New Jersey Healthcare Organization

25
Cost Reduction
70
Client Locations
1
Client Savings
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CCM team applied their category-specific expertise to successfully, create and distribute a competitive RFP, assess the service offerings, negotiate pricing and implement a new vendor program.

Objectives

  • Assess current medical supply purchase trends and understand current vendor/GPO relationships
  • Create a custom program, to optimize purchasing efficiencies
  • Identify potential distributor and GPO partners
  • Create optimizations through standardization

Results

  • Prime vendor switch, Champion-Challenger vendor management model
  • $300K savings achieved as a result of CCM pricing negotiations
  • Dedicated vendor team members and resources readily accessible to client
  • Project efficiency, CCM completed the data collection and RFP process in 60 days

Challenges

Low Visibility into Operations

  • The largest commodity spend for any medical services provider is medical supplies
  • The most efficient way to assess competitive GPO contracts is working in tandem with the medical supply distributors

Lack of Purchase Standardization

  • Every medical services provider operates uniquely, with variations that are even more pronounced across different specialties.
  • In order to create a custom program CCM had to first learn workflow and identify key procurement trends

Weak Vendor-Client Partnership

  • CCM’s experience finds the best distributors act as partners, providing price transparency and readily available resources. This was not the case with this client.

Solutions

Understand Current Workflow & Conduct RFP

  • CCM met with major stakeholders across the client in addition to collecting data from all current distributors.
  • These meetings, combined with comprehensive data analysis, enabled CCM to gain a deep understanding of the client’s current operations, forming the foundation for the RFP development.

Negotiate & Build New Program with Vendor(s)

  • CCM negotiated directly with the three largest medical supply distributors and the three largest healthcare GPO’s.
  • In conjunction with competitive pricing CCM focused on best in class service and a transparent partnership.

Vendor Dedicates Full Time Resources to Client

  • Vendor dedicated full team for implementation.
  • Full time account managers dedicated to the client one regional and one national.

Conclusion

Assessing medical supply distributors, along with the major Group Purchasing Organizations (GPOs), is critical to the operational success and financial sustainability of medical service providers. By leveraging CCM’s proven processes and deep expertise, the client benefited from best-in-class service tailored to their unique needs, highly competitive pricing structures, and access to dedicated resources. Additionally, CCM facilitates the establishment of robust vendor relationships, fostering long-term partnerships that enhance supply chain efficiency and ensure consistent access to high-quality medical supplies. This comprehensive approach positions the client for sustained operational excellence and financial optimization.

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