Align with key high spend vendor executives that want to have a long-term partnership which is beyond just transactional functions. First objective is to develop overlay rebates so any growth would be financially awarded.
Both parties need to be focused on the TOTAL COST of care, not just the price of the product. Critical to have collaboration of Supply Chain, Vendor, clinical staff and key stakeholders.
Mutual trust, aligned goals, dedicated resources, and assess to Vendor programs for strategic partners.Success
Competitive contracted pricing, improved collaboration and problem solving resulting in better outcomes.
- Establish closer working relationships between dedicated liaisons to coordinate activities. Frequent communications with management. Work together with ALL the divisions to look at Total Cost, seek long term results, cost control and savings.
- Master Terms and Conditions, overlay rebates for maintenance and growth.
- Potential Cost Savings Project reviews in order to benefit from rebates as well. Assistance with project implementation.
- Logistic attention including Distribution Contracts, data reviews, address chronic price problems.
- Non Catalog Review.
- Open Communication: The vendor and customer show a willingness to discuss difficult issues, understand each other’s point of view, be flexible to find fair and mutual solutions.
- Effective Liaisons: Dedicated resources on both sides to help manage account.
- Long Term Perspective: Not limited to only doing short term transactions.
- Mutual Satisfaction: Alignment and prioritization of goals for win-win solutions.
- Active Collaboration: Between executives, Vendor representatives, Supply Chain, and clinical stakeholders.
What is Strategic Sourcing?
What it is:
- Focused on the Total Cost of Ownership (TCO) incorporating customer needs, organizational goals, and market conditions
- Getting the best product/service at the best value
- Driven by a rigorous and collaborative approach
- Addresses all levers for savings
- Decisions based on fact based analysis and market intelligence
- A continuous process
What it is NOT:
- Focused ONLY on cost
- Getting the cheapest product/service
- Ad-hoc activities involving only purchasing
- Focused on "beating up suppliers"
- Decisions based on opinion, unjustified preference, or complacency
- A one-time project or decision
- Vendor relationship that is only transactional