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Strategic Sourcing in 2020: Three Key Takeaways for Healthcare Businesses

For the past several months, procurement leaders across all industries have stepped up and guided their organizations through unprecedented crisis. In the healthcare industry especially, procurement teams are playing an integral role in shaping the path forward while protecting patients and caregivers. 

The most effective teams have set their sights on a few key areas: taking operations digital, rethinking business models to preserve cash, and establishing secure, diverse, and scalable supply chains. Healthcare organizations that prioritize these strategic sourcing initiatives will better prepare their businesses for a strong recovery.

Accelerate the Switch to Digital Operations

To protect their health and adhere to social distancing standards, many patients have opted to forgo non-emergency doctor’s office visits. As a result, healthcare companies are shifting their operations to digital and virtual settings. To support this shift, healthcare procurement leaders are leveraging collaborative tools that organize their strategic initiatives and keep them connected to their stakeholders and suppliers. 

With the right technology behind them, procurement teams in Healthcare can:

  • Update key stakeholders and communicate with strategic suppliers in real time
  • Store supplier and contract data in a single source of truth for drastically reduced cycle times
  • Drive agility within the organization and ensure business continuity despite disruptions

Rethink Business Models to Preserve Cash

With significant impacts to revenue, procurement leaders in Healthcare are making cash preservation a top priority. The telemedicine’s success has unveiled new opportunities for procurement professionals to further adapt the business model and drive cost savings across the enterprise in a few key ways:

  • Partnering with strategic suppliers to find creative solutions like renegotiated minimums or extended payment terms
  • Re-prioritizing their sourcing pipeline and focusing their efforts on strategic initiatives 
  • Analyzing spend across indirect categories and identifying further opportunities to renegotiate contracts 

Strategic sourcing teams with complete visibility into their suppliers, their pipeline, and their contracts, are better equipped to manage spend and preserve cash for the business.

Embed Resilience into the Supply Chain 

Global uncertainty has thrown many value chains off-kilter as suppliers and enterprises alike work to respond to unforeseen business disruptions. Procurement leaders in Healthcare have quickly realized that in order to protect and fortify their supply chains, they need visibility beyond their Tier One vendors. Supply chain resilience is now a driver of strategic sourcing initiatives, and Healthcare procurement leaders are strengthening their supplier partnerships by:

Strategic Sourcing in the Next Normal

Procurement’s unique view into spend, risk, and supplier relationships is empowering healthcare enterprises to respond dynamically, and with agility. As a result, strategic sourcing keeps critical operations running while enabling healthcare institutions to respond with strength and resilience that will far outlast the pandemic.  

Interested in how other industry leaders are plotting the path to recovery? Find out the top three drivers that will guide strategic sourcing in the next normal.

Danyelle Guernsey | Tags: , , ,

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