The Challenge 

The objective for Procure4 was to review the quality, range and pricing of a wide group of product and service categories for a leading private hospital group. 

It was imperative that all products and services were fit for purpose and met end user performance requirements.  We needed to create and manage a robust financially controlled project to ensure transparency and clear visibility of savings and supplier performance.

The Approach

The total spend in scope was c£20m and included 8 categories, the most significant of which were Bio-medical equipment maintenance, agency staff, Facilities management, office supplies and the food and drink distribution contract.

In order to achieve the necessary savings on the addressable spend; an effective Cost Base Reduction (CBR) plan was implemented. 

A clearly defined work-stream was identified; this included creating a baseline and then drawing on our partnership with the world leading Group Purchasing Organisation to benchmark prices of key items and then an approach strategy was carried -out and savings maximised

The Results

Overall the savings delivered were in excess of 10%, with the variance in performance across the categories ranging from 6% to 30%.  The value driven out by the CBR project was captured through robust auditing and on-going financial tracking, giving a clear visibility of savings across the organisation. This was critical in motivating the all stakeholders to support the changes to the supply chain.

By taking an innovative approach, we were able to engage both internal stakeholders and suppliers such that they fully supported the changes that were necessary to drive significant value for the organisation