SUCCESS STORY
14% cost base reduction
Smarter Sourcing for a Healthcare Provider
- Achieving cost reductions without compromising care quality
Outcomes
Across supply chain, including 40 categories in both direct and indirect spend areas
Supplier Consolidation and Control
Streamlined supplier base and better IT systems and disciplines will support long-term improvements
BACKGROUND
One of the UK’s largest care providers, with over 200 care homes and more than 12,000 beds, faced rising operational costs and inconsistent procurement practices.
With the business continuing to grow, leadership needed to ensure its supply chain and procurement functions were fit for purpose and cost-effective.
the challenge
The core challenge lay in balancing significant cost reduction with the need to maintain, and in some cases improve, the quality of products and services essential to resident care. Procurement processes lacked consistency, and the supply chain was not set up to scale efficiently with the company’s growth.
Key categories such as temporary recruitment, consumables, and utilities suffered from supplier fragmentation, process inefficiencies, and limited commercial control. The procurement function needed to evolve from tactical cost management to a more strategic, structured capability that could support long-term performance.
SOLUTION
- Conducted a full review of spend and prioritized 28 opportunity categories. Focus areas were selected based on potential savings, business impact, and alignment with strategic goals
- Tailored sourcing and supplier engagement to reflect the operational needs of each category. Working closely with stakeholders ensured solutions were practical and wouldn’t compromise service standards
- Delivered fast-track savings in operational areas while managing long-term changes carefully. Some categories delivered savings early; others required phased implementation to manage supplier and process changes
- Established strong governance and built trust with key stakeholders. This ensured alignment across the program and helped embed sustainable improvements in procurement discipline
P4102