Product Development and Launch- Healthcare Supply Chain ROI Analytics Tool

As the healthcare industry began the transition from manual procurement processes to EDI based transactions, the savings promised to be impressive. However, with the creation of a new trading exchange, which provided additional transparency and supply chain savings within the industry, savings were predicted to increase dramatically over EDI.  

 

Demonstrating these potential savings to customers and industry leaders would drive the need for critical metrics and data to support these claims and to identify areas where cost reductions could be achieved.

Solution

We created a value analysis tool capturing each step of the manual procurement process and compared the results to those using a highly transparent exchange between providers and suppliers.  We could then effectively communicate the enormous value of supply chain visibility and automation to the healthcare community. 

 

Stages of Development:

  1. We created an interview and ongoing data gathering process from providers and suppliers to outline each step of the procure to pay process (over 200 facilities) to develop industry averages for tool build out

  2. We identified and validated the industry average costs:

    • Associated with the manual ordering environment (taking into account their ERP or MMIS system and associated item master as errors can be derived due to a lack of consistency)

    • Associated with the EDI purchasing process  (taking into account various connections)

  3. We performed a comparative analysis of the three order process types (Manual, EDI, the Exchange)

  4. We provided insight into every activity, process and associated costs and time (Manual, EDI, the Exchange)

  5. We validated all insights derived from industry partners, customers (ongoing), and third-party auditors

  6. We created flexible dashboard views for the customers' unique needs

  7. We trained Sales on value assessment tools and supported the Sales team in presentations as needed

  8. We continued to validate within the healthcare industry, internal stakeholders including third-party validation, flexibility within the tool with market changes and new products added to the exchange, adding additional value

Results
  • The Value Analysis Tool was used in the close of 72% of all new sales. 

  • We created a standard for industry averages for costs and resources associated with various purchasing methodologies also taking into account the size and type of facilities. 

  • We provided flexible tools for value studies and analysis and further collaboration with customers.

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