Healthcare
Category: Medical Packs
Savings: $803,000
Bellin Health System, is an integrated health care organization. Since it opened in 1907, it has not only aimed to provide the best patient care, but it has also tried to be the most efficient and innovative in terms of organizational processes and procedures. For this reason Bellin Health decided partner with TradingPartners when the time came to renew a contract for custom medical packs.
The existing three year contract for custom packs was up for renewal and Bellin Health hired TradingPartners to help source new suppliers and utilize our spend negotiation process to see if they could save money and time by not having to go through the traditional, laborious RFP process.
Kayne Coleman, Director of Materials Management at Bellin Health said, “We heard about TradingPartners through another healthcare organization and decided to hire them as we knew they had the necessary experience and technology to assist us with this project.”
Bellin already had two suppliers who were due to bid for the new contract. Through extensive supplier augmentation research, TradingPartners sourced three more. All five suppliers were issued detailed specifications. All five of the suppliers were successfully pre-qualified to meet the price and standards required by Bellin Health and all five were invited to quote.
After three weeks sourcing and researching suppliers, the spend negotiation event took place. All five suppliers accepted the entry bid level and agreed to take part. The negotiation lasted 91 minutes and during this time, the five suppliers submitted 86 bids for the contract, culminating in a final saving of $803,000. Bellin Health was delighted with the speed, efficiency and results of the project. Kayne Coleman said, “This is the first time we have used an online spend negotiation but it definitely will not be the last. The innovative process saved us not only money, but time. We are very pleased and we are now looking at other categories to negotiate.”