As the dust settles from the pandemic, healthcare procurement is changing. Procurement leaders face a host of challenges: uncertain economic climates, persistent supply shortages, and evolving operational settings. Amid these hurdles, efficiency emerges as a cornerstone of success.
According to the over 170 leaders surveyed for a 2024 report, efficiency is one of three imperatives shaping procurement’s future (alongside quality and innovation).
The three ‘P’s of Procurement Efficiency – Price, Process, and Product – are now the pillars that hold up successful operations. Each pillar serves as a roadmap for navigating an increasingly complex landscape.
Price: A Delicate Balancing Act
Reducing costs while maintaining quality is a top priority for procurement leaders. The pandemic’s aftermath left many dealing with tightened budgets and rising costs – a difficult challenge.
As Jack Koczela, director of analytics and transformation, supply chain, at Froedtert Health explains, “In the days of very slim margins or negative margins, we are being asked to save the organization money.” Achieving cost efficiency, therefore, requires innovative, clever thinking. It’s about digging deeper into non-labor expenses and seeking transparency to make informed budgetary decisions.
Cost containment, however, must never compromise safety and quality. With robust data analytics as a guide, organizations can strike a balance, ensuring resources are allocated wisely without sacrificing essential safeguards. This approach streamlines expenditures and fortifies the foundation of healthcare delivery.
Process: Streamlining for Success
The benefits of refining processes go beyond cost. Leaders are keen on optimizing the procurement journey, from ordering to demand foresight.
According to Healthcare Purchasing News, procurement leaders focus intently on streamlining order processes, increasing procurement efficiency, and accurately forecasting demand. Yet, navigating market fluctuations and regulatory landscapes presents problems.
Trimming the excess in a procurement cycle fraught with repetitive tasks and inefficiencies begins with deep analysis. By identifying bottlenecks and employing strategic simplification, organizations can improve resilience. Experts recommend solutions like consolidated inventory data and transparent supplier collaboration, yielding a robust framework capable of weathering economic storms.
Product: Reducing Waste, Maximizing Availability
The final ‘P’ focuses on eliminating waste while ensuring product availability.
As demand for critical supplies fluctuates, timely access becomes imperative. Here, technology takes the helm. AI-driven data analysis offers insights that minimize waste and optimize product usage.
The transformative power of emerging technology may save the day. AI and machine learning can swiftly surface valuable insights from vast data pools. This high-tech toolset empowers procurement leaders to anticipate needs, reduce backorder dependence, and maintain a steady flow of essential supplies.
As healthcare procurement progresses, the three pillars – Price, Process, and Product – will be critical guides. They chart a course through today’s challenges to a future where efficiency, quality, and innovation seamlessly unite.
At Finsen Tech, we are ready to support this journey, offering solutions that marry advanced tech with tested reliability. With every order, we aim to ease the procurement burden. Together, we’ll shape sustainable and flourishing healthcare.
Discover more at FinsenTech.com.
