Category: Expense Reduction

Did You Know That Standardization Can Cost You Money?

Did You Know That Standardization Can Cost You Money?

Not all standardization is good for your healthcare organization’s bottom line. For over 40+ years, the healthcare supply chain industry has espoused standardization as a technique of choice for reducing and controlling their  costs. I cannot argue that if implemented strategically this will definitely reduce your supply costs. Unfortunately, we have seen hundreds of supply […]

The Seven-Percent Savings Solution

The Seven-Percent Savings Solution

Why do we continue to pursue 1%, 2% or 3% savings solutions (i.e., price), when a 7% savings solution (i.e., utilization) is just as easily obtainable? For instance, I know of healthcare organizations that have spent months to achieve a 3% savings on their cardiac rhythm management products, when a 7% to 15% savings was […]

Control and Verify Your Savings Before, During and After Implementation

Control and Verify Your Savings Before, During and After Implementation

Assume nothing, verify everything with your own eyes! Did you know that the word “savings” is the most misunderstood word in our supply chain business? We use it every day to describe cost reductions and cost avoidance, and then report it to our bosses as gospel, but do we really know what the word “savings” […]