Businesses worldwide, including the healthcare sector, are making indirect spending an important strategic priority for cost reduction. These are the costs associated with purchasing goods or services that do not influence your facility’s solutions in a significant way. Indirect spending may seem small, but it can greatly impact your business’s bottom line. However, having a Group Purchasing Organization by your side can ensure that you have access to many savings including indirect costs, from leading vendors while mitigating risks and providing overall cost savings for your business. Let us see how GPOs can help reduce your healthcare facility’s indirect spending.
Category Experts Are Stakeholders
The category experts can supply professional category knowledge and customized recommendations. You can utilize your GPOs portfolio of category offerings to aggregate your indirect spending. This can give you the maximum value from current programs and help you better manage the contract components with your supplier. With this, you can save up to 10-40% on indirect materials and services by aligning your company’s objectives to your spending categories and validating savings to explore further opportunities.
Simplified Supplier Sourcing
When selecting suppliers for your indirect spending program, GPOs can help you identify savings and cost reductions without compromising quality. It acts as an advisor and enables you to have in-depth conversations with the suppliers so that they can provide insightful data and the performance of their company. They may also discuss the objectives that you would like to achieve with your new program and also run an analysis to provide you with a detailed understanding of unique requirements for your facility in order to make it easier for you to set program goals and objectives and thereby determine the best way to measure progress. Pre-negotiated contracts with the best medical equipment companies in Dubai will make it easy to source the indirect products your facility relies on daily to keep it going.
Centralizing The Purchasing Process
Working with the right GPO can be the best way to ensure that category management is handled by experts, from sourcing to performance. A GPO will manage the negotiations with suppliers, from material to pricing, and ensure compliance. This will centralize and automate the process, thus giving your business a comprehensive picture of its overall spending while optimizing your facility’s efficiency. Therefore, a GPO can prevent your business from leaving money on the side table. Since most GPOs implement a technology-forward strategy, they can help enhance your indirect procurement of services by providing access to a robust, end-to-end marketplace solution. This boosts process automation and purchasing efficiency.
Cost Savings Along With Metrics Tracking
A GPO can give your organization real-time spending visibility and indirect spend analysis, both of which are critical for optimizing cost savings, better decision making and achieving the sum and substance.
So, these are some of the ways GPOs can help you reduce your indirect spending through their expertise and by assisting you with your procurement needs at every step. The GPO programs are perfect for tidying up indirect spending and reducing costs.