Easily
Benchmark, Manage and Save on ALL
Your Purchase Services with
BenchPlus+
TM
Did You Know that You Could Be Leaving Up to 18% in New Savings on the Table
Untouched?
We would all like to think that we have total control over all of our
supply chain expenses. From our experience, however we can say
emphatically that this just isn’t true. One big expense category
has been universally neglected – purchase service spend. We haven’t
been managing and controlling all of our purchase service contracts,
from elevator maintenance to transcription services, that countless
hospitals, systems, and IDNs have a dollar value equal to or greater
than their supply expenses.
We have found this category of purchase to be a new unclaimed
gold mine for supply chain professionals. To ensure your healthcare
organization’s continuing financial health, you must pay more attention
to these elusive expenses. “Getting back to the basics” will help you
move forward to even more savings for your healthcare organization.
The final piece of the puzzle
Now that your prices are under control, standardization is complete, and
utilization is on most hospitals radar screens, the remaining piece of
the supply chain puzzle is to effectively manage and control your
purchase service contracts.
By doing so, you can save 11% to 18% on this spend category. From our
experience, this spend category is the easiest way to save money,
since you generally only need to convince a few customers to make a
change in their practices as opposed to hundreds of individuals in other
categories of your supply spend such as pacemakers, orthopedics,
dressing trays, catheters, or custom packs.
We have found that there are hundreds of thousands of dollars to be
saved in telecommunications expenses. Just last month a client of ours
wrapped up a telecommunication project that saved them $720,295. They
were able to do this since no one has been watching or scrutinizing this
category of purchase service, or any other purchase service contract
they had on file.
Another one of our clients is on track to save $4,594,882 (or 24.6%) on
their total purchase service spend because they have made it a priority
to do so. In no other commodity group, with the exception of
utilization, will you find these gigantic kinds of savings - Not
in price, not in standardization and not even in your value mismatches.
How to attack these big savings
To attack these savings, you will first need to broaden your supply
chain department’s scope and authority to include all purchase services
contracts. You can build a case for change by showing your C-suite how
much they are spending on this category of spend and what the savings
potential (11% to 18%) is if you were put in charge of this spend
category.
Second,
you need to centralize all of your hospital’s purchase service contract
files
(if you don’t have contract archival software, you might want to check
out our
BenchPlus™
Purchase Service Manager)
and their administration under your materials management department. If
the workload justifies it, you will need to hire a contract
administrator to manage, control, analyze, bid or negotiate these
contracts.
Third,
you will also need a benchmarking power tool like our
BenchPlus™
Purchase Service Manager to ensure that their total lifecycle costs are
within acceptable limits. Otherwise, how would you know if there are
savings opportunities if you don’t quantify them and have a roadmap to
start saving?
Lastly,
you will need a subscription service like our
BenchPlus™
Purchase Service Manager to trend and track the performance of your
contractors to identify spikes in your utilization cost and to ensure
that they are conforming to requirements. Why is this important?
Just last week we reviewed an IV pump rental contract for one of our
clients and found that they used 2,252 more IV sets than originally
estimated, yet they didn’t get a price break for doing so. We also
noted that their pump set cost went up 28% during their four-year
contract period, but no one questioned it. This is why you can never
take your eye off the ball even after you have signed a supposedly
cost-effective and value-justified new or renewal purchase service
contract.
It is a deep dark secret that many healthcare organizations don’t have
this huge supply spend up on their radar screens, and in many instances
it is their biggest supply chain expense category. It is now time to get
control of these liabilities where there is the greatest legal and
regulatory risk exposure for your healthcare organization. At the same
time, wring the towel dry in savings that are ripe for harvesting.
|
One of the best features of our
BenchPlus™
Purchase Service Manager is our
library of
purchase service “best practices” -- developed and client tested
over the last three years -- that will guide you through the
process of reducing your price, standardization and utilization
costs on all of your purchase services. This is in addition to
our LIVE Advisory Service! |
Isn’t it Time you have a Proven Power Tool
to Capture all of these Elusive & Hard to Get at Savings?
If you don’t have a power tool like our
BenchPlus™
Purchase Service Manager to manage and control your purchase service spend
it is almost impossible to totally control the millions of dollars you are
now spending on your service category. With our advanced power tool we can
guarantee that you will be able to:
1. Capture
all your purchase service spend in one easy-to-use, intuitive and secure
archive.
2. Benchmark
all of your purchases services
to quickly uncover your best
savings opportunities in the range of 11% to 18%.
3. Track
and trend
the performance of your contractors, against predetermined or history
standards, to identify spikes in your utilization cost.
4. Manage
all of your purchase service contract details (who, what, when, and
where and how much) with our “contract driver” feature, so you never
miss a due date again.
5. Select
from a library of purchase service “best practices” -- developed and
client-tested over the last three years -- that will guide you through
the process of reducing your price, standardization and utilization cost
on all of your purchase services.
That’s not all!
We will also provide you with a dedicated LIVE advisor who will assist you
in the interpretation of the data and strategize with you to make your
savings happen.
|
Note:
Our
BenchPlus™
Purchase Service Manager’s monthly subscription service can be
cancelled at any time for any reason. No
long-term commitment! No long-term risks! |
Top 10 Reasons Why
BenchPlus™
Might be the Right Service at the Right Time for You!
10. It can save you 11% to 18% on your services within 18 months.
9. It can uncover services savings that are hidden from your view.
8. It can save you hundreds of hours of research and development.
7. It can make your job quicker, easier and more productive.
6. It can find purchase service contracts you never knew existed.
5. It can give you a dashboard that tells you all you need to
know.
4. It can do the heavy lifting for you, so you have time to think.
3. It can keep you more organized and on top of your game.
2. It can capture all of your contracts details in one place.
1. It is much easier than managing your services with
spreadsheets.
Best of all,
it can give you the peace of mind that all of your purchase service
contracts are under control, competitive and waste free…
Double-Your-Money-Back Guarantee…
To ensure that our offer to you is RISK FREE,
we will guarantee that if you don’t save twice as much as our monthly
subscription fee after one year. We will write you a check for double the
fees you paid us for the service!
Robert T. Yokl
President
& Chief Value Strategist
