Learn the best way for a hospital or IDN to start the journey towards integrating a self-distribution program through global sourcing.
Going “self-distributed” is an industrial paradigm shift capable of saving large hospitals and health networks tens of millions of dollars every year. Forward thinking hospital CFOs and supply chain executives are also discovering that they are already using global sourcing in their hospital medical supply purchasing programs, but don’t realize it. The problem is, those products to which they could have direct access through the same factories are still arriving on their shelves from distributors with markups of 20-50 percent.
Once the commitment is made and the warehouse is up and running, global sourcing should enter the mix. With accurate, visible data on products and pricing and a partner with the supply chain expertise needed to deliver common, commoditized hospital products to you direct from the factory, you can successfully add global sourcing in a stepped approach.
The journey to quality improvement, risk mitigation, price transparency and massive cost savings through global sourcing is well within the capabilities of large hospitals and IDNs with self-distribution programs. It begins with a single step: pick off your highest volume products.
Becker’s Hospital Review has published the first of a five-article series detailing the key points in using global sourcing to become a self-distributed hospital or IDN. To read the full article, click here.