September 1, 2023

Transforming Healthcare Procurement Strategies for Cost Savings

Transforming Healthcare Procurement Strategies for Cost Savings

Indirect spend categories, such as MRO, office supplies, and logistics, are often overlooked by pharmacos as sources of potential savings. Yet, by improving their procurement process, they can unlock millions of dollars in hidden value and enhance their resilience. How can they achieve this? 

The solution is MRO supply chain optimization. Pharmacos must standardise the practices, measure the performance, and use the appropriate tools and systems to manage the MRO supply chain. The question is not whether companies can afford to improve their procurement process, but whether they can afford not to. 
How does this work? Let’s find out in this blog; we’ll explore how adopting smarter procurement solutions by optimising the MRO supply chain can help Pharmacos cut costs.

MRO Supply Chain Optimization for Cost Efficiency

McKinsey estimates the pharma industry will lose an average of 24% of one year’s EBITDA every ten years.

How can such losses be reduced? Consider the following strategies and their benefits:

Strategic Supplier Management

Managing supplier relationships enable pharmacies to build long-term partnerships and gain greater negotiation power. It can save cost by helping you identify multiple procurement sources and reducing reliance on one supplier. 

Plus, MRO supply chain optimization can also help improve supplier performance, reduce risks, and benefit from economies of scale by establishing a clear governance structure. It can also segment suppliers based on criticality, spend, performance, and risk and develop customized strategies for each segment.

Maximizing Cost Control

Organizations can control purchase demand by minimizing consuming or procuring superfluous products. This reduces costs by lowering expenditures, eliminating waste, streamlining inventory levels, and aligning purchase decisions with clinical requirements and evidence-based practices. 

MRO supply chain optimization can assist by improving data analytics and providing visibility into MRO inventory, consumption patterns, and supplier performance.

Transforming Inventory Control

A way to improve inventory control and visibility is to centralize e-procurement and leverage technology for 100% spend management visibility, automated reports, and spending trend tracking.

This can help you save costs by streamlining your purchasing process, increasing compliance, and enhancing data quality and accuracy.

Additionally, MRO supply chain optimization can identify opportunities for improvement by using analytics tools that provide real-time visibility into spend patterns, inventory levels, and supplier performance and enable optimization and innovation.

Procure Smartly with Moglix

The healthcare industry is facing unprecedented challenges, which has disrupted the global supply chains and increased the demand for essential medical supplies. In such a scenario, pharmacos need to adopt smarter procurement strategies that can help them save costs, ensure quality, and enhance resilience. 

While supply chain risks are unavoidable, pharmacies can minimize their disruptive effects by adopting smart procurement solutions — and leading companies have succeeded in doing just that. 

A case in point is a leading vaccine manufacturer from India, which faced high inventory holding across all plants and volatile monthly MRO procurement spend due to the fragmented supplier base for MRO goods. 
By using Moglix Business’ digital platform and analytics capabilities, the company could streamline the procurement process, reduce costs by 10%, and ensure the timely delivery of critical supplies. If you want to learn more about how Moglix can help you make your supply chains more resilient, click here to schedule a demo.