With pressure coming from rising raw material costs, ever more aggressive regulatory oversight of pricing, and increasingly thin operating margins, global healthcare industry players are needing to confront their cost structures in innovative new ways. Engagement with clinical decision makers, for example, is unlocking untapped value from supply chains.
Impendi understands the mission critical nature of healthcare, routinely assisting procurement teams with deep expertise and data-driven discipline as they seek to optimize costs without sacrificing patient outcomes.
Case study: Healthcare Provider
A healthcare provider with national long term assisted care, home health, and hospice networks needed assistance capturing value within its supply chain following a private equity acquisition and restructuring.
The Approach
Designed a client-centric engagement based on stakeholder interviews exploring opportunities and risks with C-suite executives, function leaders and operating partners of the private equity investors.
Utilizing AP spend data and proprietary benchmarking, completed a Spend Diagnostic that defined strategic sourcing opportunities and a value capture roadmap.
Based on a maturity assessment of the client’s procurement processes, organizational structure, and technology recommended actions plans to close the gaps within the client’s procurement function.
The Results
Find – Initial spend assessment revealed $53-$90MM in total savings opportunities across clinical and non-clinical categories.
Get – Procurement teams directed by Impendi’s sourcing experts captured $90MM in annual savings across 19 expense categories and 200+ projects.
Keep – Strategic sourcing efforts have been strengthened by a newly competitive bidding environment, the visibility afforded by Impendi’s Realized Savings Tracker, and a disciplined PMO structure.
Case study: Pharma Development and Manufacturing Services
The CEO of a pharmaceutical development and manufacturing company needed best-practice procurement support after championing a cost visibility and savings initiative focused on the company’s indirect spend.
The Approach
Conducted a client-centric assessment of opportunities and challenges based on stakeholder interviews with C-suite executives, procurement category managers, and function leadership.
Leveraging an analysis of customized spend data, contract compliance and proprietary benchmarking, a Spend Diagnostic defined a value capture roadmap with savings targets, critical levers, and time-to-value assessments.
Prioritized savings opportunities in underworked and underleveraged categories, then led a Saving Acceleration value capture initiative with client teams utilizing proprietary savings analytics tracking and stage-gated decision making with the client.
The Results
Find – Spend assessment identified $4.4M – $6.4MM of high-priority indirect savings opportunities.
Get – Within 8 months, client teams supported by Impendi sourcing experts verified $5.2MM in annual savings across seven spend categories. An additional $2.6MM of cash release was achieved from negotiated extensions in payment terms.
Keep – Progress continues amidst a newly competitive bidding environment and support from Impendi’s Contract Compliance Analytics and Realized Savings Tracker.
Case study: Medical Device Manufacturer
A medical implants manufacturer needed best-practice assistance meeting an aggressive $10MM cost takeout incremental to in-flight leveraged procurement deals.
The Approach
Conducted introductory Canvass interviews with key purchasing stakeholders along with private equity deal and operations executives to understand the landscape of opportunities and risks.
From re-categorized AP spend data and third-party benchmarking, conducted a Spend Diagnostic that identified and prioritized value capture opportunities, particularly in direct spend.
Performed a maturity assessment of the client’s procurement processes, organizational structure, and technology, complete with action plans to close the gaps within the client’s procurement function.
The Results
Find – Impendi Diagnostic identified $5-9MM in annual savings from $87MM in addressable spend.
Get – Within 6 months, captured additional savings on inflight initiatives, $6MM in incremental savings and defined a roadmap to an additional $1-2MM.
Keep – Supported client teams in advanced strategic sourcing competencies like creating more competitive bid environments and establishing upfront standards for the new product development process.
