purchaser / supplier global relations: what do buyers expect? megan main chief executive health...
TRANSCRIPT
Purchaser / supplier global relations: what do buyers expect?
Megan Main
Chief Executive
Health Purchasing Victoria
4 November 2014
What do buyers expect?
The basics: “one way” expectations Honesty and fairness in dealings Fair value / price Adherence to policy, contract terms Compliance with standards GS1 compliance
But there’s more!
Health Purchasing Victoria | Achieving best-value supply chain outcomes for Victoria’s health sector2
3
Tota
l Cos
t of O
wne
rshi
p
Price
Easier To See
Harder To See
Process CostSourcing Cost
Evaluation/Order Mgmt
Returns MgmtLogistics MgmtSupplier MgmtRecall Mgmt
Compliance MgmtTraining
Payment MgmtInspection
3
Utilization CostStandardizationDemand Mgmt
Labour ProductivityMaintenance
ShrinkageDamages
WasteDisposal
Recall MgmtRevision Procedures
Infection RatesEtc.
Price savings alone are NOT sufficient
TOTAL COST
Hospital Cost
Supply Chain Cost (Hospital)
Order ProcessingInventory
PURCHASE PRICE Transport
Supplier Cost
Supply Chain Cost (Supplier)
Order ProcessingInventoryTransport
ProfitSales
Selling Cost
Product CostResearch,
Manufacturing, Packaging, etc
We must work together to reduce cost
SUPPLIERNETWORK SUPPLY CHAIN
PROCESSESCLINICAL CARE
NETWORK
Goods & Services
PATIENTS
Source
Buy
Deliver
Category
Management
Contract
Management
P2P
Logistics
Management
Materials &
Inventory Mgt
Think and act as a system Integrated supply chain processes
Supplier Relationship ManagementCustomer Relationship Management
Buyer-Supplier Collaboration
Supplier Performance Management
Nir
van
a
Lo
st V
alu
e
Buyer - Supplier collaborationVa
lue
Time
Contract Start Date
No Supplier Relationship Management Program
6
“75% of sourcing savings can be lost within 18 months without SRM” - Geller & Company Survey