Is Your Business Optimized? The Story of a Clinics Chain

Background

A chain of Cardiovascular clinics was undergoing a period of several acquisitions.

The chain's products mix was extremely "clinical-driven" with few guidelines from the central management.

In order to optimize the procurement processes and to reduce the procurement baseline, it was necessary to perform a harmonization of services and materials procured across the clinics.

The chain asked for Tefen's help, in order to achieve 10% savings (annually) on the procurement baseline (~€ 30mil) in less than one year.

Methodology

To achieve these goals, Tefen has performed the following three steps:

1. AS-IS analysis of materials and services spend, in term of demand (e.g. mix of products; quantity per procedure), including price and comparison of performance across clinics
2. Run tenders or contracts renegotiations; Produce guidelines to optimize demand management (e.g. establish a new optimal mix and alignment across clinics)
3. Monitor contracts' utilization and demand management harmonization across the clinics

Results

As a result of the project, the clinics chain achieved 2m €/year-savings immediately after 5 months. 

The chain also achieved 4.5 M €/year savings on 30m €/year baseline (~15%).