Best Practices to Optimize Supplier Onboarding in Hospitals
You know how time-consuming and tedious supplier onboarding can be for hospitals and healthcare systems. According to the Institute for Supply Management, the average time for onboarding suppliers for large organizations is roughly six months; chances are your organization would find that amount of time for onboarding unacceptable.
With constant pressures to reduce costs and increase efficiencies, you need a streamlined process to get new vendors up and running as quickly as possible.
At the same time, you have to ensure you’re meeting all the necessary compliance and regulatory requirements. It’s a tricky balance, but follow these best practices and you’ll have a supplier onboarding process that’s optimized for success.
First, centralize and standardize the steps involved, from initial contact through contracting and beyond. Make use of automation where you can to reduce repetitive manual work. And most importantly, communicate frequently with your new vendors to make sure there are no surprises on either side. If done right, supplier onboarding doesn’t have to be a hassle – it can be an opportunity to build strong, long-term partnerships that benefit both parties. With the tips in this article, you’ll be onboarding new suppliers efficiently and effectively in no time.
The Importance of Vendor Onboarding for Hospitals
Vendor onboarding is key to optimizing your supply chain and ensuring high-quality patient care. As a hospital, you have a lot riding on choosing the right suppliers and properly onboarding them.
Streamline Processes
Well-designed onboarding processes reduce costs and increase efficiency. By automating paperwork and digitizing records, you’ll save time and money. Electronic portals where vendors can upload required documents and fill out information in a standardized format are ideal.
Mitigate Risks
Proper onboarding mitigates risks to patients, staff, and your organization. Checking credentials, certifications, and compliance helps avoid issues down the road. Be sure new vendors understand and agree to your hospital’s values, standards, and policies in writing. Conduct site visits when possible to evaluate operations in person.
Ensure Safety and Quality
Onboarding impacts patient safety, so scrutinize new vendors thoroughly. Review service histories, talk to references, and evaluate product or service quality. Once onboard, conduct periodic re-evaluations to make sure standards don’t slip. Patient well-being depends on the integrity of your supply chain.
Build Partnerships
A good onboarding process sets the foundation for a long and productive partnership. Take time to understand new vendors’ capabilities and limitations to find the right fit for your needs. Explain your hospital’s priorities and constraints as well so vendors know how to best support your mission. Open communication and transparency build trust in the relationship.
With mindful onboarding of valued partners, you’ll gain a secure, cost-effective, and high-quality supply chain—and provide the best care for your patients. Isn’t that the most important goal?
Steps for Streamlining Supplier Onboarding Processes
Streamlining your supplier onboarding process can save time, reduce costs, and get new vendors up and running as efficiently as possible. Here are some steps to optimize your hospital’s supplier onboarding:
Assign a dedicated point person to manage the onboarding checklist for each new supplier. This helps ensure nothing falls through the cracks and provides the vendor with a single contact to guide them through the process.
Automate whatever parts of the process you can. Things like online forms, e-signatures, and automated email reminders can speed up steps like contract signing, compliance documentation, and scheduling orientations.
Create a clear communication plan. Meet with the key stakeholders early on to define objectives, priorities, and metrics for success. Put the plan in writing and share it with the new vendor so everyone is on the same page from the beginning.
If onboarding happens in person, designate a physical space for the vendor to work during onboarding. Providing office space, a desk, and network access helps the vendor get up to speed and gives them a home base as they learn about your organization.
Schedule a vendor orientation and initial training. Walking the vendor through your facilities, systems, and processes helps them integrate into your operations as smoothly as possible. Orientations should include key policies, contacts, and next steps.
With efficient planning and leveraging available technologies, streamlining your supplier onboarding is absolutely achievable. Following these best practices will ensure your new vendors get up to speed quickly so you can focus on what really matters – providing the best care for your patients.
Leveraging Technology to Automate Onboarding Tasks
Leveraging technology for supplier onboarding in hospitals is key to streamlining the process and reducing manual work for employees. Automating repetitive tasks frees up staff to focus on high-value work.
Utilize a Self-Service Onboarding Portal
Allowing vendors to fill in their own information when it’s most convenient for them saves your team from having to chase down documents or search the internet for any information that’s missing. Self-service portals also allow suppliers and vendors to update their information whenever anything changes, which means your supplier data is more accurate and useful. Onboarding portals like SupplierGateway’s portal can be customized to suit the various supplier types your hospital system utilizes, which means the onboarding experience is specific to the vendor type onboarding, making the process of filling out documentation much faster.
Automate Data Entry
To save suppliers even more time during the onboarding process, SupplierGATEWAY’s Onboarding software can automatically populate electronic forms with information from the vendor profile. Fields like contact details, tax IDs, and payment terms only need to be entered once. The data is then synced across all relevant systems. This reduces duplicate data entry, saves your vendors time during onboarding, and ensures consistency across all your systems.
Digital Document Signing
Having suppliers physically sign multiple copies of agreements and send them back is time-consuming. Electronic signature solutions let you send documents for e-signature directly from your onboarding platform. Vendors can review and sign anywhere, speeding up the contract finalization process. Digitally signed documents are automatically filed in the appropriate systems.
Seamless Communication
Onboarding software enhances communication between departments by centralizing supplier information and documents in one place. Stakeholders from IT, finance, and legal have visibility into the onboarding progress and can pick up where others left off. Email notifications alert teams when it’s their turn to review and approve. This level of connectivity drives efficiency and reduces the time it takes to onboard new suppliers.
Increased Compliance
Automated workflows ensure all necessary steps are completed in the proper order. Checklists prompt teams with required approvals and documents at each stage of onboarding. Automated validations catch errors and incomplete information early on. By systemizing and standardizing processes, hospitals can onboard vendors compliantly and confidently.
Leveraging onboarding technology for hospitals reduces tedious work, mitigates errors, enhances compliance, and increases connectivity between teams. While initial investment may be needed, the long-term gains in productivity and efficiency make the business case for automation software quite compelling. The future of vendor onboarding is digital, automated, and optimized.
Building Strong Supplier Relationships Through Onboarding
Building strong relationships with your suppliers is key to optimizing the onboarding process. Foster open communication and set clear expectations from the start.
Meet Regularly
Schedule recurring meetings with vendors during onboarding and beyond. This allows you to address any questions or concerns, provide feedback, and make sure you’re both on the same page regarding the next steps. Meeting regularly, whether weekly or monthly, establishes a collaborative partnership and builds trust.
Share Key Documents
Provide vendors with any policies, procedures, or other materials they need to understand to properly onboard. This includes things like:
Code of conduct
Compliance documentation
Standard operating procedures
Key performance indicators or service level agreements
Supplying this information upfront eliminates confusion and helps vendors meet your requirements and key performance targets. Brief them on any changes to documents or processes as well.
Designate a Main Point of Contact
Assign a primary contact person for vendors to direct questions to during onboarding. This single point of contact allows for clear, consistent communication and helps vendors get the information they need in an efficient manner. The main contact should be thoroughly versed in the organization’s vendor management program and able to address any issues. Consider a backup contact as well in case the primary contact is unavailable.
Evaluate and Provide Feedback
Review vendor progress and performance regularly, especially in the initial onboarding period. Offer constructive feedback and suggestions for improvement. Be open to feedback from vendors as well on ways you can strengthen the relationship or improve your internal processes. Continuous evaluation and feedback helps to ensure vendors meet key milestones and make necessary adjustments. It also reinforces your commitment to partnership and collaboration.
Maintaining open lines of communication, providing the resources and information vendors need, designating key contacts, and giving constructive feedback are best practices for developing valuable, long-term relationships with suppliers. Strong partnerships built on mutual understanding and trust will optimize the onboarding experience for both parties.
Measuring and Improving Onboarding Programs Over Time
Once you have an onboarding program in place, you need to determine whether it’s achieving the desired results. Measuring key metrics over time can help assess the effectiveness of your onboarding and identify areas for improvement.
Time to Complete Onboarding
Track how long it takes vendors to become fully onboarded. If it’s taking longer than expected, your onboarding may need strengthening. Consider further segmenting your supplier types to tailor the onboarding experience more explicitly, and increase communication via check-ins with the supplier during the onboarding process.
Feedback and Surveys
Survey new vendors at 30, 60, and 90 days to get their input on the onboarding experience. Ask how long it took them to complete the process, what could be improved, and their level of satisfaction. Look for trends in the feedback and make adjustments to your program.
Continuous Improvement
Review metrics and feedback regularly and update your onboarding program every 6-12 months. Keep what’s working, and revise or replace what’s not. Onboarding should be an evolving process that adapts to changes according to your organization’s needs as well as your vendor’s needs. With ongoing measurement and refinement, you can optimize your program to achieve maximum results.
Conclusion
By focusing on streamlining your onboarding workflows, providing thorough training, maintaining open communication, and building solid relationships, you’ll be well on your way to mitigating risks, reducing costs, and improving patient care through high-quality vendor partnerships.
The time you invest upfront in onboarding new suppliers will pay off hugely down the road. While change can be challenging, viewing suppliers as collaborators in care will help make the transition as seamless as possible. Keep at it and before you know it, you’ll have built a network of trusted partners helping your hospital operate at its best. The patients and community you serve will reap the benefits.
Why Hospitals Need Robust Vendor Badging Programs
You walk into the hospital for your shift as a nurse, expecting just another day of helping patients. But when you arrive on your floor, you notice an unfamiliar face wheeling a large cart down the hallway. The person isn’t wearing an ID badge and doesn’t know where they’re going. Your heart skips a beat. An unauthorized person has accessed your hospital, and who knows why they’re there or what they intend to do.
This alarming scenario highlights why hospitals need stringent vendor credentialing and badging programs. Anyone allowed access to your facility should be properly vetted and identified. Patients, staff, and assets should be protected at all costs. Requiring strict ID for all vendors protects your hospital, patients, and staff from potential harm or theft. No hospital can afford to be lax about who comes and goes within their walls. Comprehensive badging and vendor management help ensure that your facility remains a place of healing, not a target.
What Is Vendor Credentialing and Badging?
If you work in a hospital or healthcare facility, you’ve likely seen vendor representatives walking the halls with badges. But what exactly are vendor credentialing and badging?
Vendor Credentialing
Vendor credentialing refers to the process vendor sales representatives must complete to gain access to a healthcare facility. This typically involves a background check, verification of licenses or certifications, and approval from department heads. The goal is to ensure vendors meet the facility’s standards before allowing them access to patient care areas or sensitive information.
The Importance of Proper Badging
Once credentialed, vendors are issued identification badges that must be visibly worn at all times within the facility. These badges help staff quickly identify approved vendors and prevent unauthorized access. Strict badging also improves safety by controlling which areas vendors can enter based on their credentials and business needs.
For example, a medical device rep may be granted access to operating rooms or intensive care units to provide product support, while a pharmaceutical rep may only be allowed in non-patient care areas. Enforcing vendor badging helps avoid confusion, ensures the right vendors are in the right places, and gives staff peace of mind that facility security is a top priority.
Proper vendor credentialing and badging provide multiple benefits for hospitals and healthcare systems. When implemented thoughtfully, these programs can improve safety for patients, staff, and vendors while streamlining facility operations. After all, healthcare facilities have enough to worry about without concerning themselves with who has access to what. Vendor badging handles all of that, allowing staff to focus on what matters – patient care.
The Benefits of a Strong Vendor Credentialing Program
A solid vendor credentialing program is essential for any hospital. It helps ensure compliance, mitigates risk and protects patients.
Compliance
Vendor credentialing verifies that all third-party providers meet requirements set by governing bodies like The Joint Commission or Centers for Medicare and Medicaid Services. Without proper oversight, hospitals could face major penalties for violating regulations.
Risk Management
Proper screening and onboarding of vendors minimizes liability risks. It guarantees vendors have the proper training, background checks, and insurance coverage to work in a hospital setting. This protects the organization from legal issues that could arise from subpar vendor performance or conduct.
Safeguarding Patients
Perhaps most importantly, vendor credentialing helps keep patients safe. It prevents unauthorized access to patient data, medical equipment, drugs, or other sensitive materials. Only credentialed vendors with a legitimate need to access patient care areas or information are allowed to. This protects patient confidentiality, privacy, and physical security.
In summary, hospitals should invest in a comprehensive vendor credentialing program. While it requires time and resources, the benefits of compliance, risk management, and patient safety far outweigh the costs. Patients trust that hospitals will protect them, and a robust vendor credentialing program is key to upholding that trust.
The Risks of Unvetted Vendors in Healthcare Facilities
Vendors provide essential services to hospitals, but unvetted access also introduces risks. As a healthcare facility, you need to properly vet suppliers to avoid compromising security or care.
Data breaches
More than half of hospitals have faced data breaches from third-party vendors recently. Vendors with access to patient data or hospital networks can be targets for hackers and cybercriminals. Without proper vetting, you may grant access to a vendor with lax security practices, putting sensitive data at risk.
Quality of care
Quickly swapping in new vendors can disrupt care delivery or supply chains. Patients expect high-quality, uninterrupted care. Rushing to fill a vendor role can backfire. If the new supplier isn’t qualified or makes mistakes, an attempt at cost-saving can be quite expensive. Vetting helps avoid choosing a vendor not equipped for the job.
Hidden costs
Unvetted vendors may seem like a quick fix, but they often come with hidden costs. You may face unexpected fees, poor work quality requiring redoing, or even legal issues. A robust vetting program helps determine if a vendor will meet all contractual obligations before you engage their services.
While vetting requires an upfront investment of time and money, the long-term benefits to security, care quality, and your bottom line make it well worth the effort. Instituting a consistent and comprehensive vendor credentialing program is one of the best ways hospitals can mitigate risks introduced by suppliers and third-party access. With the right vetting, you can feel confident granting vendors access, knowing you’ve selected partners as committed as you are to patient well-being and data integrity.
Best Practices for Vendor Badging and Credentialing
To ensure safety and security, hospitals need to implement best practices for vendor credentialing and badging. As a hospital, you should:
Train all departments and locations to require representatives to sign in as part of the best practices checklist for facility access and badging. Ensure all staff understand the importance of properly badging vendors and following credentialing procedures.
Create a standardized process
Develop a standardized process for badging and credentialing vendors across all hospital locations. Require government-issued photo ID, proof of immunizations, background checks, and all necessary credentials for the services provided. Provide badges that state the vendor’s name, company, and access level.
Monitor vendor activity
Closely monitor vendor activity to ensure proper access control and compliance with hospital policies. Escort vendors to their designated work areas and ensure they stay within the authorized access areas. Conduct random audits to verify vendor credentials and check that badges are properly displayed.
Stay up-to-date with regulations
Familiarize yourself with The Joint Commission standards to create a vendor credentialing compliance policy. Stay up-to-date with any changes to regulations and adjust policies and procedures accordingly. Proper vendor credentialing is part of maintaining a safe environment and complying with hospital accreditation.
Revoke access immediately if needed
Have a system in place to immediately revoke vendor access if their services are no longer needed or if issues of non-compliance arise. Remove them from approved vendor lists and badge access to ensure they do not have further access to the facility.
By following these best practices, hospitals can reduce risks, limit unauthorized access, and maintain the highest standards of patient safety. Robust vendor credentialing and badging programs are essential for managing the many outside service providers that support hospital operations.
Implementing an Effective Vendor Credentialing Solution
Implementing an effective vendor credentialing system is crucial for any hospital. It gives staff peace of mind knowing that everyone accessing patient care areas has proper training and authorization. Digitized credentialing also streamlines the process and reduces costs compared to manual verification methods. A comprehensive approach simplifies things for vendors and boosts compliance.
Verify Vendor Qualifications
An ideal vendor credentialing solution confirms that representatives meet basic requirements like background checks, immunizations, and HIPAA training before issuing them ID badges. This ensures only qualified individuals gain access to sensitive hospital environments.
Track Compliance Centrally
With a robust credentialing system, hospitals can monitor vendor compliance from a single platform. Things like badge expirations, training renewals, and policy attestations are visible at a glance. Automated reminders prompt vendors to update credentials before they expire. Centralized management eliminates the need to check multiple systems and spreadsheets.
Improve Efficiency
Manual vendor credentialing requires staff to physically verify and copy documents like insurance certificates, licenses, and certifications. Digitized solutions let vendors upload these materials to a central database. Hospital administrators can then review and approve credentials electronically, saving time and resources.
Take a Holistic Approach
The most effective vendor credentialing programs oversee the entire lifecycle, from initial enrollment through termination. This includes onboarding, policy distribution, compliance tracking, auditing, and offboarding. A comprehensive system reduces confusion by giving vendors a single portal to manage all their hospital credentials. It also tightens security by promptly disabling badges and access when relationships end.
Implementing a robust vendor credentialing solution streamlines the process for hospitals and vendors alike. It strengthens compliance, improves efficiency, and gives staff confidence in the people accessing their facilities. For the well-being of patients and personnel, hospitals should make vendor credentialing a top priority.
Conclusion
Hospitals are obligated to patients and staff to control who has access to their facilities and systems. Vendor credentialing is an easy win that pays off through increased security, efficiency, and peace of mind. Healthcare is challenging enough without worrying about unauthorized individuals roaming the halls or accessing critical information systems. Do your hospital a favor and make vendor badging a priority – your patients and staff will thank you for it.
Why Hospitals and Healthcare Systems Should Buy Local
You know that feeling you get when you support local businesses in your community? There’s something gratifying about keeping money circulating close to home. Now imagine if that good feeling could spread throughout your entire healthcare system. Buying local and supporting small suppliers is not just some feel-good initiative – it makes practical business sense for healthcare organizations of any size. Here are four compelling reasons your healthcare system should make it a priority to buy locally and do business with small suppliers whenever possible. Doing so strengthens your local economy, reduces environmental impact, improves quality and service, and fosters innovation. While global supply chains have dominated for decades, a local-first approach offers significant benefits for both the healthcare system and the community it serves. The case for healthcare systems to buy local and support small suppliers is clear.
Supporting Local Economies With Local Purchasing
When your healthcare system buys from local small businesses, you’re directly supporting your community’s economy.
Local businesses spend more money in the local economy. According to studies, for every $100 spent at a local business, $68 stays in the community. At national chains, only $43 stays. That means more money circulating in your city or town, supporting other businesses and families.
It creates local jobs. Local businesses are more likely to hire people from within the community. This boosts employment and incomes for your neighbors and their families. Some estimates show that for every $10 million in revenue shifted to local businesses, 76 jobs are created.
It strengthens your tax base. Local businesses depend more on local infrastructure like roads, schools, and public services. So they contribute more in local taxes that directly fund these public goods and programs in your community.
It sustains cultural diversity. Unique, one-of-a-kind businesses are the heart of any town or city. They reflect the culture, values, and spirit of a place. Supporting local businesses helps sustain that diversity and community character.
Healthcare systems have significant purchasing power. By choosing to spend some of that power locally, you can positively impact people’s lives in meaningful ways. Patients, staff, and communities all benefit when you go local. It’s a win-win for everyone involved and the right choice for community well-being. So next time you need to buy supplies or services, think local first.
Accessing Unique and Innovative Solutions From Small Businesses
When it comes to innovation, small businesses have a leg up on big corporations. Their streamlined structure means they can go from concept to execution in a flash. By engaging with local small businesses, healthcare systems can tap into this agility and access unique solutions tailored to their needs.
Smaller companies are often more nimble simply due to less bureaucracy and red tape. They can pivot quickly based on customer feedback and make rapid prototyping and iterative changes to products and services. This fosters a ‘fail fast’ mentality where ideas are tested, tweaked, and improved at a fast pace. Healthcare systems that work with small businesses benefit directly from this ability to swiftly develop and refine new solutions.
Local small businesses also have an inherent advantage when it comes to understanding regional challenges and needs. They have a pulse on the local community and can develop solutions that directly address problems faced by both healthcare providers and patients in that area. This hyper-local knowledge and focus translates to solutions that have an immediate and meaningful impact.
By collaborating with small businesses, healthcare systems open themselves up to new ways of thinking that challenge the status quo. Entrepreneurial ventures approaching problems with a design thinking mindset can uncover innovative solutions hiding in plain sight. Tapping into these diverse perspectives exposes healthcare systems to ideas they may never have discovered on their own.
Partnering with small local companies is a win-win. Healthcare systems gain access to innovation, agility, and hyper-local knowledge while small businesses secure a key client and the opportunity to positively impact health outcomes in their community. It pays for healthcare organizations to buy locally. The rewards for both parties—and the people they serve—can be huge.
Building Strong Community Ties Through Local Engagement
Building strong ties with your local community has so many benefits for a healthcare system. Here are a few of the major reasons to make local engagement a priority:
Enhanced Civic Engagement
When you buy from and support other local businesses, you’re investing in the economic and social well-being of your community. Local business owners and their employees are also more likely to be socially and civically engaged in the community. They join local organizations, volunteer their time for good causes, and are more politically active in local government. Your healthcare system benefits from an engaged, invested local community.
Improved Community Health
Sourcing locally means providing better access to fresh, nutritious food for patients, staff, and community members. It also allows you to support local farmers and encourage more sustainable agricultural practices. Buying locally is better for the environment since it reduces the carbon footprint from transporting goods and food. When people feel invested in their community, they tend to make healthier lifestyle choices and be more active and engaged citizens. All of this contributes to a healthier community overall.
Enhanced Public Safety
Local businesses and their employees have a strong incentive to keep the community safe since they live and work there. They are more likely to notice and report any suspicious activity or safety issues to the relevant local organizations and authorities. Your healthcare system benefits from an engaged community looking out for public safety.
Information Gathering
Local governments and organizations have a much better sense of the critical needs in their community. Engaging with them helps your healthcare system gain valuable insights into challenges, priorities, and opportunities for collaboration. Building strong relationships based on mutual understanding and trust leads to better information sharing and more effective partnerships.
Focusing on local engagement helps build a healthcare system that is truly integrated into the fabric of the community. By supporting small and local businesses, you gain civic participation, health, safety, and information sharing—all of which positively impact your ability to serve. Local relationships are the foundation for developing sustainable and impactful decisions.
Increasing Supplier Diversity by Contracting Small and Local Vendors
Increasing supplier diversity by contracting small and local vendors is a win-win. As a healthcare system, putting effort into finding and supporting minority-owned, women-owned, and veteran-owned businesses in your area just makes sense.
Job creation and economic growth
Sourcing from small, local companies keeps money circulating in your community. These businesses are more likely to hire locally, increasing employment opportunities for your neighbors and patients. They also pay local taxes that fund important services.
Smaller companies are often more agile and willing to take risks. They may come up with creative solutions larger corporations overlook. Tapping into this entrepreneurial spirit can lead to new ideas that improve patient experiences.
Community goodwill
Supporting disadvantaged groups through supplier diversity initiatives demonstrates your organization’s social responsibility. It fosters goodwill and a positive brand image, which leads to greater community trust and loyalty. Patients want to receive care from institutions that share their values.
While change can be difficult, the benefits of increasing supplier diversity far outweigh any challenges. With a commitment to equity and inclusion, your healthcare system can build a procurement program that uplifts your local community. Minority-owned, women-owned, and veteran-owned businesses have so much to offer. Why not start new partnerships today?
Four Benefits of Healthcare Systems Buying Local and Engaging Small Suppliers
Healthcare systems have a responsibility to support economic growth in the communities they serve. Buying supplies and services from local small businesses is one of the most impactful ways to fulfill this responsibility. Here are four major benefits your healthcare system can gain by purchasing locally:
Cost Savings
Local suppliers often provide lower costs since they have lower overhead and transportation fees. They can also provide faster delivery times, reducing inventory costs. Buying directly from local businesses may also cut out the middleman, so you pay less.
Economic Growth
Healthcare organizations are major drivers of local economies. Spending your budget locally boosts small businesses and creates more jobs. It also increases the tax base, allowing your community to fund important services. Strong, diverse local economies lead to healthier, more prosperous communities.
Environmental Sustainability
Local purchasing reduces the environmental impact of transporting goods over long distances. It also supports more sustainable agricultural and manufacturing practices in your area. Buying locally sourced produce and products is better for the health of your patients, staff, and community.
Community Goodwill
Engaging with neighborhood businesses builds goodwill and fosters mutually beneficial relationships. Your healthcare system benefits from local partnerships and word-of-mouth marketing. In turn, you can promote community health initiatives together. Staff also appreciate when their workplace supports local farmers, craftspeople, and merchants.
Buying from small, locally-owned companies has significant benefits for healthcare systems and the communities they serve. While big multinationals also have a place, local suppliers should not be overlooked as valuable business partners. A healthy community ecosystem depends on the support of anchor institutions like hospitals and healthcare networks. Make an effort to source locally whenever feasible—your community will thank you!
Conclusion
Buying local keeps money in your community and boosts your local economy. Small suppliers often provide superior customer service since they rely on your continued business to survive. Local sourcing also reduces the environmental impact of transportation and boosts sustainability. Engaging small businesses enhances innovation as they work to meet your specific needs. While big vendors will still have a role, making room at the table for small, local suppliers creates an immediate impact on economies your healthcare system already supports and serves. Your community and patients will thank you for it.
What Is Procure to Pay (P2P)?
Have you ever wondered how businesses can streamline their payment processes? The solution is procure-to-pay or P2P. P2P is an automated system that handles everything from the initial purchase request to making a payment. For you, this means eliminating inefficient and time-consuming manual processes. No more chasing down invoices or cutting checks by hand.
With P2P software, you can automate purchasing, invoice processing, and payment approvals. Requisitions, POs, and invoices are all digitized and routed for approval electronically. Payments are issued automatically on their due dates. Not only does this save you time, but it also reduces errors and ensures you capture early payment discounts. If reducing costs and boosting productivity sounds good to you, it’s time to learn more about how P2P can benefit your business. In just a few clicks, you’ll be on your way to payment nirvana.
What Is Procure to Pay (P2P)?
Procure to pay, or P2P, is the end-to-end process of purchasing goods and services, from requesting and ordering them to processing invoices and payments. For any business, it’s a crucial cycle that if optimized, can significantly reduce costs and improve efficiency.
What exactly does P2P involve? First, requisitioning – when employees request materials or services they need to do their jobs. Next comes purchasing, where buyers research options, compare quotes, and place orders with suppliers.
Once the goods or services are received, the receiving process verifies that what was ordered matches what was delivered. Only then are invoices from suppliers processed and approved for payment.
By integrating systems for purchasing, accounts payable, and more, P2P streamlines this entire workflow. It eliminates time wasted on manual data entry, searching for information in different systems, and chasing down approvals.
With P2P automation, requestors have a simple online portal to order commonly used items. Buyers get alerts about requests that need their review and can approve with one click. Supplier invoices are matched to purchase orders and receipts automatically before being routed for payment approval.
Finance teams gain visibility into spend data to better forecast cash flow needs and negotiate volume discounts. And by paying suppliers on time, businesses can build goodwill and loyalty.
For growing companies, P2P solutions are a must. They accelerate purchasing cycles, reduce overhead costs, and allow staff to shift their focus from tedious tasks to strategic initiatives. If you’re still managing P2P with spreadsheets and paperwork, it may be time to explore how automation can transform this critical business process for your organization.
The Procurement Process Before P2P
Before procure-to-pay (P2P) solutions, the procurement process was inefficient and time-consuming. Departments would handle purchasing individually, requiring multiple approval levels for requisitions and purchase orders.
The Old Way
In the past, the steps to purchase goods involved a cumbersome paper trail. Purchasing agents had to create requisitions manually, get approvals, issue purchase orders, receive hard-copy invoices, and process payments. This decentralized system lacked spend visibility and control.
Requisitioning required filling out forms to request materials or services. These would go through an approval workflow involving multiple people.
Purchasing involved selecting suppliers, negotiating contracts, and actually buying the goods. More paperwork and approvals.
Receiving required ensuring the order was correct and of acceptable quality. If not, more paperwork to return or exchange items.
Invoicing involved receiving and verifying supplier invoices, then submitting them for payment. Yet more paperwork and approvals.
Payment could take weeks or months as physical invoices went through the accounting department. Suppliers would have to wait to get paid.
This time-consuming and tedious procurement process resulted in high costs, limited spend under management, and poor visibility into budgets and cash flow. There had to be a better way! And that better way was procure-to-pay.
How P2P Streamlines Procurement
Streamlining procurement tasks with a procure-to-pay (P2P) system can significantly improve operational efficiency in your business. P2P integrates all steps in the purchasing process, from requesting items to making payments, creating an automated procurement cycle.
Reduced Costs
Implementing P2P cuts costs in several ways. It minimizes paperwork by digitizing purchase requisitions, approvals, and invoices. This reduces the time spent processing each transaction. P2P also leverages your company’s bulk buying power through strategic sourcing to negotiate the best prices from vendors. With P2P monitoring spending in real-time, you can easily spot opportunities to save, whether by consolidating purchases or choosing more affordable alternatives.
Increased Visibility
P2P gives you visibility into your company’s spending at every stage. You’ll gain insight into not just what is being purchased but who is making the purchases and how much is being spent with each vendor. This data helps identify purchasing inefficiencies to optimize your procurement operations. It also ensures policy compliance as all purchases go through proper review and authorization.
Improved Supplier Relationships
Streamlining the P2P process benefits both buyers and suppliers. Suppliers receive quick, accurate payments, leading to better relationships built on trust and reliability. For buyers, this means securing the best prices and service. P2P also allows you to efficiently manage vendor contracts, catalogs, and performance evaluations in a centralized system.
In summary, implementing a P2P solution leads to a win-win outcome for your business and its suppliers. Cost savings, increased visibility, and improved supplier relationships all contribute to a streamlined, optimized procurement function.
Benefits of Implementing a P2P System
According to Gartner, a procure-to-pay system is “a fully integrated solution designed to support an end-to-end process that begins with goods and services requisitioning and ends with ready-to-pay files for upload into an accounts payable system.” Implementing a procure-to-pay (P2P) system in your organization can streamline the entire purchasing process, from requesting materials to paying suppliers. Here are some of the major benefits you’ll gain:
Cost Savings
A P2P system automates many manual tasks, reducing the amount of time your team spends on repetitive work like data entry, filing paperwork, and chasing down approvals. This improved efficiency can lower overhead costs and free up the budget for other priorities.
Enhanced Visibility
With a centralized P2P system, you’ll have real-time visibility into your organization’s spending. You can track expenses, monitor budgets, and look for ways to optimize purchasing. This level of insight helps ensure you have enough cash on hand to pay suppliers on time.
Improved Compliance
A sound P2P system incorporates approval workflows, authorization limits, and other controls that help your organization follow policy and regulatory compliance. It provides an audit trail for every transaction so you can easily pull reports to monitor compliance.
Streamlined Processes
By automating steps in the purchasing cycle such as requesting, approving, ordering and paying for goods and services, a P2P system accelerates the flow of information between departments. This can improve relationships with suppliers through on-time payments, consolidated invoicing, and efficient issue resolution.
Strategic Purchasing
With full visibility into your spending patterns, budgets, and contracts, you can make data-driven purchasing decisions that maximize value for your organization. You may find ways to consolidate suppliers, renegotiate contracts, or shift more spending to preferred vendors.
Implementing a P2P system is a strategic move that pays dividends through operational efficiencies, cost savings, and data-driven insights. While the initial set-up requires time and resources, the long-term benefits to your purchasing processes and bottom line are well worth the investment. Does your organization have plans to implement P2P automation? It could be a game-changer.
Automated purchase orders eliminate time-consuming manual entry and approvals. P2P solutions can automatically generate POs based on requisitions, saving your team hours of work.
Configurable options
Look for a solution that lets you customize workflows, reporting, and other features to match your unique needs. The system should adapt to your processes, not the other way around.
Built-in reporting
Robust reporting capabilities provide visibility into KPIs like spend under management, process cycle times, and compliance metrics. Reporting allows you to optimize your P2P processes and better manage costs.
E-procurement
An e-procurement module gives buyers a centralized place to shop for approved suppliers and items. Guided buying helps ensure they choose preferred products at the best-negotiated prices.
Invoice automation
Automated invoice processing including matching and routing for approvals cuts down on manual data entry and speeds up the payment process. Your solution should be able to receive invoices in multiple formats (email, EDI, web, paper) and automatically match them to the corresponding POs and receipts.
RFQ for tactical bidding
For high-volume or repetitive purchases, a request for quotation (RFQ) tool allows you to solicit competitive bids from multiple suppliers. Award the order to the supplier offering the best combination of price, quality, and delivery.
A robust P2P solution incorporates all these key features and more to streamline your purchasing operations from requisition to payment. By automating repetitive tasks, enforcing policies, and providing visibility into metrics, P2P software helps procurement become a strategic driver of cost savings and compliance.
Conclusion
By streamlining everything from purchasing all the way through paying suppliers, P2P enables your business to save time, cut costs, gain visibility, minimize errors, and strengthen relationships. If you want to free up resources, reduce waste, and improve the bottom line, it’s time to reach out to one of our experts and ask about implementing a procure-to-pay solution. The rewards of optimizing your payments and maximizing working capital far outweigh any costs. Join the wave of modern businesses benefiting from automated P2P and start reaping the rewards today. The future of efficient, cost-effective payments is here.
Tips for Writing a Small Business Grant That Gets Chosen
You have a vision for your small business growth but you need funding to make it happen. Winning a grant could help your dreams become a reality, but can you craft an award-winning pitch?
Writing a winning grant proposal is challenging, but with some tips and tricks, you can create an application that gets chosen. The key is showing how your idea will benefit your community, communicating clearly, and following the rules to a T. If you want to beat the competition and win a grant for your small business, read on. We’ll walk through how to craft a pitch that sparks interest and makes your vision impossible to ignore. By the end, you’ll be ready to start drafting a proposal destined for success.
Understanding the Elements of a Winning Small Business Grant Proposal
To craft a winning small business grant proposal, you must understand what elements will help your submission stand out.
First, choose a compelling project title and summary that grabs the reviewer’s attention. Keep these to 1-2 sentences that convey your main objective and expected impact.
Next, establish credibility. Share details about your company’s background and mission. Discuss your experience, qualifications, and other funding sources. Explain your annual budget to demonstrate financial responsibility.
Then, make a strong case for why the funding is necessary. Discuss the specific needs and issues your project aims to address. Explain who will benefit and how. Provide statistics and examples to strengthen your needs statement.
The project narrative is the heart of your proposal. Lay out your plan of action in 2-3 paragraphs. Discuss goals, objectives, timelines, budgets, and primary activities or milestones. Explain your approach and methodology for achieving outcomes. Share details that prove your project is well-developed and ready to execute.
Discuss the personnel involved and their relevant experience. Explain how you will evaluate progress and measure success. Share any data, metrics, or anecdotes that support the potential impact.
By following these steps, you’ll be on your way to crafting a compelling proposal. Do your research, know your audience, and take the time to create a well-organized submission that brings your project vision to life. With a winning pitch that speaks to the reviewer’s interests and priorities, you’ll have the funding to turn your small business dreams into reality.
Researching the Grant Requirements Thoroughly
When applying for a small business grant, doing your homework is crucial. Before you start writing, understand what grantmakers are specifically looking for in proposals.
Review the Grant Guidelines Thoroughly
Read through all the details on the grantmaker’s website to determine if your business and project idea is not only eligible but also a good fit for the requirements. Pay attention to eligibility criteria like business location, years in operation, and industry. Make sure you meet all the qualifications before moving forward.
Seeing what kinds of proposals and projects they’ve funded in the past can give you insight into what they’re looking to support. You may find new ideas or discover new possibilities for your business.
Check if they require a letter of intent or concept paper before submitting a full proposal. If so, review the requirements for that as well. Following all instructions demonstrates your ability to carry out the work.
Outline the Proposal Requirements
Once you’ve determined your project matches the grant, review the proposal guidelines line by line. Outline each required section and the information needed. Common sections include:
A statement of the business problem or opportunity to be addressed. Discuss the issues and current realities.
A project description explaining your solution or approach. Describe activities, objectives, and timelines. Discuss potential impact and benefits.
A budget outlining how funds will be used. Provide a budget narrative justifying costs.
Qualifications and experience. Show why your team has the skills and expertise to carry out the work.
The above steps will help you create a compelling proposal that addresses all the grantmaker’s requirements.
Crafting a Compelling Need Statement
To convince the grant review committee that your business deserves funding, you’ll have to make a compelling case for why their support is so critical. This is called the need statement. In the need statement, clearly define the problem your business aims to solve, supported by valid data and evidence.
Keep your need statement concise but impactful. Focus on the key issues, and use statistics and stories to bring them to life. For example:
“Small businesses are 99.7% of U.S. businesses but only receive 5% of federal contracting dollars, according to the U.S. Small Business Administration.”
“Like many main street small businesses, The Shop Around the Corner has struggled post-COVID-19. Revenue was down 52% in 2020 compared to 2019. Without additional funding to update our e-commerce platform and pivot to hybrid in-person/online sales, we risk permanently closing our doors after 25 years of serving the community.”
A compelling need statement should be coherent and supported, not just a list of problems. Explain how those issues specifically impact your business and community. Use a case study or client story to strengthen statistics and help reviewers understand why your work is critical.
For example:
According to the Bureau of Labor Statistics, “Youth unemployment in our city has spiked to over 25% this past year.” For at-risk teens like Jamie, our after-school culinary and hospitality training program provides a path to a promising career. With additional funding, we aim to double the number of students in our program and help more youth overcome barriers to employment.”
A clear, evidence-based need statement sets the foundation for your grant proposal. Done well, it highlights the urgency around the issues you aim to address and shows the meaningful impact of your work. Keep your readers engaged by combining compelling data with human stories, and you’ll have crafted a need statement that inspires action.
Building Your Capabilities and Credentials
To increase your chances of securing a small business grant, show funders you have the capabilities and credentials to turn your idea into reality.
Build Your Experience and Skills
Do some skill-building to strengthen your business acumen and industry knowledge. Take free or low-cost financial management, strategic planning, and marketing courses. Build a professional network by joining relevant industry associations and networking groups. Get hands-on experience through internships, part-time work, or volunteering in a similar business.
Earn Relevant Credentials and Certifications
Look for credentials that certify your expertise for the specific grant program. Many are offered online at little or no cost. For example, if you’re applying for a tech grant, consider certifications in web design, SEO, or social media marketing. For a healthcare-specific grant, get certified in health IT, healthcare compliance, or patient advocacy.
Credentials and certifications serve as “proof points” for funders that you have the necessary skills and knowledge to execute your business plan successfully. They also allow you to build specialized expertise that will set you apart from other applicants.
Emphasize Soft Skills
Soft skills like communication, critical thinking, and problem-solving are important. Don’t leave these out of your application. These skills are crucial for running a small business, so call them out in your grant application. For example, mention that you have strong organizational abilities that aid in running your business, or that you’re adept at building professional relationships that lead to new opportunities.
Soft skills are often hard to teach, so having them already positions you for success. Provide examples of how you’ve applied your soft skills in work or life experiences. Your capability and determination—combined with relevant credentials and experience in your industry—will show funders you have the right mix of skills and passion to achieve your vision.
Perfecting Your Pitch: Writing Style Tips for Grant Proposals
When crafting your grant proposal, your writing style and pitch can make or break your chance for funding. Here are some tips to help you perfect your pitch:
Be Positive and Persuasive
Frame your proposal in an optimistic, encouraging way. Use language like “will” and “can” rather than “may” or “might.” Discuss the benefits and impact of funding, not just the details of how funds will be used. Help the funders visualize the positive change that will result from their support.
Be Honest Yet Strategic
Provide transparent information about challenges or obstacles, but do so optimistically and constructively. Discuss how you aim to address roadblocks and turn them into opportunities. Be realistic in your goals and specific in your plans. Vague or unrealistic proposals will be less convincing.
Focus and Flow
Use clear, straightforward language and formatting to keep the reader engaged. Short sentences and small paragraphs make information easy to absorb. Headings, bullet points, and bold text also help guide the reader through key points. Repeat important terms and tie sections back to your central theme or purpose to create flow in the narrative.
Show Your Passion
Help the funders understand why this project or initiative is meaningful to you and your community. Discuss the motivation behind your work and your commitment to success and sustainability. Share relevant experiences that demonstrate your capability, skills, and determination. Your enthusiasm and dedication will come through to the reader.
Review and Revise
Have others review and provide feedback on your draft. Look for any areas that could be clearer or stronger and make revisions. Double-check for proper grammar, spelling, and punctuation. Read through the final draft aloud to identify any awkward phrasing. With feedback and review, you can craft a pitch-perfect for persuading funders to choose your grant proposal.
Conclusion
So there you have it, the keys to crafting a winning small business grant pitch. Remember, do your research, tell your story, show the impact, build excitement, and ask confidently. If you follow these tips, you’ll be well on your way to securing funding for your business. Now get out there, dream big, and make that pitch!
Multi-sourcing in Healthcare Procurement
As the head of procurement at your hospital, your job is demanding enough even when things are running smoothly. Lately, you can’t seem to catch a break. Suppliers aren’t delivering critical items on time. Prices for basic supplies have skyrocketed, and you’re constantly putting out fires. There has to be a better way.
What if you could transform your procurement process to minimize headaches and maximize value? By adopting a multi-sourcing strategy, you’ll gain more control, flexibility, and cost savings. This approach revolutionizes traditional healthcare purchasing models by diversifying your supply base and keeping suppliers on their toes. Get ready to improve quality, access innovations, and avoid supply chain disruption. Multi-sourcing is the remedy for what’s ailing your procurement operations. Discover how this game-changing strategy can ease your stress and make you a supply chain hero.
The Benefits of Multi-sourcing in Healthcare Procurement
To keep your hospital running, flexibility and risk mitigation are key. That’s why more and more healthcare organizations are turning to multi-sourcing for procurement.
Increased competition. Tap into a larger range of suppliers to get the best value. With multiple vendors competing for your business, you have more leverage to get lower prices and higher quality.
Reduced dependency and risk. Don’t put all your eggs in one basket. By diversifying your supply chain across several suppliers, you avoid being locked in or disrupted if one vendor faces issues.
Enhanced innovation. Different suppliers bring different strengths, solutions, and ideas. Multi-sourcing gives you exposure to more innovations that you can benefit from.
Greater flexibility. It’s easier to change things up when you’re not reliant on a single source. You have more freedom to swap out vendors or rebalance as needed to meet changing needs.
Focused resources. Outsourcing some procurement functions allows your organization to concentrate on its key priorities. Let vendors handle what they do best so you can focus on patient care and outcomes.
With huge cost savings, flexibility, and risk reduction, multi-sourcing makes sense for healthcare. By partnering with multiple pre-vetted vendors, hospitals gain security, choice, and value. Free up your resources, gain expertise, and take your procurement to the next level with the power of multi-sourcing. It may just be the prescription for greater efficiency and effectiveness that the doctor ordered!
If you’re looking for some more general information about multi-sourcing, check out this article.
How Hospitals Can Implement a Multi-sourcing Strategy
To implement a multi-sourcing strategy, hospitals need to make some important changes.
First, rethink your procurement process. Rather than relying on a single vendor for all your needs, look at breaking up contracts into specialized modules. For example, instead of getting your entire EMR system from one place, choose separate suppliers for modules like e-prescribing, telehealth, and medical imaging that meet your specific requirements.
This approach gives you more flexibility and control. You can match each module to your needs and upgrade or replace them independently. It also spurs more competition among vendors. They have to work harder to win your business for each module.
Next, take advantage of cloud-based information sharing. The cloud makes it much easier for different EMR modules and suppliers to connect and work together, and patients reap the benefits. Patient information follows them seamlessly between providers and services, alleviating redundant input and saving patients time. Utilizing cloud-based platforms that share information also creates cost savings. You don’t have to invest in expensive on-site hardware and software, time-intensive IT projects, or the staff to maintain on-site databases and servers.
Finally, reorganize internally around patient demand. Break down divisions between departments and specialties. Use multisourcing and the cloud to quickly share information and respond to patients’ needs, no matter where they are in the system.
Following these steps will revolutionize how you procure healthcare technology and services. A multisourcing strategy, enabled by the cloud, can help lower costs, improve the patient experience, and make your hospital more agile and responsive.
Key Considerations for Healthcare Multi-sourcing
Physician Preferences
When multi-sourcing medical supplies, hospitals must consider physician preferences. Doctors often develop preferences for certain brands or types of supplies based on their experiences. Not accounting for these preferences could lead to pushback, complications, or compatibility issues. Talk to physicians to determine what they prefer for key supplies, especially for high-risk procedures. You may need to negotiate with suppliers to provide those preferred brands at a reasonable cost.
Rapid Innovation
The healthcare industry is rapidly innovating. Multi-sourcing strategies must evolve quickly to keep up with changes in medical technology, treatments, and best practices. What works this year may be outdated next year. Stay on top of trends in healthcare to adjust sourcing accordingly. Work closely with suppliers that demonstrate a commitment to continued innovation. Consider shorter-term contracts and relationships with multiple suppliers in fast-changing areas of medicine.
Dependable Supply
Above all else, a hospital’s supply chain must be dependable. Multi-sourcing introduces more complexity, and thus more potential points of failure. Choose suppliers carefully based on their proven ability to provide consistent, high-quality products and services. Build contingency plans for possible supply chain disruptions into your multi-sourcing strategy. Consider keeping secondary suppliers on standby, and maintaining small buffer stocks for critical supplies.
Additional Considerations
Other factors to weigh when multi-sourcing for hospitals include:
Cost and value: Achieve the best overall value through strategic negotiations and contracts with multiple suppliers.
Standardization: Balance cost savings from standardization with physician preferences and rapid innovation.
Logistics: Carefully manage the logistics of working with multiple suppliers to avoid issues like miscommunication or delayed/incorrect deliveries.
Compliance: Ensure all suppliers and products meet strict healthcare regulations and compliance standards to avoid penalties or liability issues.
By carefully evaluating these key considerations, hospitals can implement an effective multi-sourcing strategy that reduces costs while maintaining high standards of care. Close collaboration with physicians and suppliers is key to success. With the right partners and contingency plans in place, multisourcing can revolutionize healthcare procurement.
Case Study: How a Major US Hospital Network Achieved Millions in Savings
A major US hospital network provides an excellent case study of how multi-sourcing can revolutionize healthcare procurement and generate significant cost savings. By implementing several cost-reduction strategies, this network achieved millions in savings.
Evidence-based strategies
The network focused on evidence-based fall prevention programs, reducing falls in hospitals that often lead to high costs. Implementing proven fall prevention methods and technology allowed the network to cut costs associated with inpatient falls.
Modernizing infrastructure
The network also updated its data centers using Cisco technologies, achieving improved efficiency, security, and cost savings. By upgrading to state-of-the-art data centers, the network reduced IT costs through consolidation and avoided expensive downtime.
Renegotiating vendor contracts
The network renegotiated contracts with key vendors to get better rates and terms. Using its size and buying power, the network was able to get substantial discounts from vendors seeking its large-volume business. New pricing and payment terms with vendors accounted for much of the total savings.
Optimizing staffing
The network optimized staffing levels and schedules based on patient volume and acuity. By aligning staffing to demand, the network reduced excess staffing costs during low-volume periods. The network also found opportunities to reorganize certain roles and responsibilities to improve productivity.
By taking a multi-pronged approach to cost reduction through evidence-based strategies, technology upgrades, improved vendor management, and staffing optimization, the hospital network generated over $50 million in annual savings. The success of this network shows how multi-sourcing can help healthcare organizations cut costs in innovative ways while still delivering high-quality care. The key is tapping into the power of diverse resources and solutions to fundamentally transform spending.
FAQ: Common Questions About Multi-sourcing in Hospitals
What exactly is multi-sourcing in healthcare procurement?
Multi-sourcing refers to a procurement strategy where a hospital sources goods and services from multiple external suppliers, rather than relying on a single provider. This approach allows hospitals to get the best value for money by choosing the most suitable and cost-effective suppliers for different product categories.
How does multi-sourcing benefit hospitals?
Cost savings. By negotiating with different suppliers, hospitals can often get lower prices. They can play suppliers off against each other to get the best deal.
Improved quality. Hospitals can choose suppliers that specialize in particular products or services. This can lead to higher-quality goods and services.
Reduced risk. Relying on a single supplier poses risks like price hikes, supply shortages, or service disruptions. Multisourcing mitigates these risks by diversifying the supply base.
How do hospitals implement a multi-sourcing strategy?
Determine which product and service categories would benefit most from multi-sourcing. Things like medical supplies, IT equipment, and facilities management are good options.
Research and evaluate potential suppliers in each category. Consider their experience, quality standards, customer service, and pricing.
Negotiate contracts with the selected suppliers, often through group purchasing organizations that hospitals belong to.
Manage multiple supplier relationships to ensure coordinated purchasing and the best outcomes. This may require a dedicated multisourcing manager.
What challenges does multi-sourcing present?
Increased complexity. Managing multiple suppliers and contracts requires significant resources and expertise.
Difficulty integrating systems. Integrating the different IT systems and processes used by various suppliers can be challenging.
Supplier conflict. There is a risk of conflict or lack of cooperation between suppliers. Clear communication and management are required.
Using a multi-sourcing approach for procurement allows hospitals to optimize value and outcomes. While it does present some challenges, when implemented strategically, multi-sourcing can revolutionize the way hospitals purchase goods and services.
Conclusion
Multi-sourcing in healthcare procurement is making it possible for hospitals to provide better care at lower costs. By tapping into multiple suppliers for the same categories of goods and services instead of relying on a single source, healthcare organizations gain more negotiating power, access to innovation, and supply chain resilience. The synergies and cost savings gained from diversifying suppliers and increasing competition are game-changing. While transitioning to a multisourcing model requires upfront investment and effort, the long-term benefits to your hospital’s bottom line and ability to serve patients are well worth it. If you’re not already exploring how to implement multisourcing in your procurement strategy, now is the time to start. The healthcare industry is transforming, and multisourcing could be your competitive advantage.
Understanding Supplier Diversity Certifications for Hospitals and Healthcare Systems
If you’re a hospital or healthcare system looking to diversify your suppliers, it’s important to understand what supplier diversity certifications are and how potential suppliers obtain them. Supplier diversity certifications are a way for your organization to identify diverse companies and organizations you want to include in your supplier base, as well as a way to guarantee that the diversity information you have for your suppliers is up-to-date and accurate.
Diverse Supplier Classifications
So, what is a diverse supplier? A diverse supplier is a business that is owned and operated by an individual or group of people from a traditionally underrepresented or underserved group.
In the US, there are eighteen categories used to identify diverse businesses:
Disabled Owned – A business that is a least 51% owned by one or more disabled persons who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means being actively involved in the day-to-day management of the business.
Disabled Veteran Business Enterprise (DVBE) – This term is used by the State of California, public utilities, and many private corporations to designate a company that is owned (at least 51%) and controlled by a Veteran with a Service-Connected Disability rating of at least 10% from the Department of Veterans Affairs. Additionally, the Veteran must reside in the state of California.
Disadvantaged Business Enterprise (DBE) – A business that is usually certified by a federal, state, or local government agency as having met all of the government standards that award eligibility, but may include women, minorities, disabled, and other disadvantaged as a result of economic disadvantages with respect to education, employment, residence or business location or social disadvantage and lack of business training.
Disadvantaged Veteran Enterprise (DVE) – A business that is a small business concern owned and controlled by veterans, where not less than 51% is owned, controlled, and managed by veterans.
Historically Black Colleges / Universities & Minority Institutions (HBCU/MI) – Historically Black and minority colleges and universities that the government recognizes as legitimate set-aside business opportunities.
HUBZone Certified – A business that is operating in a certified historically underutilized business zone. There are 7,000 qualified census tracts (HUD) and 900 qualified non-metropolitan counties.
LGTB Owned (LGBT) – A business that is at least 51% owned and operated by an LGTB person(s).
Minority-Owned – A business that is at least 51% owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are African Americans (Black), Hispanic Americans, Native Americans, Asian-Pacific Americans, Alaskan Native Americans, and Indian Sub-Continent Americans.
Minority Business Enterprise (MBE) – A Minority Business Enterprise usually certified by a federal, state or local governmental agency as having met all of the government standards that award eligibility.
Service-Disabled Veteran (SDV) – A business that is owned by one or more veterans with a disability that is service-connected. The term “service-connected” means, with respect to disability, that such disability was incurred or aggravated, in the line of duty in the active military, naval or air service. (38 U.S.C. ‘101(16).
Small Business – A business considered eligible for assistance from SBA as a small business is one that is organized for profit, with a place of business located in the United States. It must operate primarily within the United States or make a significant contribution to the U.S. economy through the payment of taxes or the use of American products, materials, or labor. Together with its affiliates, it must meet the numerical size standards as defined in the Small Business Size Regulations, 13 CFR 121
Small Disadvantaged Business (SDB) – Small Disadvantaged Business: New certification eligibility criteria established by the SBA effective 7/1/99. All firms must be certified by one of the SDB Certification Agencies designated by the SBA. To qualify must be a small business, not exceed standards for Primary SIC, meet Contracting Officers’ assigned SIC code, be a U.S. Citizen, and be 51% owned and controlled by one or more Socially & Economically Disadvantaged Individuals. The SBA classification is based on a Preponderance of the Evidence Clause”. This SDB Certification is good for 3 years.
Veteran Business Enterprise (VBE) – Under SBA Guidelines Small Business Act (PL 85-536) as amended states: Small Business Concerns owned and controlled by veterans not less than 51% owned by one or more veterans and in the case of a publicly owned business not less than 51% of the stock is owned by one or more veterans.
Veteran Owned – A business that is a least 51% owned by one or more veterans, who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business. The term “veteran” (38 U.S.C.’101(2)) means a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable.
Vietnam Veteran – A business that is a least 51% owned by one or more Vietnam Veterans who served between 1/1/59 and 5/7/75 and have control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business.
Women-Owned – A business that is at least 51% owned by, and whose management and daily business operations are controlled by one or more women who are U.S. citizens.
Woman Business Enterprise (WBE) – A Woman Business Enterprise is usually certified by a federal, state, or local government agency as having met all of the government standards that award eligibility.
8(A) Designation – The 8A designation is given to small companies owned by socially and economically disadvantaged persons, so that they may bid and obtain federal government contracts and other assistance to develop their business. The business owner must be eligible under the same rules and guidelines set down by the federal government.
Internationally, there are five classifications, but these will vary by country:
Disabled Owned – A business that is a least 51% owned by one or more disabled persons who control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business.
LGTB-Owned – A business that is at least 51% owned and operated by one or more LGTB person(s)
Minority-Owned – A business that is at least 51% owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group. Minority (ethnicity) is defined by country as the socio-economic under-represented. Intel does not require disclosure of ethnicity per the privacy policy. Disclosure of ethnicity is voluntary, not a requirement.
Veteran Owned – A business that is a least 51% owned by one or more veterans, who control and operate the business. Country exceptions: Israel, Taiwan
Women-Owned – A business that is at least 51% owned and operated by one or more women.
What Certifications Should My Supplier Diversity Program Accept?
Most supplier diversity programs accept certifications from third-party certifying agencies. There are several types of certifications available, including federal, state-level, local, and non-governmental organization (NGO) certifications. The certification process typically requires suppliers to submit documentation, go through screenings and interviews, and may also include an on-site visit.
Ultimately the certifications your organization accepts will reflect the types of businesses you want to engage and do more business with.
Below is a list of certifying organizations that certify businesses on a national level:
It’s important to note that a single business can hold multiple certifications. If a business is owned by a lesbian Native American woman, that business would be eligible for four separate certifications—one from National Minority Supplier Development Council (NMSDC), one from Women’s Business Enterprise National Council (WBENC), one from Native American Chamber of Commerce (NACC), and one from SupplierGATEWAY.
SupplierGATEWAY’s Enhanced Digital Certification® is done entirely online and does not require a site visit. The approval process is expedited, with applications generally approved within 24 hours. This all-in-one certification certifies many different classifications with one certificate. Your organization can even sponsor Enhanced Digital Certification for your current suppliers. At $25 per year, it’s an affordable way to grow your organization’s diverse supplier roster and ensure that supplier diversity information remains accurate and up-to-date.
The Importance of Understanding Supplier Diversity Certifications for Hospitals and Healthcare Systems
Understanding supplier diversity certifications is an important step for hospitals and healthcare systems looking to diversify their suppliers. Understanding the certification process and choosing which certifications your program accepts will ensure that your program is engaging with suppliers that fulfill program requirements. Additionally, understanding certifications can help effect change within your organization’s current culture of supply chain management and help your organization’s supplier diversity program meet its goals.
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You know the old saying “Garbage in, garbage out.” This applies to your healthcare supply chain management as much as anywhere else. If you don’t have accurate, high-quality data about your suppliers and the products they provide, you’re going to end up with inefficient processes, higher costs, and frustrated clinicians and staff.
The key to streamlining your supply chain, reducing excess inventory, and ensuring you have the right products available when and where they’re needed is simple: invest in collecting and maintaining the best supplier data possible. We’re talking about details like accurate contact info, real-time updates on backorders or discontinuations, lead times, pricing, and compliance documentation.
With top-notch data powering your supply chain management systems and processes, you’ll gain visibility and control. You’ll be able to identify cost-saving opportunities, spot potential issues before they arise, and make better decisions about which products and suppliers to rely on. Best of all, you’ll improve patient care by enabling clinicians and staff to do their jobs without hassle or delay. Read on to discover the key strategies and best practices for achieving high-quality supplier data in your healthcare organization. The rewards will be well worth the effort.
Why Supplier Data Matters in Healthcare
Accurate and up-to-date supplier data is key to improving supply chain management in healthcare. Without it, hospitals and medical centers are operating blind. You need to know the nitty-gritty details about your suppliers to make the best choices for your organization.
Supplier data gives you visibility into your supply chain so you know what’s coming and going in real time. This means you can spot potential issues early and make adjustments to avoid disruptions in patient care. You’ll have information on supplier performance, quality, and sustainability readily available to determine the optimal partners for your needs.
Supplier data also facilitates open communication and data sharing with your suppliers, building stronger relationships and allowing you to work together more efficiently. When you have a complete, high-quality profile for each supplier, you can evaluate them objectively based on factors like:
Product quality and safety – Ensuring medical supplies and equipment meet strict standards.
Punctuality and reliability – Delivering critical items on time is a must.
Pricing and value – Getting the best deal for high-demand, high-cost supplies.
Innovation – Finding suppliers pushing the envelope with new solutions and tech.
Sustainability and social responsibility – Choosing eco-friendly and ethical suppliers when possible.
At the end of the day, high-quality supplier data translates into higher-quality patient care. While compiling and managing this data requires significant effort and resources, the benefits to your healthcare organization and the communities you serve make it well worth the investment.
Challenges With Supplier Data Management
As a supply chain manager in healthcare, you know the challenges of managing high-quality supplier data all too well. There are a few major issues that often get in the way:
Lack of internal organization or a centralized data management system. When supplier data lives in silos across your organization, it’s nearly impossible to get a full, accurate picture or leverage it effectively. You need a system that brings all supplier information together in one place.
Lack of expense visibility and inefficient audit controls. Without comprehensive, up-to-date supplier data, you can’t properly analyze expenses or ensure you’re paying the right prices. Audits also become tedious and time-consuming. Consolidating information makes these processes far more efficient.
Difficulty integrating new supplier data. Onboarding new suppliers is hard enough without having to chase down information from various departments and enter it into multiple systems. Robust supplier data management software centralizes information from the start, making the integration of new partners a breeze.
To effectively manage your healthcare suppliers, high-quality data is essential. What exactly constitutes “high-quality” supplier data? There are several key attributes to consider:
Accuracy
Accurate supplier data means the information is correct and factual. Things like supplier names, addresses, and contact details should be double-checked to ensure they are right. Inaccurate data leads to errors, compliance issues, and impaired supplier management.
Completeness
Complete supplier data means no missing information. All relevant details about each supplier should be included, such as tax IDs, licenses, certifications, and more. Lacking important supplier information prevents full visibility into your supply chain.
Reliability
Reliable supplier data comes from credible sources and is backed by evidence. The information should be verifiable and trustworthy. Unreliable data from questionable sources leads to poor decision-making and increased risks.
Timeliness
Up-to-date supplier data means the information is current. Outdated supplier data results in lost opportunities, compliance failures, and wasted time. Best practices are to review and refresh supplier data regularly, at least annually.
Consistency
Consistent supplier data means the information is formatted and categorized uniformly. When data is inconsistent, it becomes difficult to analyze, report on, and manage suppliers effectively. Standardizing how supplier data is entered and maintained is key.
High-quality supplier data is accurate, complete, reliable, timely, and consistent. By prioritizing and achieving these attributes, you’ll be on your way to improved healthcare supply chain management and oversight. The time and effort invested in building a high-quality supplier database will pay off through greater efficiency, risk reduction, and cost savings.
Best Practices for Collecting and Maintaining Supplier Data
To collect high-quality supplier data for your healthcare organization, follow these best practices:
Align internal stakeholders
Get leadership, procurement, IT, and other relevant teams on the same page about why improved supplier data is important and what specific objectives you want to achieve. Set key performance indicators (KPIs) to measure the success of your data collection efforts.
Centralize supplier information
Use a supplier master data management system to store all supplier information in one place. This helps avoid duplicate, outdated, or contradictory data living in different departments. Give relevant teams access to the centralized database to update and maintain supplier records.
Streamline data collection
Create a standard questionnaire for new and existing suppliers to fill out with consistent fields of information. Make the process as simple as possible by allowing suppliers to enter data into an online form. You may need to follow up with phone calls to suppliers for clarification or to capture additional details.
Apply data quality checks
Validate and verify supplier information to ensure it is correct, complete, and consistent. Double-check facts provided by suppliers and look for any missing or illogical data. It may help to do site visits to suppliers when possible. Use data quality software tools that can detect anomalies in records.
Keep information up to date
Review and refresh supplier data on an ongoing basis. Stay in regular contact with key suppliers to gather the latest information about their company, products, services, and compliance or performance metrics. Make updating supplier records an integral part of the procurement process.
Following these best practices for high-quality supplier data collection and management will enable your healthcare organization to build a comprehensive and accurate supplier master database. This foundation will support an optimized supply chain that reduces costs, improves patient care, and ensures regulatory compliance.
Leveraging Supplier Data to Drive Cost Savings and Efficiencies
Analyze Your Supplier Data
You’ve collected information from your suppliers, now it’s time to unlock the insights hidden within. Analyzing your supplier data can uncover:
Cost savings opportunities. Look for suppliers charging higher prices for similar goods or services. You may be able to negotiate lower rates or switch to alternative suppliers.
Areas of risk. Suppliers with quality, delivery, or financial issues can put your supply chain at risk. Identifying these suppliers allows you to take corrective action.
Trends in spending. Understanding how much you spend with each supplier and on each category of goods and services helps optimize your budget and identify waste.
Standardize and Centralize
To get the most from your supplier data, it needs to be:
Standardized. Require all suppliers to provide information in the same format to allow for easy analysis and comparison. Things like using a standard set of product categories and a consistent unit of measure for pricing.
Centralized. Keep all supplier data in one place, like a procurement management software system. This makes the data accessible across your organization and simplifies reporting and analysis.
Modern technologies can help transform your supplier data into a strategic asset:
Analytics tools detect patterns and insights in large, complex data sets. They can identify cost-saving opportunities and supply chain risks that would otherwise go unnoticed.
Artificial intelligence uses machine learning algorithms to analyze supplier data, uncovering hidden insights and providing recommendations on ways to optimize.
Data visualization software transforms raw data into easy-to-understand charts, graphs, and dashboards. Visualizing your supplier data makes the insights more accessible and impactful.
Leveraging high-quality supplier data and technology provides an opportunity for significant cost savings and supply chain efficiencies. By unlocking data-driven insights, you can make more informed supplier selections, streamline purchasing processes, and optimize budget utilization. The key is collecting comprehensive data, keeping it standardized and centralized, and using the latest analytics tools to transform it into actionable business intelligence.
Conclusion
So there you have it, the not-so-secret key to improving your healthcare supply chain management. Focus on your supplier data. Make it a priority to collect accurate, consistent, and up-to-date information from your suppliers and actually use that data to gain visibility into your supply chain. Only then can you start optimizing processes, reducing excess inventory, and ultimately improving patient care. It may require initial investments of time and resources, but the long-term benefits to your organization and community will make it well worth the effort. Stop wasting time and money on outdated methods and incomplete data. Take control of your supply chain today by making high-quality supplier data the foundation for success. Your patients and bottom line will thank you.
You know that nagging feeling that the healthcare industry is changing fast, but procurement strategies aren’t keeping up? As a healthcare leader, you’ve seen firsthand how the pace of innovation in medical technologies, treatments, and care delivery models threatens to outstrip traditional purchasing processes.
Rigid multi-year contracts and slow evaluation cycles simply can’t accommodate the rapid transformations in healthcare. The solution is agile buying – flexible, iterative procurement methods tailored for an industry where change is the only constant.
Agile buying means collaborating with suppliers as partners, not just vendors. It means shorter contracts, faster pilots of new solutions, and a willingness to fail fast and move on. For healthcare organizations striving to improve outcomes, reduce costs, and keep up with the latest medical advancements, agile buying strategies are no longer a “nice to have” but an absolute must-have.
The future of healthcare depends on procurement catching up with the pace of change. Are you ready to make your purchasing agile?
What Is Agile Procurement and Why It Matters for Healthcare
Agile procurement is a new, faster, and more flexible way of buying goods and services. For healthcare organizations, it’s an absolute game changer.
Some key points about agile procurement that you should know:
Agile procurement speeds up selection processes. The days of multi-year RFPs and vendor evaluations are over. Agile methods get new technology and resources in the door fast, so you can start improving patient care immediately.
Agile procurement leads to a transparent organizational structure. Cross-functional teams are more valued than hierarchy and experience. Staff are empowered to make decisions and try new things. Fresh perspectives drive innovation.
Agile procurement enhances a dynamic environment. Healthcare changes constantly, and agile procurement adapts quickly to new technologies, treatments, and patient needs. Lengthy buying cycles simply don’t keep pace any longer.
Agile procurement boosts patient-care efforts. When you implement new solutions faster, you get better outcomes. Agile procurement supports coordinated care, reduces errors, and improves quality of life. Patients deserve nothing less.
The future of healthcare depends on agility. Agile procurement principles emphasize speed and flexibility, which benefit healthcare organizations and the people they serve. It’s time to rethink old buying methods and embrace a new approach that meets the demands of a rapidly evolving industry.
The Benefits of Agile Procurement for Hospitals and Health Systems
Agile procurement allows hospitals and health systems to speed up their buying processes. This means being able to provide the latest treatments, technologies, and facilities to patients faster.
Agile procurement reduces red tape and documentation that bogs down traditional buying methods. Rather than a lengthy requirements-gathering phase followed by an RFP process that can take months, cross-functional teams evaluate options and make selections in weeks.
This faster speed means hospitals can complete critical projects sooner. A new surgical wing updated diagnostic equipment, or an electronic health record system can be operational in a fraction of the usual time. Patients gain access to the latest medical resources faster, and hospitals can start recouping costs quicker.
Agile procurement also makes organizations more responsive to changes. In healthcare, new drugs, devices, and software are constantly emerging. An agile buying approach allows hospitals to adapt to innovations and take advantage of new solutions right away. They can also adjust to shifts in patient needs or public health issues with more flexibility and speed.
The benefits of agile procurement for healthcare are clear: reduced costs, improved quality of care, increased patient and staff satisfaction, and a competitive edge. In an industry where responsiveness can truly be a matter of life and death, agile procurement strategies are enabling hospitals to make a real difference.
Best Practices for Implementing Agile Buying Strategies
To successfully implement agile buying strategies in healthcare, follow these best practices:
Build a Dedicated Team
Form an interdepartmental team focused specifically on procurement transformation. Include stakeholders from IT, finance, clinical areas, and supply chain. Leverage specialized procurement technology and tools to work collaboratively and share information in real-time.
Increase Collaboration
Increase collaboration between your organization and critical suppliers. Meet regularly to provide feedback on current contracts and plan future initiatives together. Suppliers can suggest innovative solutions to improve services and lower costs. Fostering these partnerships will lead to better outcomes for both parties.
Simplify Processes
Simplify and standardize your procurement procedures. Minimize complexity and redundancy. Automate repetitive tasks like purchase order creation and invoice processing. Review current policies and get rid of outdated rules that hinder agility. The easier you make it for people to do the right thing, the more adoption you’ll gain.
Obtain Early Input
Obtain input from internal stakeholders early and often. Talk to doctors, nurses, department heads, and others about their supply and service needs. Incorporate their feedback into planning discussions with suppliers. Make sure new contracts meet end-user requirements before finalizing terms. Constant communication and course correction are hallmarks of an agile approach.
Measure and Improve
Continuously measure the performance of your agile procurement strategies and make improvements. Monitor critical metrics like spend under management, savings achieved, and end-user satisfaction. Benchmark your progress against industry standards. Be willing to tweak or overhaul initiatives that aren’t delivering the desired results. An agile strategy is ever-evolving.
Following these best practices will help ensure your organization’s move to agile buying strategies in healthcare is a success. By building a dedicated team, increasing collaboration, simplifying processes, obtaining early stakeholder input, and continuously improving, you’ll be able to significantly enhance procurement operations and outcomes.
The Karlstad Hospital in Sweden needed to procure a new core banking system, a complex process that typically takes 12-18 months using traditional methods. They decided to try an agile approach instead. Working closely with suppliers, they were able to procure and implement a solution in just 6 months.
How did they do it? They began by mapping out the key requirements and then searched for suppliers that could meet 80% of their needs. Rather than issuing an official RFP, they invited a shortlist of vendors to discuss solutions. This allowed for an open dialog to understand available options better.
They chose two finalists and had them prototype their solutions. This “test drive” approach allowed the hospital to experience the systems firsthand and provide feedback, so the final solutions were well-matched to their needs. Contracts were then negotiated based on a target budget and timeline.
By staying flexible in their requirements, focusing on business outcomes, and collaborating closely with suppliers, Karlstad Hospital was able to procure a vital system in record time using lean-agile methods. Their success demonstrates how healthcare organizations can achieve significant benefits from an agile procurement strategy.
CMS: Modernizing Healthcare in Months
The US Centers for Medicare & Medicaid Services (CMS) needed to modernize their healthcare data systems, a process that would typically take 3-5 years using standard procurement. They decided to try an agile approach instead. By working with vendors in short sprints, CMS was able to overhaul and integrate systems in just 10 months.
How did they do it? They began with a vision for the end-to-end solution and then searched for vendors to collaborate on different components. Winning bidders were chosen based on their ability to work iteratively and meet milestones. Multi-vendor teams then worked in sprints to build, test and deploy solutions. Continuous feedback from CMS allowed for adjustments along the way.
By embracing an agile mindset, focusing on outcomes, and close collaboration, CMS achieved success through a fast, flexible procurement approach. Their achievement is a compelling example of how agile strategies can accelerate digital modernization in healthcare.
FAQs: Common Questions About Agile Procurement for Healthcare Answered
What exactly is agile procurement?
Agile procurement uses flexible and adaptable strategies to improve the purchasing process. Rather than strict annual budgets and long-term contracts, agile procurement focuses on speed, collaboration, and responsiveness to change. Teams can quickly evaluate options and adjust as needed to get the best outcomes.
How does agile procurement benefit healthcare?
Healthcare moves fast, and agile procurement helps organizations keep up. As technologies, treatments, and medical devices rapidly advance, agile procurement makes it easier to acquire the latest innovations. It also allows for fast responses in emergencies or unforeseen circumstances.
Do we have to completely overhaul our current procurement process?
No, agile procurement builds upon existing practices. You can start small by applying agile strategies to specific areas or purchases. Focus on more flexible budgeting, collaborative relationships with suppliers, and streamlined approval workflows. As teams get experience, agile techniques can be scaled up gradually.
What tools and software support agile procurement?
Healthcare supply chain software with eProcurement, eInvoicing, and analytics capabilities enable agile purchasing. These systems provide:
Real-time data on spending and contracts to make fast, informed decisions.
Automated workflows to speed up the procure-to-pay cycle.
Supplier collaboration tools to find the best partners and deals.
Spend analysis reports to identify new opportunities for agile purchasing approaches.
How can we get started with agile procurement?
Educate your teams on the benefits and processes of agile purchasing.
Review current procurement policies and look for ways to build in more flexibility and responsiveness.
Start with a small purchase or department and pilot agile techniques. Evaluate and scale up the approach.
Leverage healthcare supply chain technology to gain the data insights and process efficiency required for agile procurement.
Build collaborative relationships with key suppliers to work together on innovative solutions.
Agile procurement may require new ways of thinking, but it enables healthcare organizations to navigate change and come out ahead. With the right strategies and tools, it can transform purchasing from a rigid process into a strategic advantage.
Conclusion
You owe it to your patients and community to explore agile healthcare procurement now. The old ways of buying aren’t cutting it and people’s lives are on the line. Agile strategies can help you acquire the latest medical technologies faster, build a more nimble supply chain, increase transparency, and boost patient satisfaction. At the end of the day, you got into healthcare to help people. Agile purchasing is how you can achieve that mission and gain a competitive edge. What are you waiting for? The future of healthcare is here – go get it. The time for agile is now.
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