Major Hospital


Situation:

For 20 years, this client had been buying the same mix and specification of products to support their needs for food service and housekeeping items. Concerned about identifying major cost cutting opportunities, the hospital administration asked us for help.

Opportunity:
Provide hospital with specific direction and guidelines to help them buy more effectively. Prepare and implement a test plan that could be rolled out to generate substantial savings as well as improved efficiencies in managing inventoried items.

Actions and Results:
Paradigm Consulting Services performed a field survey and randomly selected 20 products (out of a total of 450 SKU’) that the hospital was presently ordering; (less than a 5% sample). Paradigm evaluated these products based upon functionality, yield and cost. We were able to replace or eliminate four sku’s and still get the job done. In addition, we reduced cost by 28% against the remaining 16 sku’s.


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