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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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