Custom Clinical Packs -Case Study Hscn

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1. What information do you need to develop your sourcing strategy? Information is required to develop the sourcing strategy for custom clinical hip and knee packs. The understanding phase of the strategic sourcing cycle is where all sourcing initiatives originate, either as a result of ongoing internal analysis or as a response to an end user or external request. The senior management teams of all four hospitals identified this as a great opportunity to reduce cost, increase OR efficiencies and standardize product/equipment by developing custom clinical hip and knee packs. The goal of the understanding phase is not only to identify ways to reduce cost or improve value, but to understand options in the market, internal capabilities and end user needs. Using spend analysis will then identify the cost of the custom packs at each hospital, the number of items included in the custom packs, the total spend of the custom packs, and each suppliers current spend providing the custom packs. This information will allow categorization by common suppliers and components and establishes the baseline for measuring future improvements. Contract analysis will indicate spend that is on and off contract and the number of affected suppliers with contracts. It will identify if items in the custom packs are contracted individually or purchased as a complete custom pack. This analysis will identify if it better to allow the custom pack supplier to negotiate price for the components or if the hospitals should negotiate the components and pay the supplier for the assembly of the packs. Performing a needs assessment gathers information on the end-users needs. This analysis results in valuable information that can be used to create templates to improve the effectiveness of the custom pack and its contents. To achieve this, as the bid administration team, you want to understanding

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