“We expect to achieve a multi-millions of dollars a year in supply chain savings. We also expect to provide new insights into inefficiencies and opportunities within our supply chain.”
A rapidly expanding regional healthcare provider spends over $800 million dollars a year buying supplies for more than a dozen hospitals and associated medical offices. The company uses Oracle’s PeopleSoft Supplier Relationship Management system to manage their supply chain. In addition, there are other “homegrown” applications and other package software systems with information that also needs to be integrated with the PeopleSoft data into one data warehouse. The supply chain team expects to optimize their buying processes by identifying buying inefficiencies such as orders that are not priced in line with supplier contracts and save tens of millions of dollars a year.
CSG provided Information Architects, Developers, and Project Management to design and build the data warehouse and the associated processes to extract the data from various systems, transform it to a standard format, and load it into the data warehouse. CSG and the healthcare provider are building this solution using the Microsoft stack of data warehouse tools as well as using an industry-leading visualization system to create reports and interactive dashboards.
The data includes millions of records of supply chain information such as requisitions, purchase orders, invoices, freight, and inventory data. The initial focus is on optimizing buyer compliance with contracts. All too often, buyers within the organization do not submit orders using the correct process to ensure the pricing is at contract levels. By identifying compliance issues, the healthcare organization can implement both training and processes to close the gap.
The healthcare organization expects to achieve a minimum of $50M a year in supply chain savings. Analysis of this data is also expected to provide new insights into inefficiencies and opportunities within the healthcare provider’s supply chain.