MANAGING A MULTI BILLION $ SPEND PORTFOLIO
The alliance of medical service providers all faced similar challenges. Their individual spends were fragmented and poorly consolidated and the momentum for consolidation of spend as an alliance was fading. There were key suppliers in common but the alliance's aggregate spend was diluted by a lack of coordination, poor data and a lack of visibility. The alliance knew that there were opportunities waiting to be exploited within the spend portfolio, but needed hard data to make a start.
We captured the contract's of each provider and analysed their spend data and then combined that data across all the providers in the alliance. For the first time they had visibility of who bought what, from which suppliers and on what terms. We used Spend Console to assist us identifying variances within and between the providers and to build a spend map to illustrate how the alliance spent its money.
The outcome was more than a simple spend analysis and, it was more than an opportunity analysis. We partnered with the alliance to identify, prioritise and resource the opportunities that existed. The alliance migrated from a position of weakness in negotiation to a position of power. We supported the alliance to develop the opportunities though RFPs and negotiations. Not only did our client secure better outcomes they were able to track spend and identify when suppliers were not charging agreed rates. The lesson learnt is that technology solutions can extract latent value from the spend portfolio and by building a business case can scale the resource to the size of the opportunity, rather than scaling the opportunity to the size of the available resource.
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