Monday, June 29, 2015

Webinar Highlights - 3 Great Ways to Save on Capital Equipment by Creating Healthy Competition with Your Suppliers

In case you missed it, Miga's most recent monthly webinar highlighted the importance of creating a competitive environment when negotiating equipment purchases. Actionable best practices for fostering this kind of competitive atmosphere were offered throughout the presentation by Miga's CEO, Peter Robson.

It is no mystery that competition is important in any type of negotiation.  Not only does it drive down prices, but it also allows hospitals to make better, more informed decisions.  The webinar showed examples illustrating how creating healthy competition while trusting your suppliers with respect will give you more control of future equipment negotiations.

Here are three great ways to establish a more competitive environment when negotiating medical equipment:

1. Have a clear, standardized process for buying medical equipment - A clear, efficient buying process can ensure that hospitals buy the equipment they need in the right way every time.  One best practice utilized by many leading supply chain organizations is to always get a competitor quote when buying equipment. Though the department might not have any interest in switching products, the potential for a competitive situation will reduce leverage a supplier might have in the negotiation.

2. Be transparent and share information - Robson said it best:  "If you give good information, you get good information back."  Being transparent in providing information sets the tone for the supplier to be more transparent themselves in future interactions.  Furthermore, if you make your needs perfectly clear as a customer, suppliers in a competitive atmosphere will often go the extra-mile to help meet those needs.

3. Avoid "over-reliance" on any single supplier - Though standardization is a critical initiative in most hospital supply chain departments, it is also important to not "lock yourself in."  By not being too reliant on any single supplier, you can give yourself the flexibility to pick the right product from the best supplier at the most competitive price.

By using these three methods, hospitals can foster a competitive supplier environment and ultimately save their hospital a lot of money.
Stay tuned for our next installment of Miga's Webinar series!

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