How Northside Hospital Reduced Supply Spend
Meperia Provides a Broadscale Strategic Sourcing Approach
“Northside chose to work with Meperia because its strategic sourcing approach gave us instant visibility into our supply purchasing and contract activity, and immediately identified areas where we could improve and save. It provides a roadmap to better data, greater standardization, and more unified purchasing across our facilities. Meperia provided a path to ongoing savings.”
— Carl Waller, Northside’s Vice President, Supply Chain Management
Supporting an extended period of rapid growth put tremendous pressure on Northside’s supply chain to meet increasing demand for a wider array of products at optimal pricing. Initially, there was poor visibility into overall spend and little consistency in procurement processes across the system. The item master contained hundreds of duplicates created by both stock and non-stock items, 4,000 invalid products with 50% of items not ordered over the previous 18 months. This made it difficult for requestors to identify the exact item they needed from the thousands available and hindered efforts to standardize supplies. More than half of its items were non-file—purchased outside of Northside’s item master and therefore outside the control of the supply chain team. In addition, requisitioning was primarily a manual, paper-based process.
The results of a product benchmark study indicated that there was over $15M in annual price reduction opportunities for med-surg supplies. With less than two percent of con-tract association to spend, Northside was missing significant opportunities to optimize contract pricing. To identify and capitalize on potential savings opportunities, it became clear that Northside would have to fundamentally redesign the sourcing, contract management and purchasing processes. The newly designed processes would have to be enabled by a dynamic, cloud-based digital platform that could integrate with Northside’s ERP system and would be capable of providing real-time information for informed decision making. After defining business requirements, Northside performed due diligence on third-party applications that could optimize the procurement processes. Meperia was selected as the clear best fit for Northside.
Northside Hospital is one of the most respected and fastest-growing health care organizations in the Southeast and is committed to balancing clinical excellence with compassionate care. The health system leads the U.S. in newborn deliveries and is among the state’s top providers of cancer care, sports medicine, cardiovascular and surgical services.
It has been recognized by Healthgrades, the leading online resource for information about physicians and hospitals, as one of the top U.S. hospitals for outstanding performance in delivering a positive experience for patients during their hospital stay. Northside also has been ranked as one of the Best Places to Work among all top large employers in the United States by Glassdoor.
com and Comparably.com.
Download the full case study to find out how Northside Hospital:
- Got their data under control
- Increased standardization
- Improved contract compliance by 65%
- Reduced manual work/rework
- Improved risk management through automatic identification of FDA Recalled products