Enhancing Medical Glove Procurement for a Leading Hospital

Client

A leading hospital with an annual expenditure of over USD 100,000 on medical gloves alone

Scope

The client sought to implement a comprehensive sourcing solution featuring these key strategies:

• Single-sourced category

• Cost reduction,

• Dual sourcing,

• Well-defined contractual agreements

Approach

• Comprehensive data analysis of the previous invoices

• Identifying potential new vendors based on customer qualification criteria, mutual non-disclosure agreement

• Conduct an RFI process to gather market intelligence and evaluate suppliers’ qualifications

• RFP data analysis to establish benchmarks,

• Collecting samples from potential suppliers, then conducting rigorous testing under lab and practical field conditions

• Reverse auction to introduce competitive dynamics

Results

• Achieved 13% cost reduction through volume discounts, standardization, and value analysis

• Addition of four new suppliers, diversifying supplier base and network contacts

• Reduced costs among incumbent suppliers by 5%, mitigating switching costs

• Secured one-year contracts with suppliers