Approximately $80M of hard savings, validated by the client’s finance department, within two years of the program’s kick-off.

Client: US Healthcare Provider Category: Indirect / Direct Spend Sector: Healthcare

  • Managed and approachable spend was $2 billion • A comprehensive category spend analysis had not been performed in three years • A third party industry aggregator was used to leverage spend and negotiate contracts • Many leveraged category contracts were renewed annually for as many as 10 years • Most expiring contracts called for price increases in industries where pricing trends were stable or downward


  • Conducted a detailed spend analysis, by sub-category, supplier and market basket line items • Performed objective stakeholder interviews • Analyzed and dissected current processes to establish waste and inefficiency • Recommended input criteria based on external and internal difficulties and current buying pattern • Recommended a phase 1 Quick Win approach targeting $10 million fiscal and $50 million annual savings • Recommended a phase 2 cross-functional sourcing initiative, targeting additional $120 million year 1 savings • Recommended a phase 3 additional initiative, targeting $140 million year 2 savings


  • Client presented with direction and business case for improvement • Neutral third party process eliminated subjectivity • Industry research and benchmarks pointed to a 12-15% annual savings target • Savings targets quantified and qualified with facts and data • Stakeholders involved in process and priorities were based on market trends and facts/data • Fiscal year one savings targets were achieved and second year savings are on target • Mitigated price increases in key spend categories by establishing industry benchmarks in North America, resulting in significant savings and change in strategy, e.g. linen and laundry, furniture, printing services and temporary labor