Post on 20-Aug-2020
transcript
Building effective supplier relationships to reduce
costs and increase procurement capabilities
Stakeholder Relationships
3rd Annual Health Procure Conference – Nov 2016
Renee Hodge- National Procurement Manager
• Largest DI network in Australia with
20+% market share
• 240 radiologists and 186 clinics
across six states
• Provider of choice for hospitals,
Specialists, GPs and Allied Health
Professionals
• National contracts (e.g. Australian
Defence Force)
• State-of-the-art equipment and
advanced IT infrastructure
• Largest and most sophisticated
teleradiology service in Australia
• Network efficiencies in operations,
procurement and capex management
NT
6 clinics
QLD
27 clinics
SA
23 clinics
NSW and ACT
38 clinics
TAS
18 clinics
VIC
74 clinics
Largest Australian provider of Diagnostic
Imaging(DI) services with genuine
competitive advantages
WA
Extensive geographic footprint2
Leading market position1
I-MED16%
Sonic11%
Primary9%
Integral5%Capitol
4%
Public hospitals15-20%
Other35-40%
Procurement’s
role is
strategic in
developing
business
decisions
Stakeholders are people who will be
directly impacted by a business decision
Collaboration
with
stakeholders
ensures the
business
achieves the
best outcomes
Stakeholders are both internal and external
to your business
Suppliers
Customers
Competition
GovernmentEmployees
Owners
Contractors
Internal
Stakeholders
External
Stakeholders
Understanding
We involve stakeholders in developing
business decisions … why?
Stakeholder buy-in
supports the
business decision
and ultimately
influences the
success of the
project through the
business
Stakeholders
share their
experience and
you gain
Knowledge
Ideas
Stakeholders have invaluable experience!
Successful outcomes are gained through
effective stakeholder interactionSt
akeh
old
erin
flu
ence
High
Low
Very influentialbut their goals may not be in line with the
project
Key PlayerTheir
engagement is critical in the
process
Minimal engagement
required
Important for the success of the
project but minimal
influence
Low---------------------------------High
Stakeholder Interest
High Influence/ High Interest
High Influence/ Low Interest
Low Influence/High Interest
Low influence/ Low Interest
Stakeholder Matrix
Success comes with effective stakeholder
engagement
ENGAGE identify the right stakeholders
COLLABORATE work together to achieve both operational and financial goals
CORRELATION there is a link between engagement and financial outcomes/success of the project
WIN / WIN
Choosing the right supplier is key to the
ongoing success of any decision
How do I choose the right supplier?
Is supplier engagement critical from inception or
can we work on it?
Building a supplier relationships can
ensure a win / win result
• Supplier performance reviews
• Invite 360°feedback
• Regular communication
• Collaborate with the supplier to resolve issues
• Set clear expectations
• Treat the supplier as a valuable asset
Leverage supplier capabilities to achieve
the desired outcomes
Strong link with Suppliers
Financial Benefits
• Suppliers are the experts in their area; use
their expertise to improve processes
• Leverage your operational knowledge
• Encourage interaction between preferred
suppliers
Strategic partnerships with suppliers are
critical to delivering strong outcomes
Customer
• Executives
• Management
• Operations
Supplier
• Executives
• Management
• Operations
Multi tiered engagement model Set up regular meetings at
all levels of the
organisations
Ensure communication
with all stakeholders
continues throughout the
arrangement
Provide the suppliers an
opportunity to
demonstrate what is
happening in their
business
Case Study #1: Price reduction/ supplier
engagement
CONSOLIDATION TO ONE
SUPPLIER
DEEPER SUPPLIER
ENGAGEMENT
COST SAVINGS THROUGH DEMAND
MANAGEMENT
TODAYS SPEND IS LESS THAN
25% OF PREVIOUS
SPEND
Objective:
• Consolidate film spend and capital to one supplier for over 180
clinics around the Network
• Develop reporting requirements to ensure reduction of film usage
• Work on strengthening supplier relationship with commitments of
10% year on year reduction of spend
Case Study #2: Stakeholder engagement
Objective:
To review and determine uniform requirements for the business.
Taking into account
• Over 3,500 staff around the country requiring new uniforms
• 3 different brands
• 2 types of employees
Identify Key Stakeholders
Define requirements
Go to Market ShortlistStakeholder meetings –
internal/external
Appoint preferred supplier
Outcome:
• Cost savings with the appointment of the new uniform supplier
• Brand consistency as well as implementation of a style guide
• Staff engagement increased due to staff involvement
• Superior quality uniforms
• Supplier engagement
Thank you