BMS works within any operational environment!
 

Medical Industry GPO Use Case:

                       

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Company Description

 

The company is a Group Purchasing Organization for Healthcare facilities and is headquartered in Los Angeles, California.  The organization streamlines the purchasing task for 150 hospitals located throughout the United States.  The hospitals range in size between 150 to 1500 beds.  They have been in business since 1998.  The company’s charter is to provide hospital’s with the utmost in quality and service by combining the strength of each entity and using the buying power of the entire group of hospitals.  This collaborative effort increases efficiencies and reduces costs.  In addition, the company provides contract negotiations with the suppliers as well as a supplier network of preferred Vendors. They aid in product selections and evaluations and provide guidance on cost avoidance.

                                                                                    

The Problem

 

The company has been increasing its member base on a steady basis and the predictions are for the trend to continue.  As a growing company in a highly competitive market, the organization wanted to look for ways to be more efficient and provide their members with added services in several areas.  One key area was with their ability to automate their purchasing process and specifically the bid process.  The current progression was for members to submit data via forms to consolidate their information with others in order to receive volume discount pricing.  The members would also ask for assistance with contract reviews, product availability, scheduling and costs.  The challenge with this action was the file formats were inconsistent, product definitions were not consistent and every member had their own preferred vendor list.  In a nutshell the bid process was cumbersome, not cost effective and a lengthy manual process.

 

As a result the Group Purchasing Organization had discussions as to how they could streamline this process and somehow combine the data in an automated fashion.  The organization concluded that by doing this they would be able to offer greater value to their members and further differentiate themselves from their ever increasing competition.  Ultimately the result would be significant cost savings to their customers and their ability to optimize their supplier contracts and thus eliminating the manual process that currently was in place.

 

The Solution

 

The Group Buying Organization realized that by automating the bid process for their members as well as members across the country, they would be able to more efficiently and effectively have the ability to streamline processes, which will allow them to reduce costs and significantly increase their buying power.  The manual bid process would be eliminated with functionality that combines the purchases of their members for a product type into a single request.  They will have the ability to combine configurable and non configurable products without manual interventions or differentiators.  There will be no need to navigate through complex catalog hierarchies found in their current system.  Products can be selected and scheduled based on the buyer’s timeline and destination with the ability to schedule multiple products concurrently.  Consolidated purchases can be tracked and monitored as well as a recalled for future bids. 

  

After researching various solutions, the Group Buying Organization chose Wynntek’s BMS solution.

 

BMS, which is technology that co-exists with the hospital’s current procurement software, is a group buying engine that combines purchases and RFP’s within entire organizations, divisions and departments.  Thus, enabling significant reduction in costs, control spend management and the optimization of their supplier contracts.  By combining the organization’s purchasing power they were able to schedule what products were to be purchased and when, enabling them to eliminate manual processes resulting in unstandardized file formats, inconsistent product nomenclatures and misused policies.    This unique bidding platform provided functionality that allowed them to combine the purchases of clients for a product type into a single request.  With its intuitive user friendly environment, it accelerated and automated the bidding process and allowed them to provide on-line buyer and vendor registration, on-line awards and provided Pool email notifications.  Because BMS is Web Based, there was no large footprint and the technology provided easy access for both Buyers and Vendors.

 

The BMS solution provided significant operating cost savings through reduced processing costs and consolidated purchases with preferred buyers.  In addition, with BMS they had the ability to track/recall previous pools or RFP history, which streamlined repetitive buys.    Other key advantages included the ability to attach documents to both buyers and suppliers and import existing buyer and supplier profiles.

 

With Wynntek’s BMS, their organization was able to streamline their Bid and Purchasing process, resulting in reduction in material to produce bid packages.  This powerful solution positively impacted their organizations ability to efficiently combine purchases and reduce costs.

 

Corporation Use Case: 

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Company Description

 

Company is headquartered in Los Angeles and conducts business across North America and overseas.  Major locations include LA, Atlanta, Dallas, Chicago, Miami, Seattle, China and Hong Kong.  The company has been in business for more than 35 years, employees more than 12,000 people and has sales exceeding $3.1 billion dollars.  They are a manufacturer of parts and devices for audio components, radios, televisions, and mobile devices.  They sell to both the consumer and professional markets.

 

Each division is responsible for specific markets and typically caters to different businesses and customers.  While each division purchases goods independently from each other, they often are buying the same products and in many cases using the same vendors.  The volume of purchases fluctuates and is sometimes hard to predict.  The current spend on average per division is between $75m to $125m per year.

 

The Problem

 

While the company is profitable and business is trending up, the company wanted to look for ways to be more efficient and reduce overall costs.  One area of reduction that the CFO asked the leadership team to investigate was their purchasing of goods.  Each division was asked to explore ways to streamline the purchases in an effort to reduce costs.  Currently the company has standardized on a Procurement tool from a leading software company. While this procurement tool was useful in the area of aiding their ability to issue purchase orders, manage inventory levels and track orders, it lacked in the area of managing their bid process or their ability to combine purchases across the entire organization.  Since the company has many buying locations and they serve different markets, it was difficult to consolidate their efforts. Yet, they felt that that if they could streamline their processes and leverage their buying power, they would be able to increase their cost savings. 

 

As a result there were discussions internally as to how this might be possible, and questions asked as to whether there might be a way to automate group buys rather than purchasing through each division independently. The team felt that by doing this they would be able to increase efficiencies and optimize their supplier contracts and thus eliminating the manual process that consumed time energy and resources and ultimately cost money.   The company estimated that by combining the purchases they could save a minimum of 15% on their current spend, which would represent as much as $12.5 million dollars in savings annually per division for product purchases alone.

  

The Solution

 

By combining purchases throughout the entire organization the company will be able to reduce costs, control spend management and optimize supplier contracts.  By doing this they will be able to more efficiently and effectively handle their purchases and streamline their bid management process, allowing them to reduce time-to-market, labor costs and significantly increase their buying power.  The manual bid process will be eliminated with functionality that combines the purchases of clients internally and externally for a product type into a single request.  They will have the ability to combine configurable and non configurable products without manual interventions or differentiators.  There will be no need to navigate through complex catalog higharchies found in their current system.  Products can be selected and scheduled based on the buyer’s timeline and destination with the ability to schedule multiple products concurrently.  Consolidated purchases can be tracked and monitored as well as a recalled for future bids.

 

After researching various solutions, the company chose to go with Wynntek’s BMS solution.

 

BMS, which is technology that co-exists with their current procurement software, is a group buying engine that combines purchases and RFP’s within their entire organization, divisions and departments.  Thus, enabling significant reduction in costs, control spend management and the optimization of their supplier contracts.  By combining the organization’s purchasing power they were able to schedule what products were to be purchased and where, enabling them to eliminate manual processes resulting in nonstandardized file formats, inconsistent product nomenclatures and misused policies.    This unique bidding platform provided functionality that allowed them to combine the purchases of clients for a product type into a single request.  With its intuitive user friendly environment, it accelerated and automated the bidding process and allowed them to provide on-line buyer and vendor registration, on-line awards and provided Pool email notifications.  Because BMS is Web Based, there was no large footprint and the technology provided easy access for both Buyers and Vendors.

 

The BMS solution provided significant operating cost savings through reduced processing costs and consolidated purchases with preferred buyers.  In addition, with BMS they had the ability to track/recall previous pools or RFP history, which streamlined repetitive buys.    Other key advantages included the ability to attach documents to both buyers and suppliers and import existing buyer and supplier profiles.

 

With Wynntek’s BMS, their organization was able to streamline their Bid and Purchasing process, resulting in reduction in material to produce bid packages.  This powerful solution positively impacted their organizations ability to efficiently combine purchases and reduce costs.