Strategic Sourcing

What is strategic sourcing in healthcare?

Strategic sourcing in healthcare is a way of managing the supply chain by aligning the sourcing process with organizational-wide goals. By using this technique in which healthcare systems re-evaluate and improve purchasing activities, healthcare systems can better assess and allocate resources, reducing costs and improving quality care at the same time.

By improving supplier selection and having better visibility into the purchasing activities, strategic sourcing also minimizes risk in the procurement process.

Other benefits of using this technique include a strong return on investment (ROI), vendor stability, health record data security, and sustainability initiatives within the supply chain.

Why is strategic sourcing important in healthcare?

Through strategic sourcing, healthcare organizations gain the power to make informed decisions that will help reduce costs and wasted supplies while still remaining compliant with new industry standards. Healthcare is an ever-evolving field, and strategic sourcing is a vital tool for providers to ensure industry excellence. Strategic sourcing can help healthcare organizations identify areas of waste, create improvement measures, and remain competitive as pricing for materials and services increases. Additionally, it improves the transparency of the supply chain, allowing providers to better track inventory and trends in changing costs over time.