Savings Beyond Price™
Innovative Supply Savings and Quality Solutions That Work
Strategic Value Analysis® in Healthcare
Did You Know...?
That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Inside This Issue
Just Think of What You Could Do With Training!
Sorry, No Price Break Possible!
Savings Beyond Price -Weekly eNewsletter- Sept. 6, 2007
Robert T. Yokl
President & Chief Value Strategist
Greetings!
Just Think Of What You Could Do With Training!
I’ve seen hundreds of supply value analysis programs that have saved millions of dollars without an ounce of training, but just think of what they could have done with advanced value analysis training. And just imagine how training will help these same organizations today to continue to make those big savings happen when it’s getting even harder and harder to do so!
This reminds me of a healthcare system that I worked for many years ago that generated a healthy bottom line every year by the sheer willpower of their chairman of the board. Yet, this same organization could have doubled or even tripled their profits annually if they would have just planned, organized and systemized what they were doing to streamline the variation in their practices. Instead, this healthcare corporation wasted their time, money and resources by letting everyone do their own thing!
Is your healthcare organization making this same mission critical blunder with your supply value analysis program? If so, we would like to give you the opportunity to “right your ship” with our new three-day Certified Value Analysis Leader™ Training Program that can and will change your value analysis world.
This comprehensive A-Z advanced value analysis training course (class size is limited) will cover everything you would want to know to make your supply value analysis program wildly successful. You can learn more here www.ValueAnalysisUniversity.com.
If you haven’t had even one day of advanced value analysis training then this is the training program for you. Or, if your supply value analysis program is sputtering, squeaking, or worse yet, on life support then this is absolutely, positively the training program for you!
Your Partner In Innovative Savings Solutions,
Robert T. Yokl
President & Chief Value Strategist
P.S. By the way, each attendee will receive a comprehensive set of materials that include topics not covered in the three day training program. They include a 233 page training manual, my best-selling Strategic Value Analysis® In Healthcare book, 45-minute Value Analysis: Savings Beyond Price Seminar CD, and VA Project Manager’s Guidebook ($349.00 value)
Sorry, No Price Break Possible!
“Price Is Only One Component Of Your Total Cost Of Acquisition That Must Be Explored On Every Purchase”
How many times are you faced with a supplier who politely tells you that “Sorry, No Price Break Possible” on his or her product, service or technology because they are sole source, new to the marketplace or have some unique functions or neat features you must have to meet your mission?
Does this mean that you will continue paying the ever-increasing cost your supplier will surely demand over time? Or, are there other options or possibilities that you might pursue when a supplier refuses to cooperate or collaborate with you on price?
The answer is: That price is only one component of your total cost of acquisitions that must be explored on every purchase starting with these three tactics:
1. Revamp your specifications so other suppliers can also provide the commodity you desire.
It is rare that you can’t overhaul your original specifications to be more flexible and less precise to enable more suppliers to meet your requirements.
For example, how many times have you or your supplier been out of stock on an irreplaceable item when an acceptable substitute was found to meet your customer’s specs without missing a beat. This lesson should actually demonstrate to you that no item is really irreplaceable, matchless or rare!
2. Functionally analyze all of your supplier’s cost from acquisition to disposition to wring out all unnecessary cost.
As I just mentioned, when you purchase a product, service or technology the purchase price is only one component of the commodities cost. Therefore, you need to identify all cost (transportation, in-use cost [labor and non-labor], disposal cost, replacement cost, etc.) so that you can:
a. Eliminate any cost that you don’t need, want or require. For instance, pick up the commodity with your own truck to do away with your transportation cost.
b. Negotiate a 5-year contract for the supplies for capital equipment to reduce your long-term supply cost. I just recommended this to a client of ours who was buying a new robot to lower his cost of acquisition.
c. Re-design how you use the product, service or technology to reduce your utilization cost (i.e. use recyclables vs. disposables)
This functional analysis when completed will enable you to find the soft spots in your supplier’s offering that you can capitalize on – not acquiesce!
3. Look for functional equivalents to meet your requirements.
There is usually a functional equivalent (e.g. Tylenol vs. Advil) for 99.7% of the product, service, or technology that you purchase that can meet your needs almost as well, if not perfectly. A good place for you to start your search for these equivalences is ECRI.com or Medcompare.com.
So when your supplier says, “Sorry, No Price Break Possible”, now you know that you have numerous options and possibilities for reducing your total cost of acquisition from this same supplier that has really nothing to do with price.
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