Case Studies

Enhancing Medical Glove Procurement for a Leading Hospital

December 19, 2024•by YCP Supply Chain

Client

A leading hospital with an annual expenditure of over USD 100,000 on medical gloves alone

Scope

The client sought to implement a comprehensive sourcing solution featuring these key strategies:

  • Single-sourced category

  • Cost reduction,

  • Dual sourcing,

  • Well-defined contractual agreements

Approach

  • Comprehensive data analysis of the previous invoices

  • Identifying potential new vendors based on customer qualification criteria, mutual non-disclosure agreement

  • Conduct an RFI process to gather market intelligence and evaluate suppliers’ qualifications

  • RFP data analysis to establish benchmarks,

  • Collecting samples from potential suppliers, then conducting rigorous testing under lab and practical field conditions

  • Reverse auction to introduce competitive dynamics

Results

  • Achieved 13% cost reduction through volume discounts, standardization, and value analysis

  • Addition of four new suppliers, diversifying supplier base and network contacts

  • Reduced costs among incumbent suppliers by 5%, mitigating switching costs

  • Secured one-year contracts with suppliers