With cost pressures mounting and suppliers leveraging contractual force majeure language due to COVID-19, Muda Management helps to close a health systems budget deficit. In partnership with AArete Consulting, Muda Management delivers a 12.2% hard cost reduction, or 4:1 Return on Investment.
Problem
A public health system was challenged with maintaining their standard level of patient care due to supply shortages and rising costs. In addition, staffing shortages made purchasing oversight a difficult task for their supply chain team.
Solution
By leveraging our clients ERP system, historical supplier spend is assessed and a pipeline for future purchasing requests is set up. Through supplier and contract negotiation paired with increased spend scrutiny, our client sees a dramatic reduction in year over year hard cost savings. In addition, procurement operational improvements to gain purchasing request oversight cultivated millions of dollars spend mitigation.
Result
The result is a closing budget deficit for our client and $16M+ in hard cost reduction. In all, Muda Management and AArete delivered a 4:1 ROI for our client.