August Consulting helps health provider identify procurement savings
Working together with August Consulting, a major private healthcare provider in Australia identified procurement-based cost savings of over $5 million.
Supporting the healthcare organisation with its cost optimisation programme, consultants from August Consulting conducted a detailed review of procurement expenditures across both clinical and non-clinical spend.
August Consulting reviewed commercial arrangements and buying practices across the institution, aggregating multiple data sources to provide a detailed overview of each category by supplier, site, subcategory and product.
The analysis was then tested and validated with business representatives and procurement professionals. Workshops with key stakeholders were organised to shed light on improvement potential across areas of spend.
A procurement plan was developed spanning a series of initiatives that would deliver quantifiable and auditable, year-on-year procurement benefits. This included negotiations with incumbents, go-to-market exercises across all spend areas, including clinical consumables, prosthetics, pharmaceuticals, energy, labour hire and site maintenance.
All in all, the plan could deliver between $5 million and $8 million in benefits over a two-year period.
Founded in 2018, August Consulting specialises in procurement and supply chain services. The firm services clients from diverse industries, including healthcare, aged care, manufacturing, education, agriculture, and oil & gas.
