With a new year comes an opportunity to make resolutions—small habit changes that can add up to big impacts over time. Sticking to resolutions can be a powerful tool in both your personal life and your work life. And in the increasingly complicated world of supply chain management where annual prices jumped as much as 10% last year, there’s no better time to start a new savings resolution for yourself. But just like eating healthy or exercising more, there’s no magic one-time solution for meeting your goals; it’s all about getting back to the fundamentals and locking in habits that stick when things inevitably get hectic.
With that in mind, here are four simple-yet-powerful principles for reaching your New Year’s savings resolutions:
Competition – Of course, you’re no stranger to using competition between suppliers to drive costs down. But with so many competing priorities demanding attention, making a purchase decision after only one quote from a familiar supplier can feel like a major time saver. But is the time saved worth the cost? Taking a little more time to force competition is a proven way to get better pricing, saving money (and headaches) down the line.
Choice – Even when buying highly specialized equipment without any obvious competitors, you’re not out of leverage. Would your facility consider pre-owned or refurbished equipment? Are there similar models that also meet your needs? Introducing alternative solutions in the buying process early can anchor pricing discussions and prevent overpaying (even if a supplier is the only game in town).
Clarity – Don’t fall victim to quotes lacking critical information. It sounds obvious, but so much saving potential falls through the cracks of confusing data tables, vague line items, or hidden terms. Supplier reps don’t always provide the detail you need to accurately validate a quote, but that doesn’t mean you shouldn’t ask for it anyway. You’re entitled to the information you need to make an informed decision. Incomplete information can cost a lot, so make sure you know exactly what you’re paying for.
Connection – Very few hospitals buy only a single product from one supplier. More often, multiple departments are all buying many products from the same supplier every year. In that case, lean on that collective purchasing power and total spend with each supplier to your advantage. Negotiating the price for any one item is a lot easier when you frame it in the context of your full purchasing history. Connect the dots to aggregate total spend and make the supplier treat you accordingly.
Whether it’s January or June, it’s never too late to implement a new resolution, especially in when it comes to savings. With these four Cs in your back pocket, there’s no telling how much a little habit change can save you by this time next year. And hopefully, this serves as a little reminder to help 2025 be the year of realizing all the savings you deserve.