The pandemic has turned the tried and true strategy of sole source supplier relationships on its head. Now forced to deal with frequent out-of-stocks, backorders and limited allocations on everything from ventilators to blood collection tubes, hospitals are finding that sole source agreements are limiting their ability to get critical items when most needed. How can your hospital adapt to this new normal?
Reduce the Risk of Sole Source Agreements
Don’t put all of your eggs in one basket! Whenever possible, establish at least two pre-approved suppliers for each mission-critical product that have the buy-in from your clinical staff. By creating a back-up plan, when shortages occur, you are increasing the chance of finding available inventory quickly and before other buyers.
Proactively establishing multiple supplier relationships will give your hospital the best chance of getting what it needs, particularly when every other hospital may need the same thing. You might give up a modicum of savings on unit costs, but the consequences of cancelled procedures and reduced patient care are far more expensive. For all these reasons, diversifying risk and reducing reliance upon sole source agreements can deliver multiple benefits including your own peace of mind.
