An Australian district health service had a requirement to increase the transparency of their goods and services spend and determine where they could obtain bottom line savings across their $1.8bn of spend. As part of a district wide initiative, the client required significant savings to be identified, of which one area was through their supply chain and procurement practices. The organisation engaged Caliba to undertake an Opportunity Assessment to determine where the savings could be achieved.
Caliba was given access to the full $1.8bn spend profile in order to undertake the following:
- Categorise the data into tangible health categories using the Caliba health taxonomy.
- Review all supplier agreements to determine contractual position of the district.
- Undertake an analysis of the entire supply chain to identify opportunities outside of procurement specifically.
- Identify savings and produce an implementation plan for the delivery of those savings.
- Identification of low, high and stretch savings opportunities to give the client options depending on the level of change they were willing to push across the organisation.
- Greatly improved visibility of the clients spend profile as well as improved transparency on their contractual position.
- Identified opportunity to aggregate and streamline the procurement situation across the three major hospitals.
- Clearly defined and executable implementation plan to deliver savings.
Caliba Group are procurement and commercial specialists, with vast experience in data analysis, opportunity identification and savings realisation (Caliba client base includes multinationals, niche firms, and government agencies). We are therefore well positioned to assist any size company looking to identify savings opportunity across their supply chain and goods & services procurement.