Marketplace technology opens up the world of potential suppliers through simple and efficient Internet auction techniques. Procurement will use marketplace technology to find the best vendors, choose the right ones and get rid of the rest.
Procurement for healthcare services
Amidst the maze of HR benefit alternatives, there is a hidden reality so important to the CFO that it needs to be restated: employee benefits are not an art. They are another important category of services to be purchased and the purchase of this important category of service is a direct process fit to the capabilities of a modern procurement team.
The more that a company moves to benefit plans that offer defined contribution and value-added benefit programs, the more closely these types of benefit plans permit vendor-to-vendor and plan-to-plan comparisons. These types of plans are ideally suited to modern sourcing techniques and procedures using Internet procurement tools.
Using the right procurement techniques and software, companies can quickly expand the universe of vendor- and plan-candidates to find those that represent the best value.
Under the management of today’s procurement department, marketplace “software in a box” has the Internet shopping cart always in motion—and the top vendors offering the best benefit programs are always welcome.
On the Internet, Web procurement never sleeps. It’s a place where services and goods—including health insurance, dental and vision, pharmacy and other benefits—are continuously being bid and value is being optimized in favor of the employer group.
In this marketplace, requests for services and vendor commitments are fully visible and fully auditable. Costs are reduced by competition and prior approval workflows. The manual processes of writing requisitions, laboring over requests for proposal (RFP’s), preparing purchase orders (PO’s), processing paper invoices, writing and mailing checks, are no longer needed. Now, existent electronic processes are leading edge and far lower in cost than the old ways.
The do-it-yourself marketplace routinely adds black ink to the bottom line. What are you waiting for? Get your procurement department involved.
Dennis Toohey, Director of Solutions for Puridiom, holds 20+ years of experience including procurement management and systems, strategic sourcing and supply chain management for companies such as Blue Shield of California and North American Philips.