Premier Licenses Full Verticalnet XE Suite for Supply Management

Healthcare group purchasing organization extends its relationship with provider to further fight rising healthcare costs

Healthcare group purchasing organization extends its relationship with provider to further fight rising healthcare costs

Malvern, PA — September 12, 2005 — Healthcare group purchasing organization Premier, Inc. has expanded its relationship with supply management solution provider Verticalnet as part of its ongoing efforts to fight rising health care costs through better sourcing and procurement practices, the enabler has announced.

Headquartered in San Diego, Premier manages over $25 billion of spend annually in supplies and equipment. It is a healthcare alliance entirely owned by more than 200 hospital and healthcare systems.

Premier has been a Verticalnet customer for more than four years, initially implementing a Verticalnet application to provide centralized contract management and visibility into contract commitments across the company's supply chain, its members, suppliers and distributors. Now the group has expanded its relationship with Verticalnet by licensing the entire Verticalnet XE suite for Supply Management suite to enable its sourcing processes.

Verticalnet said that its XE solution provides an end-to-end supply management suite that enables sourcing and procurement organizations to balance price, performance and risk to achieve the lowest total cost of ownership.

Joe Pleasant, Premier's chief information officer, said that Verticalnet had a "great track record" with Premier, but that in making the decision about the future direction of its sourcing processes, the group looked at the whole market in an exhaustive process.

"Ultimately, we selected the Verticalnet XE suite because it delivers the sourcing and supply management components that we need to further improve our process and to provide sustainable savings for our members today and in the future," Pleasant said. "As a group purchasing organization for the healthcare industry, Premier's value proposition to its members is effective sourcing of goods and services from thousands of suppliers worldwide."

"With the complete Verticalnet XE suite for Supply Management, Premier and its members will have standardized, repeatable sourcing processes and a world-class workflow that will assure ongoing substantial savings for their collective bottom lines and reduced costs in the healthcare system," said Nathanael V. Lentz, president and CEO of Verticalnet.

Additional Articles of Interest

Tax and supply chain management are often considered to be two distinct disciplines, but this view misses an opportunity to leverage the business benefits achieved by an automated and integrated tax department. For more insights, read "Transaction Tax Management: A Seat at the Supply Chain Table," an exclusive.

— Is your company looking closely at procurement outsourcing, but doesn't quite know where to begin? These 10 steps are a good place to start for any finance professional who is studying this growing market. Read the article "Procurement Outsourcing: The 10 Things Finance Professionals Want to Know," an exclusive.

Maverick spenders making off-contract purchases and ignoring preferred suppliers lists are still causing many companies to bleed green. For tips on how to bring rogue spenders back from the underground, read "Maverick Spend Redux" in the June/July 2005 issue of Supply & Demand Chain Executive.