Analysis & Resolution
The MDM platform automatically grouped all 43 catheter types by specifications, revealing 12 types served identical clinical purposes but were purchased from different suppliers. Analytics highlighted 35% price differences for functionally equivalent products across hospitals. The system calculated that 43 SKUs created $127,000 in annual carrying costs when clinical needs could be met with fewer standardized options.
Recommendations Delivered
Consolidate to 18 clinically-validated catheter types from 3 preferred suppliers, engage interventional cardiologists to establish evidence-based selection criteria, and negotiate network-wide contract leveraging $1.8M annual volume with a 32% volume discount and enhanced lot traceability.
Outcome Achieved
$580K annual savings on cardiac catheter procurement, 42% reduction in inventory carrying costs, standardized protocols improving patient outcomes, complete traceability for device tracking and patient safety, and a strategic supplier partnership with enhanced support and innovation access.