A large midwestern IDN was able to identify their top 65 technology contracts within purchased services and noticed that central spend management of these contracts and subsequent renewals was dramatically lacking. Unfortunately, the license agreements were written poorly and did not clearly articulate the ownership in some cases, which made renewals disjointed and not cost-effective. Seprio was asked to identify contract owners, products, usage and ultimately negotiate and consolidate these renewals to obtain bottom line savings.
The Objective
Identify purchased services contract owners, products, and usage and negotiate and consolidate these renewals to obtain bottom line savings for a large healthcare IDN.
The Approach
Agreements were amended when necessary to reflect actual products / usage so that it was explicitly clear, in an attempt to avoid similar issues in the future.
The Result
More than $1,300,000 in savings has been negotiated through the first 22 agreements. Amendments mean each contract renewal moving forward will be much less time-consuming and costly for the purchasing staff.
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Seprio is a sourcing and vendor management consultancy; helping companies achieve the best savings and performance by buying products or services the right way from the right people.