LTC operators are losing thousands due to poor supply chain strategy
Learn the key differences between purchasing and procurement
If you’re running a relatively small facility, it’s easy to fall into the same lazy habits. Instead of hiring an individual or department dedicated to purchasing, you stock supplies on the fly. Run out of towels, tissues or wipes? You make a quick trip to the grocery. Short on bandages, gloves or syringes? You send someone down to the local supplier.
“In other words, purchasing is a simple transaction that is performed when something is needed with little thought given to product selection,” says Michael Wilson, Vice President of Marketing and Packaging at AFFLINK.
“Procurement is far more comprehensive.”
While not uncommon, this ‘shop on the spot’ practice is hurting your facility in numerous ways. And while it may seem to have minimal impact on residents, lack of supply chain management strategy means quality and value are sacrificed to speed. Administrators worry about ‘getting it now’ rather than about getting the right products at the right price.
The Bottom Line
Without an effective purchasing program, operators miss out on lucrative long-term incentives. “Procurement strategy is an ongoing program,” Wilson advises. “An astute distributor [helps] care facility administrators streamline purchasing, stay up to date on goods, optimize supplier relationships, and lower supply chain costs.”
Hiring a procurement officer may enable your facility to thrive in today’s competitive long-term care market. With more thorough vendor research, stronger negotiation and quality checks in place, your preparedness, and profit, are bound to soar.