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Optimising healthcare sourcing strategies - outsourcing and shared services

Organisations in all areas of the healthcare sector are looking to new sourcing arrangements – such as outsourcing, offshoring and shared services.

A range of sourcing approaches that are already established in manufacturing areas are starting to be more widely adopted, and applied to services as well as manufacturing operations.

Companies need to optimise sourcing strategies in ways that reflect best practice and incorporate the latest innovations. They then need to sustain those strategies over time to ensure that both profitability and flexibility continue to be maximised, so that sourcing arrangements enhance business performance rather than degrade it. 

Our experience shows that several steps are necessary if companies are to be successful in their sourcing strategies.

Make sourcing a board-level issue - Sourcing should be a major enabler of business transformation. As such, it demands board-level attention.

Diagnose first - As in medicine, it is important to know exactly what the problem is before coming up with a prescription.

Manage for continued benefits delivery - Put in place the correct governance structures to manage the functions or processes, and ensure that the right competences are available to these organisations.

Be prepared to rethink sourcing arrangements radically - Businesses should continuously review their sourcing arrangements and, if they cannot be made to deliver what is required, be prepared to kill off or move a given arrangement.

See the ‘big picture’ - Rather than implementing one-off deals in disparate areas of the business,consider the overall value creation picture across the enterprise, and beyond.

PA has substantial experience in helping companies from across the healthcare spectrum with developing and implementing succesful sourcing strategies and solutions.

To discuss how PA can help improve your outsourcing or shared service arrangements, please contact us now.

Andrew Hooke
Life sciences
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