Optimized Supply Chain Reducing Costs by 34% for Health Network

Atlas Healthcare Alliance, a network of 22 facilities across 5 states, had no centralized procurement function. Each facility independently sourced supplies from different vendors at varying price points. This fragmentation resulted in $12M in annual overspend, frequent stockouts of critical supplies, and zero leverage in vendor negotiations.

We established a centralized procurement office and implemented a strategic sourcing methodology. Our team consolidated the vendor base from 340+ suppliers to 120 preferred partners, negotiated multi-year volume contracts with tiered pricing, deployed demand forecasting algorithms based on historical usage and seasonal patterns, implemented a just-in-time inventory system reducing warehouse costs, and created a vendor scorecard system for ongoing performance management.

Atlas achieved a 34% reduction in procurement costs within the first year, translating to $4.1M in savings. Delivery speed improved by 40%, stockout incidents dropped by 87%, and the centralized model provided full visibility into spend across all 22 facilities.