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Data Collection and Item Master Set-up Best Practices

“We’ve loaded the exact products and vendors we want our centers to buy from, ensuring we get the right products at the best prices. I keep control over spend and can reduce costs.”

Rami Nofal, Touchstone Imaging 

Align your purchasing processes to flow through a single system

Bring more of your spend under management

Eliminate duplicative systems and processes, and gain better control

Step 1: Set your goal: one solution for all procure-through-payment processes

???? Once you’ve identified the right system to support your materials management processes, you can begin planning and preparation

– A single system with a robust item master containing all vendors, items and purchases, and facilitating a single enterprise-wide process, will eliminate one-offs, off-contract spending and rogue purchasing

Step 2: Pull the data needed to create your purchasing history

???? If you’re able to pull purchasing data, the last 18 months of purchases will provide a solid baseline of vendors and regularly ordered items needed to create your new item master

???? No PO history? Your primary group purchasing organization (GPO) might be able to help

– Starting with clean, neutralized and complete data is critical. Check if your GPO can provide this data collection service

???? If you elect to take this journey yourself, start with your primary vendors, especially the distributor from which you receive the majority of your supplies

???? If you don’t have a realistic way to create your PO history, start by printing out all vendors from your accounting system

– Contact the vendors directly to request a 12 month history file and from there, a PO history can be assembled

Step 3: Build toward supply chain control, with control over every transaction

???? Create a process where every purchase goes through your materials management system

???? Create a purchase order for every purchase; route every purchase for approval

???? Redirect buyers away from purchasing through individual vendor websites

???? Be on the watch for invoices that get paid without validation of receiving the supplies

Step 4: Set a benchmark for the percentage of items you need in your system at go-live

???? You might not have 100%, but determine what will work for your organization

– Will the 80/20 rule work? Identify the items purchased and consumed at the highest rate

⋅ If you’re planning to track inventory usage, you’ll need a higher percentage of the items you purchase (as close to 100% as possible)

⋅ If you’re using your new system for procurement only, you may be able to target a lower number – be sure to cover at least 85% of the items you order

– Make sure you’ve got the correct item descriptions and pricing when you go-live

See Envi® in action

See how Healthcare’s Smarter Supply Chain®  can transform your procurement process.