Customer Supply Management Education Offered

Edition: September 1999 - Vol 7 Number 09
Article#: 475
Author: Lynn James Everard

Today's health care distributor is operating on lower profit margins than ever before -- the result of a combination of competition among suppliers and an insatiable appetite for lower product prices on the part of health care product purchasers. When hospitals and other health care organizations send out the directive to cut costs, the traditional purchaser often makes a beeline for tried and true sources of cost reductions; namely, product price reductions from suppliers. They have done this in the past because it worked. Those that continue to do it do so because it works. Product cost savings are the easiest to measure and prove.

Unfortunately, suppliers do not have an infinite source of profitability from which to draw to support these product pricing concessions. In fact, the well is drying up. This situation cannot and will not change unless and until institutional purchasers understand that the secret to their survival lies in how they manage their entire businesses and not in how much manufacturer and distributor profit margin they can confiscate.

Everard Consulting Services, Inc., an independent materials management consulting firm is presenting an opportunity to educate your customers about their total costs of supply management. This will show them that their best opportunity to reduce their own cost of doing business is through quantifying their process costs and reducing them as a part of supply chain relationships.

This educational initiative will be rolled out in key metropolitan areas in the form of seminars for health care institutional purchasers. The seminars will present attendees with a panoramic look at the challenges facing health care today, introduce them to process costs and how they can be measured, discuss various process cost reduction strategies, show how materials management can significantly contribute to the institution's bottom line, introduce the concept of reimbursement based procurement, and provide bonus information on materials management strategies for the IDN. These seminars will be developed and presented by Everard Consulting Services.

Everard Consulting Services, Inc. is a five year old health care management consulting firm specializing in Supply Chain Management, Materials Management, Activity Based Costing, and Activity Based Management. Lynn James Everard, the firm's founder and president, is a health care supply management expert with 18 years experience. He is one of only a small number of Certified Purchasing Managers (C.P.M.) in the health care field. He can be reached at (954) 422-9908 or by e-mail at