Strategic Supply Sourcing Solution

Strategic Supply Sourcing Solution

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Founded in 2009, our client was determined to lead innovation in healthcare supply chains. However, their existing system faced significant challenges, including inaccurate data and duplicate medical items, which impacted procurement efficiency and operational performance. With a dedicated team of 67 experts, LARION has been working on the project for over 15 years, delivering robust strategic sourcing solutions and driving continuous improvements to ensure data accuracy, streamline procurement workflows, and strengthen overall supply chain operations.

Challenge: Overcoming Procurement Inefficiencies

Handling thousands of healthcare item master files, the client’s current system encountered multiple challenges, including outdated catalog information, discontinued items that were not removed, inaccurate codes and descriptions, and duplicate listings of the same item under different names. These issues led to inefficiencies in procurement, higher operational costs, and increased risks of ordering errors, ultimately impacting overall productivity and service quality.

To address these issues, the client sought a skilled development team to build an advanced supply-sourcing solution with real-time updates, ensuring reliable data. With expertise in healthcare, LARION was entrusted to create a solution that streamlined procurement and reduced operational risks.

Solution: Smarter Supply-Sourcing Platform

Operating under a Time and Materials (T&M) model, LARION has been working on the project for over 15 years. Our dedicated team of 67 professionals—including developers, quality controllers, business analysts, DevOps engineers, project managers, Scrum Masters, data technicians and analysts, product support analysts, medical analysts, and operations engineers—collaborates seamlessly to ensure project success.

We leverage a modern tech stack featuring Ruby on Rails, a Data Discernment Engine, Ext JS, PostgreSQL, Apache 2, Phusion Passenger, Amazon Cloud, React Native, and Golang. The team is internally managed using Agile Scrum methodology, including Sprint Planning, Daily Scrums, Sprint Reviews, and Sprint Retrospectives, while maintaining transparency through weekly meetings and comprehensive monthly reports.

The cloud-based solution, enhanced with a Virtual Item Master, AI engine, and formulary procurement control, provides a standard catalogue featuring over 2 million normalized and fully attributed items with the following capabilities:

  • A sophisticated search engine that allows for the definition of functional equivalency by product family.
  • Items identified through pictures, aliases, and unlimited attributes.
  • Readily identified functionally similar products for easy product group and item comparison
  • Recommended lower-cost alternatives at the point of requisition.
  • Seamless integration with ERP, MMIS, and contracts for easier supplier comparison and better control of spending.
  • Clear visibility into historical purchasing activities.
  • Identification of inconsistencies, missing information, and duplication of healthcare products.

Result: Enhancing Supply Chain Efficiency and User Experience

The results of the implemented solution have been outstanding. Over 34,706 users have subscribed to the platform, benefitting from significant savings of up to 15% on their annual supply chain spend. In addition to cost savings, the platform has greatly enhanced procurement efficiency, streamlining processes and reducing operational friction. This has led to improved customer satisfaction, as users experience faster, more accurate procurement workflows and better overall service quality.

”Both organizations take responsibility for each other’s success. This did not happen overnight. It’s the result of establishing a deep level of trust and respect for the commitment, integrity and skills that each party has to offer’’

The client’s CEO

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