PROS best-kept secret success stories
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3
A competitive edge, slowly worn down
This organization watched margins dwindle as their
customers merged and grew.
With IDNs responsible for reducing supply costs through
negotiations and GPOs in charge of payment, procurement, and
outcomes, the IDNs' and GPOs' sole goal in doing business was
to utilize data in order to win the lowest costs for their customers.
These groups always had that right price at their fingertips, giving
them a significant edge over the medical devices supplier.
The company found that they were closing negotiations for
customer-priced, multiyear contracts that were incrementally less
and less in their favor. The GPOs and IDNs already used advanced
pricing, quoting, and contract management tools, whereas this
medical devices company did not. The sales team was spending
unprecedented amounts of time going back and forth in long
meetings to make decisions and work out customer prices manually
in Excel, and in even more meetings to gain pricing approval before
getting the quote out the door.
" This created an environment where it was
necessary to change the way we [were]
approaching our proposals, and we had a lot
of variability in our offerings. We needed data
and facts to inform our negotiations to remain
competitive in this marketplace," said the
company's Associate Director of Pricing.
In addition, the company thought it was important to modernize and
streamline workflows so they could serve patients better. In their mind,
increased operational efficiency and better deal negotiations meant
the delivery of safer treatments and products while being able to
remain competitive. Unfortunately, their current pricing system did not
allow them to grow and deliver profitability in the way they wanted.
They needed to streamline their pricing
and contract infrastructure to:
• Remain competitive
• Give customers the fast and personalized service
they expected
• Reduce revenue leakage
• Drive growth
How are we losing
margin every time?
I don't know,
I'm using the
most recent
prices from the
spreadsheet.
