Building effective supplier relationships to reduce

costs and increase procurement capabilities

Stakeholder Relationships

3rd Annual Health Procure Conference – Nov 2016

Renee Hodge- National Procurement Manager

• Largest DI network in Australia with

20+% market share

• 240 radiologists and 186 clinics

across six states

• Provider of choice for hospitals,

Specialists, GPs and Allied Health

Professionals

• National contracts (e.g. Australian

Defence Force)

• State-of-the-art equipment and

advanced IT infrastructure

• Largest and most sophisticated

teleradiology service in Australia

• Network efficiencies in operations,

procurement and capex management

NT

6 clinics

QLD

27 clinics

SA

23 clinics

NSW and ACT

38 clinics

TAS

18 clinics

VIC

74 clinics

Largest Australian provider of Diagnostic

Imaging(DI) services with genuine

competitive advantages

WA

Extensive geographic footprint2

Leading market position1

I-MED16%

Sonic11%

Primary9%

Integral5%Capitol

4%

Public hospitals15-20%

Other35-40%

Procurement’s

role is

strategic in

developing

business

decisions

Stakeholders are people who will be

directly impacted by a business decision

Collaboration

with

stakeholders

ensures the

business

achieves the

best outcomes

Stakeholders are both internal and external

to your business

Suppliers

Customers

Competition

GovernmentEmployees

Owners

Contractors

Internal

Stakeholders

External

Stakeholders

Understanding

We involve stakeholders in developing

business decisions … why?

Stakeholder buy-in

supports the

business decision

and ultimately

influences the

success of the

project through the

business

Stakeholders

share their

experience and

you gain

Knowledge

Ideas

Stakeholders have invaluable experience!

Successful outcomes are gained through

effective stakeholder interactionSt

akeh

old

erin

flu

ence

High

Low

Very influentialbut their goals may not be in line with the

project

Key PlayerTheir

engagement is critical in the

process

Minimal engagement

required

Important for the success of the

project but minimal

influence

Low---------------------------------High

Stakeholder Interest

High Influence/ High Interest

High Influence/ Low Interest

Low Influence/High Interest

Low influence/ Low Interest

Stakeholder Matrix

Success comes with effective stakeholder

engagement

ENGAGE identify the right stakeholders

COLLABORATE work together to achieve both operational and financial goals

CORRELATION there is a link between engagement and financial outcomes/success of the project

WIN / WIN

Choosing the right supplier is key to the

ongoing success of any decision

How do I choose the right supplier?

Is supplier engagement critical from inception or

can we work on it?

Building a supplier relationships can

ensure a win / win result

• Supplier performance reviews

• Invite 360°feedback

• Regular communication

• Collaborate with the supplier to resolve issues

• Set clear expectations

• Treat the supplier as a valuable asset

Leverage supplier capabilities to achieve

the desired outcomes

Strong link with Suppliers

Financial Benefits

• Suppliers are the experts in their area; use

their expertise to improve processes

• Leverage your operational knowledge

• Encourage interaction between preferred

suppliers

Strategic partnerships with suppliers are

critical to delivering strong outcomes

Customer

• Executives

• Management

• Operations

Supplier

• Executives

• Management

• Operations

Multi tiered engagement model Set up regular meetings at

all levels of the

organisations

Ensure communication

with all stakeholders

continues throughout the

arrangement

Provide the suppliers an

opportunity to

demonstrate what is

happening in their

business

Case Study #1: Price reduction/ supplier

engagement

CONSOLIDATION TO ONE

SUPPLIER

DEEPER SUPPLIER

ENGAGEMENT

COST SAVINGS THROUGH DEMAND

MANAGEMENT

TODAYS SPEND IS LESS THAN

25% OF PREVIOUS

SPEND

Objective:

• Consolidate film spend and capital to one supplier for over 180

clinics around the Network

• Develop reporting requirements to ensure reduction of film usage

• Work on strengthening supplier relationship with commitments of

10% year on year reduction of spend

Case Study #2: Stakeholder engagement

Objective:

To review and determine uniform requirements for the business.

Taking into account

• Over 3,500 staff around the country requiring new uniforms

• 3 different brands

• 2 types of employees

Identify Key Stakeholders

Define requirements

Go to Market ShortlistStakeholder meetings –

internal/external

Appoint preferred supplier

Outcome:

• Cost savings with the appointment of the new uniform supplier

• Brand consistency as well as implementation of a style guide

• Staff engagement increased due to staff involvement

• Superior quality uniforms

• Supplier engagement

Thank you