A key driver of Supply Chain performance optimization is the ability to maintain and enforce the use of contract terms and prices negotiated by sourcing owners. Hospitals pay an estimated 3-10% premium on the price of every item they purchase that is not identified with a sourcing contract. The result is a nearly 40% loss of the projected savings that were identified when the contract was negotiated. Best-in-class organizations achieve up to 80% more savings than others through a clearly defined contract compliance process. (Source: Aberdeen Research)
An integral part of the procurement process CommCARE Compliance maximizes savings by enforcing contract terms and pricing on each transaction. Ensuring that purchasers are buying from preferred sources and meeting vendor performance commitments, results in improved discounts and rebates. Too often the specific terms of the contract are disconnected from the procurement process where day-to-day purchasing decisions are made. CommCARE Compliance connects the relationship between the item, preferred vendor and contracted price, making it easy to realize cost savings during your everyday purchasing.
With CommCARE Compliance you have visibility into contract pricing at the point of the purchase decision, eliminating non-compliant purchase activity. In addition, by enforcing contract utilization you have assurance that each transaction is compliant with the terms and pricing of the contract; maximizing the savings that were negotiated.
But CommCARE Compliance goes beyond that by providing detailed rebate tracking and reconciliations.
Value and Benefits
|Contract Utilization||Our solution drives requestors to preferred sources of approved contract items through the use of the Marketplace. Visibility to contract information encourages use of contracts while ensuring that you maximize the price tiers, discounts and rebates negotiated with your vendors.|
|Transaction Level Enforcement||Each purchase is validated against contract specific pricing and terms. Daily exception reports keep your supply chain personnel informed about non-compliant activity, new contracting opportunities and key vendor performance indicators to build closer value relationships.|
|Contract Lifecycle Management||Manage the price expiry of contracted items, informing contract owners of re-negotiation dates and providing historical purchase volumes to facilitate negotiation with vendors. This keeps your staff on top of contract opportunities, optimizing savings and value.|
|Central Repository||Secure web portal access for all contract documents, performance commitments, discounts and rebates for the items you have contracted with your vendors, making it easy to manage all your preferred vendor relationships.|
|Performance Monitoring||Support decisions with dashboards, scorecards and reports to help optimize supply chain value and savings created. Project teams are notified on a daily basis of any non-compliant activity so any corrective action can be taken to eliminate off contract and maverick spend.|