If you can't measure it, you can't improve it.

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"If you can't measure it, you can't improve it."
                                                                                          —Peter Drucker

No one would shop at a grocery store that didn't post its prices, blindly filling a cart with no idea of actual costs until checkout. Yet that's precisely how many medical practices purchase supplies every week.

The COVID-19 pandemic, as well as more recent world events, exposed supply chain vulnerabilities across healthcare. But for many non-acute care providers, the underlying problem existed long before: zero visibility into what they're buying, from whom, and at what price.

One recent client discovered they were purchasing 966 different items from 18 suppliers, with no system to track pricing, enforce contracts, or ensure staff selected the most cost-efficient vendors.

The result? Dollars lost to preventable errors that no one could see.

When Procurement Runs on Memory, Money Walks Out the Door

Large retailers and hospitals treat procurement as a strategic advantage. They work diligently on sourcing, pre-select alternative products, and build pricing controls into every purchase.

But in most non-acute practices? Purchasing happens based on:

  • Navigating multiple vendor websites and catalogs
  • Phone calls and emails to check pricing and availability
  • Individual staff relationships with sales reps
  • "This is how we've always done it"

With 966 items from 18 suppliers, how could anyone be expected to remember which vendor offers the best price? If the same item is available from multiple sources but significantly cheaper from one supplier, who ensures the most cost-efficient vendor is selected?

 The answer: No one.

Your GPO Membership and the “Today’s Price” Problem

Nearly every healthcare provider belongs to at least one GPO. But most can’t answer these questions:

  • How many items that you purchase are actually tied to a GPO contract?
  • What is the contracted price for each of those items?
  • Which items aren't on contract but should be?
  • Are your invoices reflecting the correct contracted pricing?

Major GPOs offer thousands of contracts representing hundreds of thousands of items. That's humanly impossible to track manually.

When you don’t purchase from the correct vendor under the correct GPO contract, you're likely paying "today's price"—whatever your supplier decides to charge when you order. It’s almost impossible to know what you should be paying, audit vendor invoices for accuracy, or catch errors before they hit your P&L.

The $201,000 Question: What Are You Leaving on the Table?

One SmartPO client (a member of a major GPO) was spending $721,000 annually on supplies purchased through Amazon.

With SmartPO's visibility, they discovered these same items were available through their GPO's US Foods® contracts. By routing orders through the contracted supplier, they cut their spend to $520,000, a 28% savings of $201,000 annually.

They didn't change products. They simply gained visibility into what they already had access to.

How much could you be saving?

One Client's Story

 

Annual spend on supplies purchased through Amazon: $721,000

 

Annual spend on the same supplies when purchased through their GPO's contracted supplier: $520,000

 

Annual savings: $201,000, or 28%

Three Questions Every Provider Should Answer

Organizations with procurement control can instantly answer:

  1. What are we buying?
  2. Who are we buying it from?
  3. What price should we and do we pay?

If you can't answer these questions confidently right now, you can't control costs or make improvements.

Peter Drucker was right: You must measure it before you can improve it.

Automation Removes the Burden

An automated purchase-to-pay system transforms procurement from guesswork into a controlled, measurable process. It enforces preferred vendors and contracted pricing, guiding staff to correct decisions, all while maintaining a complete, searchable purchasing history.

Most importantly: It frees your staff to focus on patient care, not on tracking hundreds of products, prices, and vendor contracts.

SmartPO: Built for Non-Acute Healthcare Providers Like You

SmartPO is the automation that transforms procurement, and it’s been purpose-built for non-acute care providers since 2006. It directly addresses each of the problems outlined above: 

  • One platform for all vendors. Instead of navigating multiple websites, catalogs, and phone calls, SmartPO gives your staff a single screen to order from all vendors simultaneously, with items pre-loaded from your approved product list. One-time special order products are easily processed with proper permissions.
  • GPO and contract pricing, automatically enforced. SmartPO applies your GPO and negotiated pricing, flags better purchase options when available, and ensures staff can only order from preferred vendors at correct prices, eliminating rogue spending before it happens.
  • Inventory accuracy, without the manual work. When received items don’t match the original purchase order, SmartPO automatically flags the discrepancy so it must be resolved before payment.
  • Real-time spend visibility. SmartPO’s reporting and analytics show exactly what you’re buying, from whom, and at what price, giving you the data to measure, manage, and continuously improve procurement performance. 

We understand you likely don’t have a materials manager or supply chain team, so we handle the heavy lifting. We configure the system, load your vendors, items, contracts, and pricing, and get you up and running quickly. Our ongoing support ensures you continue optimizing procurement over time. 

Supply chains are inherently vulnerable without proper visibility and controls. Strengthen yours now with SmartPO.