Consolidation sequence
- First wave: Cleaning and janitorial supplies.
- Clinical review is required before any clinical category moves.
Financial Intelligence
Costs and optimisation
Spend grows across suppliers, licences, cloud services and people with no single place to see what is wasted.
Demonstration: Halden Hospitals Group (fictional) · Healthcare. Fictional data and a scripted answer.
The situation
- Organisation
- Halden Hospitals Group (fictional)
- Who is asking
- Director of procurement
- Industry
- Healthcare
- What happened
- The group buys similar supplies from many suppliers, and the board has asked for a vendor consolidation proposal.
The question asked
Which supplier categories should we consolidate first?
What it reads, and who can see the result
- Spend by supplier and category exportTwelve months, from accounts payable.
- Contract register registerEnd dates and exit terms.
- Clinical quality notes documentWhere quality limits switching.
- Reads
- Aggregated spend by category and supplier, contract end dates and exit terms, and quality notes.
- Does not read
- Patient data or individual clinicians' records.
- Permission
- Procurement read access.
- Who sees it
- Procurement, the CFO and clinical leads for affected categories.
Try it
Change how much each criterion matters. The ranking is recomputed, and the page tells you whether the leader would survive a different judgement.
- 1Cleaning and janitorial suppliesEleven suppliers, commodity items.Expected saving: 3Low disruption: 5Low contract exit cost: 4Low clinical-quality risk: 54.32
- 2Office and IT peripheralsMany small suppliers.Expected saving: 2Low disruption: 5Low contract exit cost: 5Low clinical-quality risk: 54.18
- 3Linen and laundryTwo main suppliers, contract ending.Expected saving: 4Low disruption: 4Low contract exit cost: 5Low clinical-quality risk: 44.14
- 4Surgical consumablesLargest spend; clinicians have preferences.Expected saving: 5Low disruption: 2Low contract exit cost: 3Low clinical-quality risk: 22.95
- 5Laboratory reagentsEquipment-linked contracts.Expected saving: 4Low disruption: 2Low contract exit cost: 1Low clinical-quality risk: 22.41
Leader's margin over the next option: 0.14. The leader holds under every weighting tested.
The answer
Simulated answer. Written for this fictional case, not produced by a live model. Only the figures in it are computed, from what you decided above.
The category to consolidate first, on these weights, is Cleaning and janitorial supplies.
Weighting clinical quality heavily moves the largest spend (surgical consumables) down the list, because the saving there is largest but so is the risk of switching [S1][S3]. Categories whose contracts are ending or whose items are commodity score better on exit cost and disruption [S2].
The leader holds under holds weightings; it would change if none of the tested weightings. The margin over second place is 0.14.
Relies on: S1 · Spend by category, 12 monthsS2 · Contract registerS3 · Clinical quality notes
Review and approval
The director of procurement with the clinical lead decides. Approving the order starts sourcing events in the categories ranked first. It does not terminate a contract or change a supplier.
Ready for the reviewer.
In the product this is a different person with the right permission. Here you play that role to see the rule.
What it produces
Contract decision calendar
- Each category lists its contract end date and notice period, taken from the register.
Limits of this example
- Expected saving is an illustrative score, not a quote; a sourcing event would produce real prices.
- Clinical quality weighting is a policy choice for clinicians, not for finance alone.
- This is a scripted demonstration on fictional data. No model was called and no real organisation, person or result is shown.
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