Johns Hopkins Health System via Nobilant

$444 million in spend sourced across 106 projects resulted in $82 million savings

Summary

For over a decade, Johns Hopkins has partnered with Conductiv via Nobilant to source more than $444 million in spend across 106 projects saving over $82 million in purchased services, medical-supplies, commodities, capital and construction and physician preference items. In purchased services alone, Johns Hopkins has processed $94 million in spend saving $13.3 million across 14 projects.

Sourcing challenges that the supply chain faced:

Speed & Efficiencies:
Reduce sourcing project cycle-time by reducing administrative tasks such as multiple in-person and e-mail communications.
Staff Augmentation:
Conduct more competitive bids with their limited staff and higher savings targets.
Expertise:
Gain expertise in infrequently sourced categories which their limited size sourcing team did not have in-house.
New Facility Sourcing:
Source capital equipment required for a 550 bed critical care and children’s tower on top of their existing workload.

Partnering with Conductiv

In a pilot project with Conductiv for specialty bed rental services, Johns Hopkins saved an unexpected $560,000 from the project.

Beyond the savings, Johns Hopkins maintained complete control and had the freedom to manage contracts and implement new contracts while Conductiv did the most difficult and time-consuming tasks of sourcing.

"We all felt very supported and secure that the patients’ best interests were at heart in a complicated and expensive contract,” said a wound care nurse in the JHHS Department of Medicine, after a bid. “Within two hours, the whole thing was done."

Johns Hopkins found that the Conductiv Platform eliminated the long, drawn-out process of paper-based negotiations and accelerated the process significantly by conducting a live, moderated negotiation where stakeholders and supply chain could participate and work directly with vendors in real-time to obtain the best value. Conductiv’s unique negotiation process generates a level of competition that isn’t typically found through traditional negotiation methods. This process drives cost down while simultaneously ensuring stakeholder’s unique needs are met while improving the existing service levels for each facility.

Outcomes

Since 2008, Conductiv has partnered with Johns Hopkins to help them source more than $444 million in spend across 106 projects saving over $82 million through Conductiv’s unique blend of services, technology and market intelligence.

By supporting all the heavy lifting in their sourcing projects, Conductiv freed up the Hopkins’ Supply Chain team to focus on category and contract management, vendor relationships, and stakeholder support.

About Johns Hopkins Medical Center

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