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Healthcare company finds cure for office supplies and saves $400,000

Three-year contract with existing vendor is better than GPO pricing

An acute care regional hospital network with more than $200 million in annual revenue asked Expense Reduction Analysts (ERA) to evaluate its existing Group Purchasing Organization (GPO) agreement. The network wanted to know if it was possible to further reduce office supply expenses.

ERA's cost reduction experts studied supplier invoices, existing contracts and the client's GPO pricing. Using proprietary benchmark data, the consultants were able to compare the client's expenses to industry pricing. ERA determined
Project Information
  • Category - Office Supplies
  • Annual Spend - $370,000
  • Annual Cost Savings - 33%
  • Savings over three-year contract - $400,000
the client would benefit from bidding its contract and the consultants prepared a detailed Request for Proposals (RFP).

Based on information provided through the RFP process, ERA re-negotiated a contract with the current supplier with prices that were more competitive than the GPO rates. The healthcare network saved $400,000 over three years.
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