Ivalua: driving efficiency and compliance within medical care
Laeral Medical, a global corporation that provides training, education and therapy products for lifesaving and emergency medical care, will leverage Ivalua’s Sourcing, Contract Management and Analytics within its direct and indirect procurement operations across the organisation. As a result of the implementation, the software will increase efficiency, reduce manual work and help manage procurement growth.
“We are delighted to welcome Laerdal Medical as a new customer. Our strong partnership with OJC allows us to successfully deploy digital transformation projects that deliver tangible benefits to our customers quickly, whilst maintaining the flexibility to adjust to future requirements. This allows us to make a lasting difference, setting us apart as the industry’s front-runners,” comments Stephen Cleminson, Alliances Director at Ivalua.
What does this mean for Laerdal Medical?
Laerdal Medical will benefit from a single global suite that will support and standardise its sourcing and procurement operations across all spend categories. “Our current manual processes are not scalable with our continued growth, we need a procurement system that can support us now and grow with us in the future,” explains Ms Ane H. Eliassen, Procurement Manager at Laerdal.
In addition, Laerdal Medical will benefit from increased transparency, track supplier performance and certifications. “Ivalua will enable us to better track the compliance of our suppliers and our organisation, which is extremely valuable to us as we are operating in the medical field which is a highly regulated industry,” continues Eliassen.
The growth Laerdal Medical is currently experiencing can be a challenge. This challenge needs carefully designed processes that are adopted throughout the business. “The streamlined and collaborative features of Ivalua help support those processes and bring maximum efficiency to all actors” Olivier Julian, CEO at OJC Consulting.
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Will Public Procurement Budgets Increase in 2021?
Procurement is more than just a private enterprise. COVID-19 reminded us that sourcing materials is an essential part of the government’s role. Throughout 2022, tiny departments sourced massive amounts of personal protective equipment (PPE), medical supplies, and emergency vaccines and testing kits. Even non-procurement professionals were pulled into the fray, as frantic timelines demanded nothing less.
According to Celeste Frye, co-founder and CEO of Public Works Partners, the crisis brought procurement to the attention of skilled employees who had never considered it. As non-procurement personnel stepped up to help their coworkers, many found that they’d stumbled upon a critical and rewarding job. “Existing public employees have seen the essential nature of the work”, Frye said. “[They’ve] gained some critical skills and possibly [grown] interested in pursuing procurement as a longer-term career”.
Small, Local Suppliers Take Charge
Frye, whose firm helps organisations engage stakeholders and develop long-term procurement strategies, thinks it well worth the effort to open one’s mind to new opportunities. Cooperative contracts, for instance, can help public departments and municipalities save money, time, and effort. By joining together with other towns or cities in the region, public procurement teams aggregate their purchasing power and can drive better deals.
These cooperative contracts have the added benefit of advancing equity. Smaller suppliers that struggle to compete with established firms for government contracts can act as subcontractors, helping big suppliers fulfil bits of the project. Once they get their foot in the door, small, local, and disadvantaged suppliers can then leverage that government relationship to take on additional projects.
Especially as governments start to pay attention to procurement resilience, public procurement departments must expand their requests for proposals (RFPs) to take into account innovative solutions and diverse suppliers. According to Frye, Public Works Partners—a certified female-owned firm—has benefitted from local and state requirements that specify diversity.
Post-Pandemic Funding Swells Procurement Budgets
And the pandemic won’t be the end of it. City governments need to build sustainable energy infrastructure such as solar panels, charging stations, and recycling plants, ensure that masks and medicines are never in short supply, and source new technologies to keep up with cloud and cybersecurity concerns.
Public procurement budgets will likely increase to match demand. As Peter Ware, Partner and Head of Government at Browne Jacobson, explained, “in a non-pandemic world, the [U.K.] government spends on average around £290 billion on outsourced services, goods, and works...anywhere between 10% and 14% of Gross Domestic Product (GDP). Post-pandemic, city procurement will only increase as national governments provide local divisions with emergency funding.
And in truth, government employees might jump at the opportunity. Frye noted that public procurement could give immediate feedback on new programmes: “[Procurement] is where new laws and policies ‘hit the road’ and are implemented”, she said. “Professionals in these fields get the satisfaction of creating real change and seeing quantifiable outcomes of their work”.