Harmony Cares

Creative and Targeted Sourcing Support Adds $1.7M in EBITDA for Healthcare Firm

Inside Consulting brought a fresh perspective, pushing us to rethink our routines and uncover solutions that were both cost-effective and innovative. Their approach drove tangible results, saving us close to $2 million.</p> <p>Their team worked seamlessly with our staff at all levels, ensuring the solutions were not just theoretical but practical and implementable- Zack Mulligan, HarmonyCares CFO

Situation:

  • Following a corporate divestiture, the company transitioned from its much larger parent organization and has since operated independently. However, due to legacy vendor agreements inherited from the former corporation, the company remained reliant on long-standing third-party relationships, several of which were inadequate for the current company. This dependence on legacy vendors created challenges in efficiency and scalability, hindering their ability to fully optimize processes within the new organizational structure.
  • Several categories needed a strategic refresh to better match current and future needs with updated requirements. This presented an opportunity to recalibrate the company’s selection of partners to ensure optimal alignment with business objectives and enhance overall value.

Insights and actions:

  • We employed a range of sourcing strategies including direct negotiations, multi-round tenders, a live-bidding event, and reviewing actual specification requirements.
  • Conducted a series of workshops with internal teams and key vendors to identify instances of over-specified requirements. This approach ensured alignment with actual needs and reduced unnecessary costs.

Impact:  

  • Outside spend reduced by $1.7 million/year which was a 39% savings off addressable spend.
  • Drafted and introduced new corporate policies to strengthen organizational standards and compliance while reducing cost.
  • Redesigned company mailers to enhance brand visibility and improve customer engagement.
  • Achieved customized pricing within a commoditized industry to increase competitiveness and better meet client needs.