Owens & Minor
Owens & Minor, the leading distributor of medical and surgical supplies to the acute-care market and a leading provider of healthcare supply-chain management solutions
Owens & Minor have an established Procurement team in the US market. Over the years several attempts have been made to develop an international Procurement team to cover 8-9 European countries. Both “in-house” and external consultancy options were tried. However due to fragmentation of the business and local business requirements, O&M were unsuccessful in setting up a team that could deliver the expected value or make significant impact. In-house approaches tended to ‘go native’ and service the region in which they were employed, and consultancy solutions only offered a cost effective solution for the largest spends, leaving much of the spend unaddressed.
- Within 3 months, the program delivered 5 times ROI.
- Within 12 months, there is a multi-million savings pipeline and 20 major Procurement projects completed.
- Flexible resource pool.
- Output based contract aligns Simfoni and O&M objectives and enables O&M to respond to changing business requirements.
- Mix of local and remote staff allow O&M to engage effectively with stakeholders while maintaining a good service level at a low cost – Simfoni’s Shared Service Centre in Dubai has a strong team with international experience.
“It has been a pleasure working with Simfoni and making tremendous progress with the roll-out of Global Procurement initiatives as well as achieving results for specific geographies on Transportation and Fleet. The flexible resource profile is helping us to engage where required and keep the focus on what is important. The technology solutions are guiding us on how to prioritise as well as track the performance. We look forward to achieving even bigger successes in the years to come.”
Director, Global Indirect Procurement
Simfoni started by deploying the Virtuosi™ Analytics App to gain spend visibility and identify procurement opportunities. The approach uncovered short-term savings opportunities in excess of £500,000, which Simfoni immediately addressed during a 3 months intensive program providing 5 times ROI.
O&M decided to expand the program to a multi-year engagement with Simfoni providing procurement technology and an small specialist sourcing team augmented by its shared services procurement centre. The program now spans 8 countries and delivers millions in savings from spend categories such as Transportation, Fleet, Facilities Management, IT, Professional Services, and MRO.
Key to the success has been easy to deploy technologies and flexible resources that can be turned on and off to engage across different geographies or categories of spend as required in order to continuously target the top opportunities for maximum impact.