With hospitals, care homes and dental practices all facing difficult economic conditions, those tasked with procuring items have a chance to deliver additional value
In the dynamic world of UK healthcare, procurement professionals have a unique opportunity to drive significant positive change. By embracing smarter purchasing strategies, hospitals, care homes, and dental practices can unlock new levels of efficiency, support their workforces, and ultimately enhance patient care. This is a moment for innovation, where strategic procurement becomes a powerful engine for value and growth through digital purchasing solutions like those offered by Amazon Business.
For those tasked with procuring for healthcare organisations, however, this represents an opportunity to demonstrate just how much value they can bring to the business. More efficient purchasing can ensure both security of supply and value for money, ensuring organisations have what they need at the right time and can channel resources – in the form of both time and money – into treating patients or residents.
A significant area ripe for improvement lies in non-core spending categories and basic healthcare items. This includes everything from furniture, IT equipment, and stationery in hospitals to TVs, books, and crockery or board games in care homes. While individual purchases may seem small, they accumulate into substantial sums over time, especially across multiple facilities.
Traditionally, these items have been bought by various staff members like managers, receptionists or care staff, often using their own funds which are then claimed back on expenses or a company credit. This decentralised approach offered little opportunity for price comparison or supplier vetting. It also created challenges for accounting teams and left managers without a clear picture of overall spending patterns. Without this crucial insight, identifying areas for savings or strategic adjustments was nearly impossible.
It also makes it difficult for organisations to keep track of who is spending what. This can cause issues for accounts teams who have to reconcile – and reimburse – payments, but it also means managers do not have information on just what they are buying and why. Having such insight could mean they are able to identify areas where spend can be reduced or even avoided entirely.
In recent years, though, the rise of digital marketplaces has helped organisations get to grip with such spend. Amazon Business, for instance, provides a single place through which approved users can purchase items, within pre-agreed parameters, choosing from a wide range of suppliers which offer items at competitive prices. More than one in three businesses plan to increase their use of online marketplaces over the next five years, according to Amazon Business’ Redefining the Future of Procurement report.
Organisations can mandate which suppliers are put forward, allowing them to prioritise those which have certain sustainability credentials, for instance, or businesses from the local area, and track progress towards achieving targets over time. This also allows businesses to reduce the number of suppliers they use; something 36% are looking to do, according to the Redefining the Future of Procurement report.
For those in accounts, every purchase is recorded and paid for directly through a business account, either as a card payment or through a monthly invoice. It provides a clear audit trail, as well as ensuring spend limits are agreed to. This, in turn, can reduce maverick spend, where staff make purchases off their own back without authorisation and expect to be refunded.
Organisations can track just what they have spent and on what, allowing for further analysis. Amazon Business can also integrate with existing e-procurement systems, ensuring visibility for procurement teams at a head office.
One business that has is seen the benefits of moving to a digital marketplace is HCRG Group, one of the largest commissioned providers of healthcare to the NHS.
The organization previously managed a complex network of over 2,000 suppliers, often for low-value items. This created inefficiencies for the 400 professionals responsible for purchasing, who spent valuable time searching for products.
By transitioning to Amazon Business, HCRG Care Group consolidated its supplier base and gave staff a single, familiar platform to buy what they needed. "It reduces fraud risk, admin time and cost,” explains Alex Blatherwick, Head of Procurement at HCRG Care Group. “We wanted to capture the tail spend and create efficiencies.”
This has freed up time for staff that can now be used for other purposes. “The less time they’re spending trying to obtain goods, the more time they can spend with patients,” says Blatherwick.
The procurement team has also been empowered. “The efficiency savings we have made by consolidating our supplier list using Amazon Business means that we have more time within the procurement team to spend on projects, tenders and strategy,” he adds. “By reducing our supply base we have simplified our processes, lowered cybersecurity risks and can more easily abide by NHS standards.”
To find out more about how Amazon Business could help your healthcare business gain control over its spending, visit our website.