Sunday, 30 April 2017

Product Sourcing Strategy

Finding, choosing, financing and purchasing the right products for your Medical Laboratory is the most vital rung in the ladder to success when starting and managing a medical laboratory in Jamaica. The products utilized to start a medical lab should be tailored in such a way to meet the needs and affordability of patients who desire diagnostic services. When an individual wants to make an investment in the form of starting a Physician-Office lab or Independent Reference lab, he/she should know that this is a decision and business venture that should be well thought through and analyzed financially. Getting the best financial advice is pivotal especially in the process of product selection, sourcing and purchasing. This is the use of supply chain financial engineering in the implementation of effective product sourcing strategy.

Purchasing Management is one of the primary elements of Total Quality Management and should be approached with great consideration and critical thinking. Weighing the options when purchasing a product for the medical laboratory is very important to its future success and profit margins. A major step in the procedure of product procurement is supplier selection. Strategic sourcing and Supply chain management are on the front burner in order to get the ideal product into the inventory of the medical lab. Gav-Med Solutions endeavors to make Jamaica a better place for the starting and managing of Medical Laboratories. We are a team of medical laboratory professionals dedicated to helping health professionals to locate and source the right products that are tailored to their needs, specifications, affordability and products that solve their problems.



Your approach to supply chain management should formalize the way information is gathered and used to the advantage of a medical laboratory so that the institution can leverage its consolidated purchasing power to find the best possible values in the Jamaican diagnostic marketplace. There should be an analysis of what the organization buys, from whom, at what price and at what volume. Strategic sourcing management of medical laboratories differs from conventional purchasing habits because there is a lot of emphasis placed on the the entire life-cycle of the medical laboratory product. Medical Laboratories in Jamaica are looking hard at product sourcing strategies to get the most for their money and meet increasing business, sales, financial and economic demands. This notion is especially true for labs that are reliable on the skills of their suppliers. The intention is to locate opportunities to source products in a selective fashion in ways that allow you to strike the right balance between increasing performance and reducing costs. Selective sourcing to meet the demands of medical labs in Jamaica is a powerful option that a Medical Laboratory scientist should not ignore. The benefit of this sourcing option is its ability to transfer ownership to the medical lab, allowing a company to own the knowledge, pricing and decision-making. The favorite strategy for sourcing vendors is one which does not fully disclose the cost information and profit margins.


Gav-Med Solutions helps medical laboratories to revisit their strategic sourcing contracts and work closely with their suppliers to analyze current spending and achieve maximum cost reductions. Modern supply chain management professionals have placed emphasis on defining the distinct differences between strategic sourcing and procurement management of medical laboratories. Procurement operations support tactical day-to-day transactions of Medical laboratories such as issuing purchase orders to suppliers, where as strategic sourcing represents strategic planning of labs, supplier development, contract negotiation, supply chain infrastructure and outsourcing models.

The steps in the strategic sourcing for medical laboratories are:

  • Assessment of a medical laboratory's current spending (what is bought, where, at what prices?)
  • Assessment of the supply market (who offers what?)
  • Total cost analyses (how much does it cost to provide those products or services?)
  • Identification of suitable suppliers
  • Development of a sourcing strategy (where to purchase, considering demand and supply situations, while minimizing risk and costs)
  • Negotiation with suppliers (products, service levels, prices, geographical coverage, payment terms, etc.)
  • Implementation of new supply structure 
  • Track results and restart assessment 
The slimmed down process for Medical laboratory product sourcing is:

  • Data collection and Spend analysis
  • Market Research
  • The "go-to-market" process (RFx)
  • Negotiations
  • Contracting
  • Implementation and continuous improvement
Operations research of medical labs in Jamaica is a discipline of applying advanced methodologies to make rational decisions. Optimization, in turn, utilizes mathematical algorithms to rapidly solve a business problem by evaluating all possible outcomes and selecting those ones that yield the best solution. When applied to product sourcing strategy of medical laboratories and supply chain operations, optimization helps the sourcing professionals simultaneously evaluate thousands of different procurement inputs. The evaluation can take into consideration the Jamaican diagnostic market, specific and current supply chain conditions, and individual supplier conditions and options then offer alternatives to address the buyer's product sourcing goals. Cooperative sourcing of Jamaican medical labs is a collaboration or negotiation of different companies which have similar business processes and in order to save costs, the competitor with the best production function can insource the business process of the other competitors. Business relationships where more than one party needs to work with another party to be successful are the systems based approach to structure supplier relationships utilized by Medical Laboratories in Jamaica.

If your Medical Laboratory has difficulties with sourcing products in Jamaica please email us: gavmedsolutions@gmail.com or call 18765685178. Visit our website for more information:  http://gavmedsolutions.com/

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