Healthcare & Lifesciences · HLS-03

Optimising Procurement and Working Capital for a Multi-Facility Rehabilitation Hospital Network

Industry: Rehabilitation & Long-Term Care Hospitals
Services Provided: Strategic Sourcing | Procurement Cost Optimisation | Working Capital Improvement

Business challenge

A leading rehabilitation and long-term care hospital network operating across the United Arab Emirates and Saudi Arabia required a more competitive and structured approach to procuring pharmaceuticals and hospital consumables. With procurement supporting a geographically distributed healthcare network, management sought to optimise procurement and strengthen cash-flow management.

What we did

Reviewed the complete in-scope procurement portfolio covering pharmaceuticals and hospital consumables, analysing products, existing suppliers, pricing and commercial terms.
Conducted a structured supplier search and market-benchmarking exercise to identify competitive and dependable alternative sources across the required product portfolio.
Benchmarked supplier quotations at product level and led commercial negotiations to establish more competitive procurement prices.
Evaluated suppliers across multiple commercial and operational parameters, including price, credit terms, supply capability and overall sourcing suitability, rather than selecting vendors on price alone.
Negotiated improved supplier credit terms to reduce immediate cash outflows and strengthen the organisation's working-capital position.
Rationalised the vendor base by consolidating procurement with commercially competitive and reliable suppliers while maintaining adequate sourcing coverage.
Established a structured sourcing and vendor-selection framework that enabled procurement decisions to consider both purchase-cost savings and working-capital impact.

Wide view across a multi-facility hospital with clinical teams, patient-service areas and supporting operations.

Measurable results

100% of in-scope products commercially benchmarked

Supplier options and commercial terms were evaluated and negotiated across the complete portfolio of pharmaceuticals and hospital consumables covered under the engagement.

20% reduction in procurement cost

Strategic sourcing, competitive price benchmarking and supplier negotiations delivered a measurable reduction in the purchase cost of pharmaceuticals and hospital consumables.

15-day improvement in supplier credit terms

Negotiation of enhanced payment and credit terms increased the average supplier-credit period, reducing immediate cash outflows and strengthening the client's working-capital position.

15% reduction in vendor base

Vendor rationalisation consolidated procurement with competitive and dependable suppliers, reducing supplier fragmentation while maintaining sourcing coverage across required products.

Dual P&L and cash-flow impact

The engagement simultaneously improved purchase price and supplier credit period, creating value at the P&L level through lower procurement cost and at the balance-sheet level through reduced immediate cash outflow and an improved working-capital cycle.