The supply chain is no longer just a cost center; it’s a strategic lever that must stretch every dollar. For CFOs and supply chain leaders, the question is no longer, “How do we cut costs?” but rather, “How do we create value?” and every decision carries weight.
From “Rounding Error” to Revenue Opportunity
Historically, support services like procurement were often dismissed as “rounding errors”: small percentages of the overall hospital budget that are often overlooked in strategic planning. But in large health systems, even 3% of the budget can represent tens of millions of dollars. When managed strategically, that’s not a cost to contain, it’s capital to reinvest.
At TouchPoint Support Services, we treat every dollar as if it were our own. By managing funds effectively, we can return the savings to the hospital to provide greater care and reinvest in our services.
Reframing Procurement: Value Over Volume
The traditional procurement mindset – buying the cheapest product to meet a specification – is outdated. In healthcare, outcomes matter. The right disinfectant can prevent infections, the right food vendor can improve patient recovery, and the right supply chain partner can reduce waste, improve compliance, and elevate care.
TouchPoint’s approach, for example, emphasizes strategic sourcing, vendor consolidation, and predictive analytics to ensure that every dollar spent contributes to better outcomes. By leveraging our GPO relationships and focusing on innovation, TouchPoint has turned procurement into a long-term value engine.
ROI, Not Just RFPs
CFOs need partners who can speak in terms of ROI, not just RFPs. That means quantifying the impact of procurement transformation: how vendor consolidation reduces administrative overhead, how predictive ordering reduces stockouts, and how integrated systems reduce compliance risk.
TouchPoint’s model has delivered over $1 billion in savings to date for its clients, not by slashing budgets, but by aligning procurement with clinical and operational goals. It’s a shift from reactive purchasing to proactive performance management.
The Strategic Advantage Hiding in Plain Sight
In a sector where margins are razor-thin and expectations are sky-high, the supply chain is one of the few levers left that can deliver both immediate savings and long-term strategic advantage. It’s time to stop treating procurement as a cost center and start treating it as the profit center it truly is.
Ready to Turn Your Supply Chain into a Strategic Advantage?
At TouchPoint, we help hospitals transform their supply chains into engines of efficiency, savings, and better outcomes. If you’re ready to reframe procurement as a profit center and unlock untapped potential in your system, we’re ready to help. Let’s talk about what strategic sourcing can do for you.
