A few surprising facts
- In the rest of the industry, procurement managers in all material cost-intensive sectors are in executive board positions, whether as trained engineers or financial experts.
- With a portion of 35-40% medical and non-medical material costs depending on the case-mix, the hospital sector also has one of the highest material cost shares compared to others.
- “Procurement” is a major stepping-stone career in the industry.
- Procurement managers are the “rock stars” among executive boards, with digitalisation making the role of the purchaser even more important.
- The current CEO of Volkswagen – the world’s largest automobile manufacturer – used to be former Chief Procurement Officer at BMW.
- The new BMW CEO was previously Chief Procurement Officer at BMW.
Lack of price and cost transparency
One of the biggest obstacles to efficient purchasing is the fact that national and international price transparency is virtually non-existent:
- The Internet has made every sphere of life transparent all around the world. However, this does not apply to prices and conditions for medical goods. At an international level, this is because healthcare, particularly the hospital sector, has a very national/domestic character.
Digitalisation makes the role of the purchaser even more important being aware that the transformation process is currently taking the healthcare sector by storm.
Purchasing processes are particularly predestined for digitalisation. All the industrial sectors are already very advanced in this respect too. The health sector is the only one that has fallen behind, even though its pure procurement processes are not substantially different from the rest of the industry.