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Have Confidence in Your Supply Chain with Efficient Materials Management Services

PSI Supply Chain understands the challenges facing hospitals and health systems as they seek reliable sources for supplies vital to their daily operations.

Materials management, on average, is the second largest expense for hospitals and health systems, second only to employee salaries and benefits. Facing thin margins, effective cost containment becomes more critical.

Due to COVID-19, facilities are finding supplies that were once easy to source have been significantly more difficult to come by in recent weeks. Inventory and operational challenges are also more complex. Traditionally dependable sources may have depleted inventories - placing materials management operations on unsure footing, especially if their network of suppliers are unable to source their needs to meet increased demand.

Our materials management experts provide clients with the assurance that their operational needs will be met and consistent support is provided to meet their supply needs. We leverage strategic partnerships, utilize technology and provide operational expertise to Directors of Materials and clinical staff.


Alternate Sourcing Options

Our operations team identifies and vets alternative suppliers of personal protective equipment. We leverage strategic partners and pool our collective purchasing power to manage a database of manufacturers and vendors that we know are able to perform. Our leadership maintains close contact with Directors at our client sites to ensure we are addressing their most pressing needs.


Director Support

We host weekly calls with our Directors to ensure organizational alignment. Individual engagements ensure inventory and operational matters are managed effectively at the respective facility. Our Directors are evaluated to ensure they are effectively navigating challenges while contributing to a culture of continuous improvement.


Proprietary Technology

Enables our team to find alternative vendors for supplies in the event traditional vendors experience shortages. This visibility allows them to both find viable alternatives and compare any newly recommended manufacturer to FDA approved standards. Our tools allow our Directors to quickly pivot to clinically equivalent alternatives while vetting recommended substitutions.



A recent survey of 150 hospital decision makers regarding the challenges in materials management departments revealed that:

  • Only one-third of respondents rated their hospital’s materials management as very effective;
  • Two-thirds of respondents strongly agreed that improving their materials management effectiveness would cut overall costs, increase revenue and lead to better quality of care.[1]

Given the potential positive impact that optimized materials management can have on a hospital’s operational performance - but low penetration of the capability - many hospitals choose to outsource their materials management departments.

Let’s take a look at a mid-sized hospital that did so and the results they achieved.


Case Study

By outsourcing their materials management department, one hospital with a total of 60 licensed beds:

  • Saved more than $400,000 through renegotiating recurring supplies
  • Saved more than $450,000 through renegotiating lab services

Through improved efficiencies, capital procurement and vendor negotiations, this hospital saved a total of more than $900,000 in their first year with an outsourced department.


Financial Results

On average our client hospitals and health systems see an ROI ratio in excess of 5:1. We deliver annualized savings that drive best-in-class quality and patient care.

Averaged annualized savings

  • < 50 beds - over $200,000
  • 50 to 99 beds - $300,000 to $425,000
  • 100+ beds - $450,000 to $600,000

By helping to reduce inventory, improve patient care and increase clinical staff productivity, CPS materials management leads to dramatically lower expenses.


Providing Peace-of-Mind for Caregivers and Staff

We drive best-in-class operations by securing access to the supplies that caregivers require. By removing concerns about the reliability of their supply chain, clinicians are able to focus on direct patient care work. In this unprecedented time, expertise and leadership provide tremendous value.

Click here to contact a member of our team about your supply chain challenges.  We would love to partner with you to reveal new efficiencies and optimize your supply chain.


[1] Accessed 3.12.20.


Posted: Saturday, August 29, 2020

Tags: Industry Articles, Blog