Cape Fear Valley Health System (CFVHS), located in North Carolina, USA, has announced an impressive $5.34 million (£2.7 million) reduction in supply chain costs in just 14 months.
The savings have been credited to a value analysis system, which recognised a potential for 60 per cent savings almost immediately.
Kevin Jackson, vice president of support services at CFVHS, said: "We set out to identify $5 million in savings and were able to implement $5.34 million.
"You have to have a strong value analysis process in place, including internal and external personnel, to make changes like this work."
The CFVHS analysis team was comprised of staff from every level of the company's chain of command, down to doctors who administer the drugs it deals with.
Through this kind of extensive research it was possible to achieve such significant savings, but the inclusion of external auditors was cited as crucial.
For any UK company attempting to create similar cuts to supply chain costs, outsourcing responsibilities will more than likely be necessary.
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