Suppliers of indirect products and services are often overlooked, even though indirect expenditures account for 25% of average spend in a typical health tech company. Indirect procurement best practices are not always the same as direct or raw materials procurement. Nagel Strategies brings deep expertise in HR services, marketing, professional/medical education, digital solutions and consulting, to name just a few indirect services.
Take a pulse on the supply market, understand the value of current supplier partnerships, and discover innovations and other business models available. Choose the right supplier at the right price based on formalized selection criteria and business objectives. By holding supplier partners accountable you can gain a competitive edge, protect your hard work and equity, and improve the overall financial health of your company.
When business performance is critical, choosing suppliers strategically will lead to a competitive advantage in the health tech sector. Supplier identification, benchmarking, and competitive request for proposal (RFP) management are among the services provided by Nagel Strategies.
What We Do
Scoping and Goal Setting
Once the need is identified, typically following a formal spend and opportunity analysis, Nagel Strategies will consult directly with the functional leader or subject matter expert who has the closest relationship and knowledge of the supplier market. Nagel Strategies will present its own preliminary research and recommendations in order to scope an appropriate benchmarking or RFx project. Typically a benchmarking exercise can be accomplished in a short timeframe with a lean team.
Benchmarking and Request for Quote
Benchmarking is a hands-on experience for functional leaders in Lab Operations, IT, Marketing, etc., who are your company’s experts in supplier products and services. A formal benchmarking exercises looks at incumbent partners and up-and-coming players in the supply market to understand the latest in pricing models, technologies, risks and competitive differentiators.
Developing the Selection Team
When a request for proposal (RFP) is warranted, it is critical to identify an executive sponsor and selection team willing and able to take on the responsibility of developing formalized criteria and participating in final supplier selection.
During the kickoff, we will agree on a timeline, supplier participants, RFP language and, perhaps most importantly, the selection criteria.
Down-Selection, Oral Presentation, and Proposal Analysis
Depending on scope and goals, an RFx might include a “down-selection” exercise to determine finalists. If appropriate, finalist suppliers may be invited to present an oral presentation to the Selection Team. Regardless of the scope chosen, Nagel Strategies will conduct a comprehensive analysis of supplier proposals and work with the appropriate functional leader to package and present to the selection team.
During the important selection phase, Nagel Strategies will guide the team to apply pre-determined criteria to proposals and facilitate a final selection. This process is also designed to develop a sound negotiation strategy to manage risks and ensure results toward stated goals.