Case Study 5

Overview

BGS professional partnered with a leading buying group representing over 150 privately owned dental practices across the United States. The group was facing increasing challenges in streamlining procurement processes, reducing costs on essential supplies, and optimizing inventory management, all while ensuring compliance with evolving industry standards. With dental practices focusing on patient care, they needed a strategic partner to enhance procurement efficiency without compromising quality.

The challenge

The dental buying group had historically worked with a fragmented network of suppliers, resulting in inconsistencies in product pricing, inventory shortages, and inefficiencies in vendor communication. Additionally, the group wanted to leverage its collective purchasing power to negotiate better terms and pricing but lacked the data-driven insights necessary for effective supplier negotiations.

Approach

BGS’ solution was to implement a comprehensive procurement strategy that aligned with the group’s objectives while leveraging its collective purchasing power. The project unfolded in three phases:

Assessment and Analysis: BGS professionals conducted a full audit of the dental group’s existing procurement processes, evaluating current supplier relationships, pricing structures, and product needs across all 150 practices. We identified significant inefficiencies, including redundant suppliers, inconsistent pricing, and stock shortages for critical supplies.

Vendor Consolidation and Negotiation: Leveraging BGS’ extensive network, we identified a select group of reputable suppliers that could meet the dental practices’ needs at scale. By centralizing supplier relationships, we negotiated favorable pricing contracts, resulting in an average 18% reduction in the cost of frequently used dental supplies, such as sterilization equipment, dental chairs, and consumables.

Implementation of Technology-Driven Procurement System: BGS introduced a streamlined, technology-driven procurement platform that integrated directly with the dental practices' existing inventory management systems. This platform allowed for real-time inventory tracking, automated reordering of supplies, and access to data-driven insights for future purchasing decisions. The system significantly reduced manual ordering errors and improved inventory turnover rates by 25%.

Results

By partnering with BGS, the dental buying group achieved measurable improvements in both procurement efficiency and cost savings, including:

Reduction in supply costs:

Consolidated purchasing power and strategic supplier negotiations led to substantial savings on essential dental supplies.

Improvement in inventory management:

The technology-driven platform allowed practices to reduce stockouts and overstocking, optimizing the supply chain across all locations.

Stronger supplier relationships:

The dental practices benefited from more favorable contract terms, including extended payment periods and volume-based discounts.

Enhanced decision-making:

With access to real-time procurement data, the group could make informed purchasing decisions that aligned with practice needs and market conditions.

Conclusion

Through strategic sourcing, vendor consolidation, and the integration of advanced procurement technology, BGS was able to help the dental buying group achieve significant cost savings while enhancing overall supply chain management. This partnership enabled the group to focus on its core mission—providing exceptional patient care—while benefiting from streamlined operations and improved financial performance.