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The Leyenburg, a major Medical Institution in the NetherlandsThe Leyenburg Hospital is a leading 500-bed institution serving the The Hague region with all Medical disciplines represented. In 2003, a new center for Cardio surgery (1600 open-hearts / year) and Interventional Cardiology (1600 PTCA / year) will be opened. The Purchasing department, lead by Hans de Ruyter, is an active member of the Dutch Purchasing community and involved in numerous e-procurement initiatives.
Makeover of the Publishing Department The Internal Publishing Department is responsible for accurately publishing thousands of forms and information booklets for patients, medical and non-medical personnel and for external communication purposes. The department was in need of an upgrade of their high-volume and mid-volume publishing capacity as their hardware was outdated. In addition, 60 network printers were needed for local user printing capacity. Negometrix was asked to support the 2 different strategic purchasing projects; evaluate the needs, analyze competing offers and perform the on-line auction. Initially, the Publishing Department had a clear preference for 1 of the suppliers. However, at least two alternative suppliers seemed significantly cheaper, this lead to some discussion between the end-users and the purchasing department. With help of Negometrix, the project was given structure and a rational decision support base. The exact needs (must-have's as well as nice-to-have's) were quantified and matched with the offers. The offers were measured in against 24 criteria grouped in 7 families such service, digital options, capacity and ease of use. (see table 1) 
"The deep involvement of the end-user of the publishing-hardware was essential to the success of the project. This approach forces end-users to think in specifications rather than in company a or b. This creates a much better bargaining position for the purchaser" says Hans de Ruyter, head of purchasing. In the end, 5 suppliers were short listed to enter the negotiation phase. The Negotiation decision phase was entered with 50% weight on the qualitative aspects defined by the end-users and while the other 50% was based on price. 
On June 17, 36 bids were made in 2 hours time resulting in a saving of 16.8% on the preferred supplier's offer. The average supplier, global players such as Kodak, Xerox and Cannon, decreased price with 14.5% during the 2 hours negotiation. "You get the a very profound picture of the market very quickly, normally it takes several weeks to finish a negotiation" Adds Hans de Ruyter. "Negometrix is providing me with a ready to go tool any purchaser can use right away without any upfront investment. It is saving me time and it gets me a deal that would not have not be possible to negotiate with traditional methods". |