Optimising the operating model for a service provider in the health care sector

Enabled the client to meet future demand while also delivering 5% in annual cost savings

The client’s problem

An internal service provider offering full service of medical devices across several geographical locations in the health care sector asked Oleto Associates to define an overall development plan for the future. The client was responsible for a wide range of activities ranging from sourcing and procurement to operations and maintenance of medical devices and was the result of a merger of several local service units. The development plan needed to focus on key process improvements and realignments, as well as defining the future target picture.

Our approach

The development plan had two overall targets. First of all, it had to ensure that the business unit could meet a significant rise in future demand and that it could standardise service offerings and processes across product groups and customer locations. Secondly, the client’s service delivery model had to be optimised including significant changes to the sourcing mix, further exploitation of economies of scale, and optimisation of internal processes and collaboration models. The initial phase focused on gathering a detailed fact base on the current situation and collecting service requirements from internal customers including a review of key process efficiency. In the second phase, the target picture for the strategic delivery model was defined including scope of service offerings, collaboration models, process interfaces, sourcing of products and workforce, organisation, implications for the future cost level and potential for cost savings levers, e.g., optimising processes and taking advantage of synergies and economies of scale. In the third phase, an overall development plan for the following years was delivered including a detailed action plan focusing on critical initiatives for the first year. 

Value delivered

Aligning and optimising service offerings and processes across all locations serviced by the client enabling the client to meet future demand while also delivering 5% in annual cost savings.