February 8, 2024 —In 2023, the Kendal System saved hundreds of thousands of dollars that would only have been actualized with a renewed focus on group purchasing and procurement strategy and actively seeking out these savings. Much of the recent savings come from rebate options not previously taken advantage of with Entegra Procurement Services, purchasing more products from Care Purchasing Services (CPS) and The Kendal Corporation’s Director of Procurement’s direct actions of getting on the phone to investigate group savings and negotiate the best prices.
The Group Purchasing Organization (GPO) effort has already identified over 100 “untied” suppliers with Entegra, where Affiliates had been using Entegra suppliers but were not getting discounts or rebates. Tying these has resulted in significant savings. Other savings come from more Affiliates working with CPS and others proactively sourcing the best prices.
Leveraging Relationships and Sourcing the Best Deals
It has been essential to build strong relationships with suppliers and improve connections with Kendal’s partners Entegra (primarily for dining and food purchases), CPS (other items often used in care settings), and other key suppliers like Amazon.
The procurement process is not a one-size-fits-all approach. It requires constant brainstorming, innovativeness, and creative thinking to develop solutions that can drive value. There are always ways to optimize the procurement process by exploring new technologies, sourcing new suppliers, or negotiating better deals.
The goal of Kendal’s procurement strategy is for those making purchases within the Kendal System to contact The Kendal Corporation and optimize the use of Entegra, CPS and other established relationships to make purchases. Kendal at Lexington’s CFO, Felicia Bush, recently commented, “Dan has been wonderful in helping Kendal at Lexington navigate the new GPO with CPS and with the purchase of new IT equipment. He is on top of responding to any requests we have made, and we have realized substantial savings.”
Additionally, over the last four months at Collington, Tamika Pannell’s role has been “Buyer,” focused primarily on making purchases for the community. Collington is the first Affiliate to assign this role to one person who coordinates most purchases for the community. Tamika has settled comfortably into her role and, among other things, works with Dan to develop procurement policies and credit card procedures, optimize IT orders, facilitate delivery consistency, and continue to work towards goals for cost savings.
Regarding optimizing what the GPO can do, the System is not there yet, with some Affiliates utilizing group purchasing at a super-user high of 70% while others are still only using it at 20%. Affiliates could also benefit by meeting and communicating more regularly regarding purchasing needs and connecting with Kendal before making major purchases or establishing new supply contracts.
Meet Dan Rock
Effective procurement has become a priority for the success of Kendal operations. It’s not just about chasing lower prices; it’s about building relationships, thinking outside the box, and being persistent. This is precisely what Kendal’s recently hired Director for Procurement, Dan Rock, brings to the table. Dan is leveraging his vast experience and expertise to create substantial savings for Kendal Affiliates. Dan’s creativity has helped him save Kendal money on contracts and create better working relationships with suppliers.
Dan has always been passionate about negotiating and saving money since he was young. He feels it’s in his nature. He shares, “I get paid to ask questions that make most people uncomfortable. Rejection doesn’t bother me. Fortunately, I usually make out on top in negotiations!” Can you tell he comes from a highly competitive family? He admits his wife doesn’t always enjoy going shopping with him but says he does know when it’s best to let go.
Building relationships and persistence is key in any procurement process; asking difficult questions, following up, and pushing back gets the best results. It’s this relentless pursuit of success that has earned Dan great success in his career in procurement across various organizations.
More Savings on the Horizon
As the Kendal System looks forward, there are still many opportunities for additional savings on low-hanging fruit.
These include:
- A new Entegra tool to optimize food selection to decrease contracted purchasing. This could potentially save hundreds of thousands of dollars.
- Credit card rebates across the Kendal System for potentially up to $60k in savings.
- Exploring drug rebates through manufacturers could result in a 10% savings.
Furthermore, to advance Kendal’s commitment to diversity, Kendal is pursuing ways to enhance vendor relationships with minority-owned companies. An initial review of data regarding current vendors is underway, showing that Kendal has a healthy start in this area while more opportunities exist to further this effort.
In a rapidly changing field and complex economic environment, it is invaluable that Kendal invests in a vibrant procurement strategy. To contact Kendal Corporation’s Director of Procurement, email Dan at drock@kcorp.kendal.org.