Sourcing, Questions And Answers In Healthcare

1. What alternative should Barney Rubble consider when addressing the problem?
When addressing the problem of sourcing, Mr. Barney should consider other after sales services such as the cost of maintenance of the supplied equipment. Barney should pay more attention to the cost charged on the health facility for such services as they increase further the overall cost of the supplies (www.achsm.org). As a solution to this, he should focus on the healthcare’s strategy which requires that they source for quality at an overall reduced cost. Therefore, when selecting the supplier for the equipment, Barney‘s choice should be rational and guided by the need to source for quality at a reduced cost. This can be implemented through a competitive bidding process which will allow the potential suppliers an opportunity to reveal the possible overall costs while at the same time giving the healthcare an opportunity to negotiate further for better prices.
2. Should Pacific’s supply policies allow any medical staff personnel to control sourcing decision?
Such an arrangement ensures that Pacific healthcare obtains an overall reduced cost as opposed to a higher cost was it that Kodak did not give them the existing discounts.
The other advantage that Pacific Healthcare gets if it decides to retain Kodak as its main supplier is on the time spent on decision making. If the healthcare facility decides to change its supplier, the process will take more time as there are various factors that it has to consider before settling on the next supplier. Such a process is tiresome and time consuming as opposed to staying with Kodak which will involve little decision making that saves on