Consorta tests online RFP process as new group contracting technique

Consorta, Inc. is serious about supply chain efficiency and they aren't afraid to look in their own back yard! On May 14, 2001, Consorta, a leading group purchasing and resource management company, piloted an online request for proposal (RFP) process with intesource (Phoenix, Arizona). Used to secure savings on "bath in a bag" products, the reverse auction technique produced a new contract with Medline (Mundelein, IL) that was unanimously approved by Consorta's Contracts & Programs Committee on June 19, 2001.

"We are pleased to provide Consorta with the technology that supports their initiatives for bringing new efficiencies to the supply chain," said Oren Davis, CEO and founder of intesource.

Consorta sent six suppliers an electronic RFP for "bath in a bag. The ensuing live auction scenario allowed each supplier to post beginning prices for defined products. Each supplier was online to monitor the current offers and could choose to submit a lower price during the real-time process.

"We started with bath in a bag because it's a growing product category in both alternate and acute care," said Mary Starr, director of care continuum programs for Consorta. "The process worked very well," she said, "We plan to use this process with more product categories in the future."

"The technology used to automate the RFP process helps to reduce costs and can also cut the contracting time, which ultimately benefits all stakeholders in the healthcare supply chain" said Louise Ruetz, vice president Healthcare Solutions for intesource.

"We are very interested in bringing new efficiencies to all aspects of the supply chain," said Consorta's chief operating officer, Darrel Weatherford. "Our Internet services via WINGS™ are another good example of how we are responding to customer needs with efficient electronic solutions."

Consorta is also a part of the Coalition for Healthcare eStandards, a group of e-commerce providers and GPOs actively working to drive uniform industry standards for all supply chain data transmitted over the Internet. Coalition members include HealthNexis, MedAssets.com, MedCenter Director, Medibuy, and Neoforma, Consorta, Novation and Premier. For more information about the coalition visit www.CHeStandards.org.

Source: Consorta, Inc.

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