Celerion finds ‘significant’ savings by affiliating with Premier Last Updated: July 9, 2014
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Challenge

When Celerion joined Premier, Inc. (NASDAQ: PINC) in March 2012 as an affiliate of owner Health Enterprises Cooperative (HEc), its global supply chain manager was afraid the early phase clinical research organization would not see the same savings other healthcare organizations do because of its unique and smaller supply chain. Further, he was skeptical about additional savings because his team had spent a lot of time trying to drive costs out. Dennis Jacobson did not need to worry.

Solution

Early on, he established a productive working relationship with HEc and Premier Continuum of Care representatives. They helped him deal positively with a potentially costly Xerox copier-printer agreement challenge. With Premier’s help, the two parties worked through their differences and established a new, more productive relationship with considerable savings.

There have been other benefits. Jacobson said his legal department reviewed several Premier contracts before deciding they no longer needed to review them, qualifying vendors faster and allowing Jacobson’s team to meet existing tight supply chain deadlines.

When he had to write a vendor diversity policy, Jacobson turned to Premier. “With one phone call, I was connected to Premier’s supplier diversity program director. After a brief consultation and sharing information, I had the policy written the next day. It was great.”

Result

“I couldn’t be more impressed,” Jacobson said. “We’ve done really well. We’ve received savings I didn’t expect,” such as:

  • $250,000 savings on leased copiers and printers,
  • $20,000 on office supplies,
  • $15,000 on cell counters,
  • An additional 50% savings on scrubs, and
  • An additional 15% savings of housekeeping.

Jacobson noted that there are “so many more opportunities for savings. I’m really looking forward to that.” He just signed a new food service contract and anticipates significant savings on shipping thousands of specimens annually by signing with a Premier contracted supplier. Also, he recently contracted with a pharmacy distributor, something he noted that his company had experienced difficulty doing previously because of its unique requirements.