Why is it so hard for Suppliers to get in to see you?
Recently I saw a survey asking Suppliers what their biggest challenge is in this crazy healthcare contacting and sourcing market. The most common answer was “Access to IDN Decision Makers.” I could tell from the responses this struck a nerve for Suppliers, and they were at a loss as to why they couldn’t get an occasional meeting with Supply Chain Leaders. I thought I’d share my thoughts on why it is so difficult to get venue with IDNs today.
The days of Sourcing Executives giving someone the courtesy of a meeting to present a competitive solution to an incumbent Supplier or to present a new product, therapy or service are long gone. And not coming back anytime soon. Suppliers need to clearly understand their competition is not other brands in their category. Their competition is everything competing for Supply Chain Leaders’ attention! Here is a very short list of what some of those things could be:
- Mergers and acquisitions
- New ERP implementation
- Changing GPOs or Distributors
- Building a CSC
- Exploring hyper aggregation opportunities
And a myriad of other projects. All this in an environment of high inflation and labor challenges. It is the perfect storm, again.
I think pre-COVID, Supply Chain Leaders budgeted time for Suppliers they were not currently doing business with (maybe even unknowingly). But now that remote work is more common it is just easier to not take meetings that they may have five years ago. It’s almost like we have lost the decorum of doing the buyer-seller mating dance. I am not sure that is all bad, to be honest.
Hospitals and IDNs are not going to have their purchasing decisions swayed much by a courtesy meeting. When was the last time you made a major purchase, say a car or a house, and it was influenced by a selling party? Research shows business-to-business buyers do over 70% of their research before they engage a brand to discuss a conversion.
I get the sense that buyers are not influenced by sellers anymore or to the degree they used to be. They prefer to learn features and benefits from other users, read third party reviews and search online for social proof.
I’d love to hear your thoughts.
Thanks for reading this issue of The Journal of Healthcare Contracting.
John Pritchard
