Plexxus and Mohawk Medbuy Corporation Announce Agreement for Joint Sourcing
Plexxus and Mohawk Medbuy Corporation (MMC), Ontario’s two largest public healthcare supply chain services organizations, today announced an agreement to formally undertake joint strategic sourcing initiatives on behalf of their member and customer hospitals. This follows their previous announcement to assess a strategic partnership focused on joint sourcing. The outcome of this assessment demonstrated a tangible opportunity for value creation through cost savings and more efficient, effective and scalable sourcing processes.
“Together our organizations represent 60% of health care spend in Ontario hospitals across a broad range of categories including medical devices, supplies, pharmaceuticals and facilities. This is an exciting opportunity for us to leverage our strengths and expertise,” commented Tony DiEmanuele, President and CEO of MMC.”
Joint sourcing initiative RFPs will be posted under the banner of MPSC (MMC Plexxus Sourcing Collaborative). Over the next 12 months a significant number of RFPs are ready to be released by MPSC covering several categories, starting off with cardiac products, IV solutions, and sutures. MMC and Plexxus will work closely with their respective hospitals to develop the appropriate sourcing model, continuing to ensure there is a balance of clinical input and member engagement, as well as driving value.
In addition to looking at every opportunity for joint sourcing, MMC and Plexxus will also continue to lead specific sourcing initiatives on behalf of their respective members and customers. “This agreement, in the same way as the recent collaboration in consolidating our distribution centres, demonstrates our commitment to look for opportunities for our organizations to work more closely together,” commented David Yundt, President and CEO of Plexxus.