How to compare supplier prices and save on every purchase

Most medical stores buy from the same two or three suppliers out of habit. That is convenient, but prices drift, and a supplier who was the cheapest last year may not be the cheapest today. A small comparison habit can save a surprising amount over a year.

Compare the same thing

Prices are easy to compare wrongly. Make sure you compare:

• The same unit. A price for a box of 10 strips is not comparable with a price per strip. Convert everything to the base unit, such as per tablet or per strip.
• The same tax basis. Compare prices including GST, or all excluding it, but not a mix.
• The same pack. Different pack sizes of the same medicine can look cheaper or dearer than they are.

Look at the trend, not only the last price

One low price may be a one-time offer. Look at what each supplier charged over the last few purchases. A supplier whose price rose 10% in two months deserves a question, and a call to another supplier.

What to watch for

1. Price jumps. A rise of 10% or more in a short time.
2. The cheapest current supplier, not the cheapest ever.
3. Odd entries. A price that is 40% above or below your usual is often a typing mistake, and sometimes a billing mistake by the supplier.
4. Duplicate invoices. The same invoice number entered twice doubles your stock and your payable.

Decide who to order from

When you create an order, a sensible rule is: use the product's usual supplier if you have set one, otherwise the supplier with the lowest current price, otherwise the supplier of the last purchase. Order quantities should be in whole packs.

Let the software do the comparing

MedSync builds the comparison from your existing purchases, so you do not enter anything extra. For each product it shows what each supplier charged, who is cheapest now, the trend and the full history, per base unit and per pack, including GST. On the purchase screen it shows the last price from the selected supplier and how the price you type compares. The dashboard lists supplier prices that rose 10% or more in the last 60 days, with a cheaper supplier if there is one. You can export the comparison to Excel.

A one-month experiment

For one month, check the comparison before each large order. Note every time a different supplier turns out cheaper. That list is your saving, and it also gives you something to talk about with your regular supplier.