Who's got strategic sourcing on the brain?

Staff -- Purchasing, 11/4/2004

Drug wholesaler Cardinal Health plans to save $125 million by the end of its fiscal year in June 2005 through a strategic sourcing initiative. Cardinal spokesman Jim Mazzola declined to provide any more information on the cost-savings measures being put in place at the company, whose accounting procedures are currently under investigation by the Securities and Exchange Commission.

The state of Missouri saved $2.6 million or 29% on its office supplies buying with a new statewide contract. Under the new contract, office supply providers will file regular reports to the Office of Administration, providing better data on contract usage allowing the state to adapt its purchasing practices to realize additional savings. The suppliers have also agreed to enable local governments and municipalities to purchase off this contract through the Cooperative Procurement Program to increase the volume levels and discounts.