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Prodigo Case Study - UPMC


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Prodigo Solutions is focused on driving savings in the healthcare supply chain. Created by healthcare supply chain professionals, the company's suite of solutions and services drive compliance, automation, data quality and user adoption.

Prodigo's suite of products include: ProdigoMarketplace (content management), ProdigoBuyer (web-based requisition platform), ProdigoXchange (B2B data services), ProdigoTEM (telecom expense solutions) and ProdigoDNA (healthcare supply chain consulting services).

Prodigo Solutions is an operating division of UPMC's International and Commercial Services Division.

Visit us: | Twitter: @prodigo | YouTube Channel: prodigosolutions

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Prodigo Case Study - UPMC

  1. 1. ProdigoMarketplace™ Case Study PROGNOSIS FOR A HEALTHY SUPPLY CHAIN AT UPMC UPMC is an integrated global health enterprise and one of the leading nonprofit health systems in the United States. Through redefined models of health care delivery, technological innovation, and cutting-edge medical research, UPMC is improving lives in western Pennsylvania and beyond. UPMC global operations include 20 hospitals, 4,000 physicians with over 50,000 employees delivering state-of-the-art patient care in the United States, Europe & Asia. UPMC is a $7B IDN with $1.7B in annual spend with over 12,000 active suppliers. THE SOLUTION THE CHALLENGE The Supply Chain team at UPMC, led by Chief Supply Chain Officer In examining UPMC’s own Supply Chain Jim Szilagy, newly arrived from Alcoa, quickly diagnosed the condition systems a couple years ago, the $7B IDN and implemented the prescribed treatment. Their accumulated experi- with $1.7B in annual spend and over ence and best practice benchmarking indicated that getting their 12,000 active suppliers, found a patient in 7,000 users to embrace and adopt the eProcurement system was need of acute care. Despite a significant the key to a healthier Supply Chain at UPMC. ERP investment, UPMC was struggling to gain adoption for its eProcurement plat- In order to improve the user experience with the system, UPMC form. They found that only 20% of the focused on content. Users balked at complying with the current system. 4,000 purchase requisitions processed The process in which clinicians or other users were limited to searching each week were “on-contract” or compliant static local catalogs that lacked rich product detail (such as images or orders through the eProcurement system - product specifications) or “punching out” one by one to search supplier meaning 80% of purchases constituted websites - each had a different and unfamiliar navigation and user “maverick buys,” most from special interface. This process was inefficient and created frustration and requests that required extensive manual confusion. Not to mention significant catalog management support effort by Supply Chain personnel. was required for internal Supply Chain and IT resources. UPMC’s vision was to create a Marketplace which would afford users a single user interface to connect to supplier hosted and maintained “In all my years in Supply Chain, web catalogs. This provided a consumer-like, type I don’t know of any other technology search and shopping experience - all within the parameters of a con- that has had this kind of impact on driving savings.” trolled environment to enforce UPMC’s business rules and drive compli- ance with negotiated corporate agreements. Jim Szilagy Chief Supply Chain Officer UPMC The “Vitals” of UPMC’s Supply Chain Transformation • 50% Increase in Contract Compliance • 80% Spend Managed by eProcurement • 40% Reduction in Time Spent on Item Master Management • Almost half of 340,000 Orders “Touchless” • Reduced Internal Catalog Support 40% • Users Spend 1/3 Less Time to Shop/Order Copyright© 2009 - Prodigo Solutions, LLC. All rights reserved. Prodigo Solutions is a subsidiary of UPMC’s International & Commercial Services Division (visit
  2. 2. ProdigoMarketplace enables you to gain connectivity, visibility and control over your complex base of supplier content. IMPLEMENTATION The team at UPMC moved quickly to implement their strategy to maximize their use of supplier-managed web catalogs, allowing their suppliers to leverage existing eCommerce investments, by deploying Prodigo Solutions “Intelligent Agent” technology to execute cross-catalog searches of all supplier sites, as well as internal catalogs such as their Item Master of inventoried hospital supplies or a site for the in-house catering We’ve really supercharged our service, all from the single Marketplace user interface. eProcurement operation. This “The ProdigoMarketplace allowed us to eliminate a large is a prime example of applying percentage of ‘special requests,’ by requiring users to first search the marketplace to find what they needed,” says best practices from the Fortune 500 Michael DeLuca, Director of Supply Chain Systems and Consulting Services at UPMC. “We found they were able to the healthcare supply chain.” to find what they wanted, compare product attributes, and fill the shopping cart, all in about one-third less time than it used to take to complete an order. That positive Michael DeLuca shopping experience is what brought users back time Director, Supply Chain Systems after time,” adds DeLuca. and Consulting Services UPMC THE RESULT The ProdigoMarketplace solution was up and running in a matter of a few weeks, key to the positive outcome for UPMC’s Supply Chain because as DeLuca says, “if there is any delay in implementing supplier contracts that take 6-8 months to negotiate, value is eroded and savings are lost.” UPMC has experienced significant savings from the ProdigoMarketplace initiative, recently voted the top “Summit of Excellence” award winner at the annual IDN Summit & Expo by a panel of their peers. The dramatic Supply Chain transformation at UPMC is achievable by organizations of any size because the ProdigoMarketplace technology was “up and running in weeks at a relatively low cost,” stresses Szilagy. “In all my years in Supply Chain I don’t know of any other technology that has had this kind of impact,” he adds. Contact Us: (412) 445-8096 | Copyright© 2009 - Prodigo Solutions, LLC. All rights reserved. Prodigo Solutions is a subsidiary of UPMC’s International & Commercial Services Division (visit