Abstract 2: Reduction of Laboratory Supply Costs and Streamlining of Ordering Process

Abstract Introduction The Cleveland Cord Blood Center (CCBC), a public, standalone, not-for-profit FDA-licensed cord blood bank, purchases laboratory supplies from multiple vendors for use in the manufacturing process of licensed cord blood units. The cost of common laboratory supplies, such as plastic tubes, disposables, cleaners, and testing reagents, continues to rise at a steady rate. Objectives To reduce overall laboratory costs and streamline the purchasing process on frequently used laboratory supplies while remaining compliant with licensure requirements. Methods Data was gathered on frequently purchased laboratory supplies by using the current vendor’s pricing and determining the cost for a one-year supply of inventory. Vendors with current standing orders were contacted to determine if there are additional discounts available for extending standing orders or increasing the volume. Similar supplies offered by the same vendor or by alternative suppliers were researched to determine if there are less expensive supply options available. Contracting with a national service provider for purchase of supplies at a wholesale discount was evaluated. Results Several less expensive and similar supply options available from the same vendor for frequently ordered supplies were identified, as well as one alternative vendor with similar supplies available at discounted pricing. No additional discounts were offered by vendors with current standing orders. CCBC signed a supplier agreement with a national contracting service to purchase laboratory supplies at wholesale pricing. As such, the majority of CCBC’s frequently ordered supplies will be purchased at a significant cost reduction, with savings of approximately 13% from the annual supply budget. Additionally, CCBC will be able to consolidate ordering supplies through one main vendor, streamlining the ordering process and providing better preventative measures from backorders and shortages. Discussion Many cord blood banks can receive discounts on supplies through connections with a larger hospital or university system through bulk ordering. CCBC is unique in that it is a standalone public cord blood bank that is not connected to a larger hospital or university. By joining a national contracting agency, CCBC now has access to larger discounts on supplies through group purchasing discounts. After the annual membership fee, we are anticipating roughly 13% in savings compared to budget.