Expense Management

Knowledge CenterHenry Schein

Henry Schein

Over $7.2 million in savings using a Wireless Expense Management Solution

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Henry Schein

Industry:

Health Care Products & Services

Solutions:

Wireless Expense Management
Mobile Procurement

Background

Henry Schein, Inc. (Nasdaq: HSIC) is the world’s largest provider of health care products and services to office-based dental, animal health and medical practitioners. The company currently serves more than one million customers through a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items.

Challenges

With over 18,000 employees across the country at the time, Henry Schein Inc. had a lot to keep track of, but dealing with hard-copy spreadsheets from their wireless vendors, it was next to impossible to stay on top of it all. “We were basically paying bills on the fly,” said Dorit Sikavi, IT Senior Purchasing Analyst. “There just wasn’t time to verify everything. The best we could do was eyeball and sign.” The truth is, they didn’t even know how many devices they had—or how much their wireless spend really was. “We thought we were spending about $1.5 million, but the real number (as we found out after implementation) was closer to $3.5 million,” Henry Schein’s VP of Infrastructure, said.

Solution & Results

“They had already done some work for us, so we knew their track record—and how reasonable their pricing is,” said the VP of Infrastructure. “We knew how efficient and diligent they are,” added Sikavi. “They started by importing all the vendor data—digitizing and automating the process, and eliminating all those printed bills. Next, they analyzed all our plans, to determine exactly what we had, what we were paying for, what was being used and NOT being used.”

“Based on their recommendations—and armed with the knowledge their analysis provided—we were able to renegotiate with our vendors. Right off the bat, that saved us a quarter of a million dollars. On top of that, we were able to save another $150,000 in cleanup, thanks to up-to-date information on devices that were no longer in use.”

“Then there was text messaging. People were texting when it wasn’t included in their plan. It turns out, only a few actually need it. That piece of information saves us another $3,000 a month,” continued Sikavi.

“We have total control now. We know exactly what’s going on with every device and every vendor, and it’s saving the company a lot of money. There’s no way we could’ve done it without their help,” concluded Sikavi.

We thought we were spending about $1.5 million, but the real number, as we later found out, was closer to $3.5 million.

—Henry Schein’s VP of Infrastructure

What started as more than $500,000 in savings from canceling unused lines and optimizing cellular contracts and plans to avoid overages, since 2007, has grown to a cumulative savings of over $7.2 million today.

“I feel comfortable that our mobile costs are low as they can be and we have very good service to our internal customers that use all the various smartphones,” said Henry Schein’s CTO. “Things we don’t even see, they see. I don’t have to worry about the smartphones as I know it’s been handled properly,” he continued, which includes $20,000 in billing errors last year alone.