Burlington, ON—Mohawk Supply Chain Services has awarded a multi-year agreement to Baxter Corporation for several categories involving intravenous (IV) solutions and gravity sets on behalf if its member hospitals and other healthcare participants in Ontario and New Brunswick. According to the company, the agreement represents a cost reduction for the hospitals relative to their medical surgical spend of an estimated 10 percent a year.
“The savings achieved were due to a number of programs, including optimizing the use of a shared warehouse,” said Bob Rankin, Mohawk’s director of sourcing.
As part of the process, Baxter identified an opportunity to optimize shipments from its manufacturing facility in Alliston, Ontario, that would help to meet customer requirements and reduce the company’s carbon footprint. Using a shared warehouse for Mohawk Shared Services lets Baxter eliminate two transports and transfers with each shipment, which the company said would result in fuel and gas emissions savings and associated costs. Baxter started its first shipment on June 1 of the first identified product code, shipping directly to Mohawk Shared Services from Alliston. In September, Baxter added a second code to this bi-monthly shipment.