Client Background

A U.S.-based dental service organization (DSO) with over 30 clinics was heavily dependent on a single dental lab for crowns, bridges, and aligners. Rising lab costs and delayed deliveries began affecting both profitability and patient turnaround time.

Challenge

• Over 80% of lab orders were concentrated with one vendor, leading to price rigidity.
• Average lab cost per case had increased by 22% in one year.
• The procurement team lacked time and visibility to evaluate alternate vendors.
• No comparative performance metrics (turnaround time, rework rate, or pricing tiers) were available.

Our Approach

Our outsourcing team conducted a vendor diversification and benchmarking analysis across multiple accredited dental labs.
Key steps included:

• Created a vendor scorecard considering cost, quality, and delivery timelines.
• Negotiated rate cards with three new labs, introducing healthy competition.
• Set up a centralized PO tracking system to monitor order volumes and turnaround metrics.
• Implemented monthly lab cost variance dashboards for continuous savings tracking.

Results

• Reduced overall lab cost per case by 18% within six months.
• Improved average delivery turnaround time by 2 days.
• Enhanced bargaining power by maintaining multi-vendor flexibility.
• Established ongoing performance analytics for quality and cost control.

Impact: Strategic vendor diversification turned a cost-center into a competitive advantage — optimizing expenses while maintaining top-tier clinical quality.

 “Efficiency, Transparency & Savings — Delivered.”