Large hospitals purchase more than 15,000 individual products on a routine basis. One challenge for a hospital's purchasing department is that the various hospital departments use different product descriptions and classifications for the same item. One purchasing manager plans to institute a hospital-wide purchasing policy that gives a specific code to each item. In doing so,what is the purchasing manager engaging in?

Question

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The purchasing manager is engaging in standardization by creating a hospital-wide purchasing policy that gives a specific code to each item. This will help to overcome the challenge of different departments using different product descriptions and classifications for the same item. Standardization will ensure that everyone is using the same classification system, which will lead to more efficient purchasing processes and greater cost savings.

Large Hospitals Purchase More Than 15,000 Individual Products on a Routine