---
title: "Supply chain tip of the day: Use precision benchmarking for purchased services"
description: In purchased services, ratio benchmarks provide no insight into the quality of a service provided. Precision benchmarking is more reliable and effective.
image: https://blog.conductiv.com/hubfs/Beckers%20hospital-logo.png
---

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## Supply chain tip of the day: Use precision benchmarking for purchased services

Product benchmarking can be based on simple ratios related to volume, price and geography. However, in purchased services, ratio benchmarks provide no insight into the quality of a service provided, according to Chris Gormley, CEO of Guilford, Conn.-based Medpricer. 

*Originally posted on Becker's Hospital Review, [click here](http://www.beckershospitalreview.com/supply-chain/supply-chain-tip-of-the-day-use-precision-benchmarking-for-purchased-services.html) for full article.  *

*![Beckers hospital-logo.png](https://blog.conductiv.com/hs-fs/hubfs/Beckers%20hospital-logo.png?width=392&height=80&name=Beckers%20hospital-logo.png)*

Download for more information about how precision benchmarking can help healthcare systems get the best prices from their suppliers.

[![Download Compare Benchmarking Information](https://no-cache.hubspot.com/cta/default/1955147/e47bbfdf-f5d2-454a-b70b-8b524fb9c5aa.png)](https://cta-redirect.hubspot.com/cta/redirect/1955147/e47bbfdf-f5d2-454a-b70b-8b524fb9c5aa)

[Click here](http://www.medpricer.com/increase-speed-savings-precision-benchmarking-purchased-services-webinar-hosted-medpricer-tpc/) to read what TPC says about how they leveraged Medpricer’s nationwide data to confidently challenge existing suppliers on their pricing, service levels and terms resulting in increased savings and a more efficient process to advance negotiations faster. 

 

 

By [Chris Gormley](https://blog.conductiv.com/author/chris-gormley)|

May 31, 2017 

|

[precision benchmarking](https://blog.conductiv.com/topic/precision-benchmarking)

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