Healthcare provider organizations are experiencing rising supply and service costs contributing to an increasing share of their operating expense. Effective non-labor productivity is the effective and efficient use of supplies and services to care for patients. This chapter helps the reader use effective tactics to manage non-labor productivity and expense, such as applying physician preference item initiatives and demand matching programs to align patient needs with the right product and adopting a comprehensive product and service evaluation program through value analysis, purchased services assessment, and value partnering. Leaders accountable for the financial and operations performance of their business enterprise must continuously assess opportunities to improve the safety, quality, and efficiency of the products and services provided to their patients. The goal of improving non-labor productivity is to get the right supply or service to the right patient, at the right time, and at the right price.