Healthcare supply automation fuels powerful innovation in eProcurement. The P2P process and transaction automation are two of the many procurement process improvement areas through healthcare supply chain innovation. Just think about how many people have to touch a manually processed invoice. You might begin to understand one of the main frustrations of healthcare AP professionals everywhere.
Learn more about the power of healthcare supply chain automation in eProcurement to drive efficiencies and strategic advantages.
Healthcare Supply Chain Automation’s Role in eProcurement – the P2P Process
The Procure-to-Pay (P2P) process is a crucial business workflow. The process starts with requisitioning, where a department identifies a requirement and requests approval. Once approved, a purchase order (PO) is created and sent to the supplier. The supplier then delivers the goods or services and sends an invoice.
Upon receipt, the goods or services are inspected and matched with the PO and invoice. If everything aligns, the invoice is approved for payment. Finally, the payment is processed and completed. This streamlined process enhances efficiency, reduces costs and ensures compliance, making it essential for effective procurement management.
However, invoice approvals themselves can be complicated and time consuming. The lifecycle of a manually processed invoice is long and error-prone. First, the supplier sends it to the community where it’s routed for approval. Then, it’s physically scanned or entered. Next, the invoice is paid while yet another person archives it for accounting.
The lifecycle of the invoice can vary even further depending on whether it’s processed through mail, email, or in person. None of these are ideal to begin with and always include the risk for added human error.
What is Procurement Automation?
Procurement automation automates manual processes to reduce time and maximize efficiency. Automated procurement processes for businesses can increase productivity, reduce manual errors and provide greater spend visibility.
Top 4 Benefits of Healthcare Supply Chain Automation: Features of eProcurement
Electronic invoicing (or e-invoicing) began in the 1990s to streamline the invoicing process. New automated features along with cloud-based capabilities are gradually becoming the norm.
Large, independent, and even self-managed healthcare organizations have jumped on board with this third-party technology. They are noticing the difference in more ways than expected. Benefits of healthcare supply chain automation include higher processing efficiency with lower costs, reduced exceptions, and improved visibility and auditability.
1. Higher Processing Efficiency
Communities using an electronic invoicing system only take days to process an invoice. Compared to what could sometimes take weeks with manual entry, this marks a significant improvement. Automated invoicing also reduces the stress and hassle of pushing through an invoice at the last minute.
The increased efficiency of automated invoicing can also bring financial benefits. Faster payments can mean early payment discounts in some cases, and certainly a reduction in late fee charges. It’s a win-win-win for providers, suppliers, and the corporate office alike.
2. Lower Processing Costs
Several factors go into processing costs. Think labor, fees – even postage. On average, communities using an automated invoicing system can save up to 80% of their processing costs! Considering most healthcare organizations process thousands of invoices, it’s easy to see the appeal of automation.
What’s more, e-invoicing provides a great opportunity to save massive amounts of paper and be more compliant with green initiatives. Over the long term, companies that automate paper-heavy processes will appreciate a more streamlined accounts payable department that spends much less on raw materials for the office.
3. Reduced Exceptions
Automated invoice tools allow for improved exception management, since data can be readily reviewed faster. The improved accuracy of real time data means fewer rejections and less time resolving payment issues. Faster payment processing leads to a more streamlined invoice approval process where issues are identified and corrected quickly, ensuring smooth operations and fewer delays in the procurement process.
4. Improved Visibility & Auditability
Being able to spot inconsistencies and trends in invoicing payments, as well as forecast future business decisions are invaluable capabilities to any organization. E-invoicing also allows organizations to get the bird’s-eye view of their spend. This includes consolidated reporting and analytics in real time. This visibility enables healthcare providers to make informed decisions, manage budgets more effectively and identify areas for cost savings.
The Future of eProcurement: Integrating Advanced Technologies
As the healthcare industry continues to evolve, the integration of advanced technologies such as AI, machine learning and blockchain will play an increasingly important role in eProcurement. These technologies offer new ways to enhance transparency, security and efficiency in the procurement process.
AI and machine learning algorithms can analyze purchasing data to identify trends, predict future demand and recommend optimal procurement strategies. Blockchain technology can provide a secure and transparent ledger of all transactions. Secure transactions reduce the risk of fraud and ensure the integrity of the supply chain.
DSSI: Healthcare’s eProcurement Solution
More and more organizations are using Direct Supply® DSSI™ for help with transaction automation and what’s next in healthcare supply chain automation. Our proprietary DSSI Capture™ service offers 100% invoice automation from both local and national vendors – suppliers don’t even have to be on the system. Currently, more than 250 organizations are leveraging the DSSI platform to streamline their transaction automation, with more than 15 million transactions moving through the platform each year.
Many organizations using the DSSI platform can save $10,000 or more annually. The evidence shows that by digitizing transactions through the DSSI platform, suppliers are more easily able to fulfill orders and send the invoice back to the integrated vendor. When the invoice arrives, DSSI also has tools to automate that process. DSSI Capture™ eliminates manual entry, reduces errors, and speeds up payment cycles, leading to significant cost savings and operational improvements. It also allows organizations to capture their regional and local vendor spend for reporting and decision making.
AI in Healthcare Supply Chain Automation
AI-powered procurement solutions optimize profitability and efficiency in healthcare supply chain automation. The DSSI procurement services team can transform healthcare supply chain operations with machine learning algorithms and next-generation AI tools to determine the most cost-effective solutions. These AI tools analyze vast amounts of data to identify patterns, predict future needs and recommend the best purchasing strategies. This not only enhances efficiency but also ensures that procurement decisions are data-driven and aligned with organizational goals.
Leverage the Power of the DSSI Healthcare Supply Chain Automation
The Direct Supply DSSI platform offers a comprehensive suite of tools designed to optimize every aspect of the procurement process. From electronic invoicing management to real-time spend analytics, the DSSI platform empowers healthcare providers to streamline their operations, reduce costs and improve efficiency. By leveraging the power of the DSSI healthcare supply chain automation and eProcurement P2P, healthcare providers can achieve exceptional process improvement and strategic savings.
Automated Supplier Management
Effective supplier management is critical to the success of any procurement strategy. The DSSI platform includes features that automate supplier management, making it easier to track supplier performance, manage contracts and ensure compliance with organizational standards. By automating these processes, healthcare providers can build stronger relationships with their suppliers, negotiate better terms and ensure that they are getting the best value for their money.
Enhancing Strategic Sourcing
Strategic sourcing is a key component of effective procurement. The DSSI platform provides tools and insights that help healthcare providers identify the best suppliers, negotiate favorable terms and manage supplier relationships. By leveraging data analytics and AI, the platform enables healthcare providers to make informed sourcing decisions that drive cost savings and improve efficiency.
Optimizing Inventory Management
Effective inventory management is essential for ensuring that healthcare providers have the right products in the right quantities at the right time. The DSSI platform includes advanced features that support healthcare providers in tracking inventory levels, predicting future purchase needs and optimizing reorder points. By automating inventory management, healthcare providers can reduce the risk of stockouts and overstocking, save on storage costs and minimize waste.
Driving Continuous Improvement
Continuous improvement is a core principle of effective procurement. The DSSI platform provides tools and insights that help healthcare providers identify areas for improvement, implement changes and track the impact of those changes over time. By fostering a culture of continuous improvement, healthcare providers can ensure that their procurement processes remain efficient, cost-effective, and aligned with organizational goals.
The new features added to DSSI in just the past two years have already driven positive outcomes for our customers. ContractWatch, our contract management tool, informs organizations that seek visibility into contract negotiations, expirations, renewals and overall compliance.
Our real-time product availability and product alternate functionality protects organizations during periods of supply chain volatility. The additional support helped prevent more than 200,000 product stock outs in 2023 alone.
Another helpful feature for purchasers using DSSI is the off-order guide substitute. This tool recognizes when a purchaser is trying to buy a product that does not meet the requirements of contractual pricing as specified by their organization. It then recommends a similar alternative that is in the company order guide as a replacement.
Customer Success Stories
Many healthcare providers have already experienced the benefits of the Direct Supply DSSI. Recently, a large, national healthcare organization used DSSI to improve its invoicing and procurement management processes, resulting in more efficient procurement and significant cost savings of over $1 million. DSSI success stories demonstrate the power of the platform to transform procurement process automation and drive strategic advantages.
The Future of Healthcare Procurement
Developing and maintaining an automated supply chain can significantly improve eProcurement for healthcare providers. The Direct Supply DSSI software platform incorporates automation as a key value proposition, offering a comprehensive suite of tools and features designed to optimize every aspect of the procurement process. From electronic invoicing to advanced inventory management and AI-powered analytics, the DSSI platform empowers healthcare providers to achieve exceptional process improvement, cost savings and strategic advantages.
The DSSI platform provides the tools and insights needed to navigate the complexities of healthcare procurement, ensuring that healthcare providers can focus on delivering the highest quality care to their patients and residents. With Direct Supply as a trusted partner, healthcare providers can confidently move towards a future of optimized procurement and strategic success.
