What is Artificial Intelligence and How Can You Leverage it for Strategic Savings in Healthcare Procurement?

How can AI help in healthcare procurement?

Integrating AI into procurement allows healthcare purchasing teams to drive greater cost savings, lower operational costs and drive strategic sourcing. AI-driven procurement can streamline processes so senior living and healthcare providers can focus on providing the best resident and patient care.

How does DSSI use artificial intelligence technology?

DSSI™ changed the game from procurement automation to optimization. The platform strives to help healthcare procurement experts utilize technology in a way that humans can’t. We are taking this a step further with AI programming and development. DSSI uses artificial intelligence in procurement and supply chain management to help healthcare organizations by:

1: Boosting efficiency with healthcare procurement software

One way in which the DSSI platform leverages AI to boost efficiency is through its Stock-Outs functionality. The system identifies when a product is unavailable and suggests a similar replacement in real-time, saving the user time during their buying process.

“Humans can’t efficiently process all the data needed to choose the correct products across multiple suppliers and distribution centers. Product availability also changes often, making management nearly impossible,” says Andrew Novotny, Vice President of Product Development and Engineering for DSSI. 

“It’s an arduous problem for a human to solve. The only way we can solve this problem is to look at new healthcare technology trends within artificial intelligence”.

When it comes to healthcare food procurement, there’s constant volatility with products. DSSI uses procurement technology to ensure supply consistency. DSSI’s real-time, AI-driven order guide management (OGM) tool groups items accordingly and shows the best available price based on your closest food supplier. 

OGM.ai™ directly integrates with suppliers’ stock inventory to replace unavailable products with the best available option. You can truly swap-and-save with DSSI’s healthcare food procurement!

2: Driving cost savings with machine learning in procurement

DSSI’s AI engine examines customers’ ordering behaviors to identify recommended products for healthcare based on their individualized ordering algorithm. The system learns user tendencies to make itself smarter, which Novotny believes is in the spirit of AI.

“We’re creating technology to allow purchasers to order what they need quickly and move on with their day,” Novotny says.

DSSI’s machine learning in procurement constantly learns from users’ purchasing behaviors. The DSSI AI system understands the best options for senior living and healthcare organizations to deliver custom procurement savings for each organization.

3: Using AI in spend analytics and procurement cost savings

From a DSSI perspective, Novotny says the two top priorities are enhancing efficiency and helping customers pinpoint savings opportunities. DSSI is using AI and algorithms to aid in rebate processing, a complex relationship between manufacturers, purchasing organizations and distributors. Optimized rebate processing can aid in greater procurement contract compliance.

Novotny says depending on volumes and contract lengths, it may be better for healthcare customers to swap from Product A to Product B because Product B is actually a lower total cost. Even though the initial price might be higher, the rebates based on volume end up making it lower. AI can look at all the variable factors of product purchasing to help determine a lower overall price for the organization

It’s hard to understand procurement cost savings if you can’t visualize them. DSSI’s data visualization tools allow senior living and healthcare organizations to actively see their procurement patterns and sourcing processes. Their spend analytics can help connect cost, spend and purchasing for optimal procurement within the healthcare sector.

“Our tagline is always ‘Taking Cost out of Healthcare,’” Novotny says. “How can we find unique, novel ways to remove costs for our end users? AI is just one of our tools to do that.”

Still in the early stages of the journey, Novotny anticipates there will be many future AI-related additions to help DSSI add even more innovation value in every aspect of the healthcare procurement process and help customers make more streamlined purchasing decisions.

AI in Healthcare Procurement FAQ: