Healthcare Procurement Wins Driven by Artificial Intelligence

Food procurement has been a challenge for healthcare providers. Lack of technology and streamlined processes limited the ability to identify cost-saving opportunities and simplify procurement. Direct Supply® DSSI™ is designed to arm customers with the ultimate partner in procurement. Driven by data, technology solutions and expert collaboration, Direct Supply DSSI provides game-changing results for healthcare providers.

Let’s discuss a real Direct Supply® DSSI™ customer experience to show the true power of this partnership.

Problem: Time Consuming Healthcare Food Procurement

A 77 location Assisted Living organization was spending too much time and money managing their food procurement. Between managing discontinued products, supporting supplier relationships and ensuring communities had what they needed, the procurement team had little time to “do more” to drive positive results for their organization. The team was missing out on table stakes savings opportunities and potential operational efficiencies. 

Approach: Technology-Driven Healthcare Procurement Processes

The organization joined Direct Supply DSSI to get the most out of their food procurement process. After the roll-out of the best-in-class DSSI platform, the DSSI team started providing expert food procurement consulting services through the use of cutting-edge artificial intelligence and over 150 years of collective culinary experience. 

The food optimization process consisted of a team of skilled Culinary Consultants working alongside specialized AI technology powered by millions of lines of organization, supplier and industry data to find opportunities to save money and improve the process for procurement professionals. 

1. The organization and the DSSI team discussed procurement goals and overall healthcare procurement strategy.
2. The proprietary OGM.ai™ technology was activated using order guides on the patented OGM® 3 platform.
3. OGM.ai reviewed millions of data lines to identify potential cost-saving product recommendations.
4. The Direct Supply DSSI team validated the recommendations to ensure accuracy before presenting them to the organization.
5. The organization’s internal procurement team and Direct Supply DSSI consultants discussed the recommendations to determine the next steps.
6. Accepted recommendations were implemented through updated order guides, and change management was carried out at the community level.
7. Implemented changes were monitored, and the DSSI team continued to search for additional savings recommendations to be reviewed and presented. 

This process was repeated across all food categories for the organization including bakery, canned fruit, frozen potatoes, and so many more. 

Result: Significant Cost and Time Savings in the Healthcare Procurement Process

This 77 location Assisted Living organization saw significant cost and time savings due to partnering with Direct Supply DSSI. Some notable results from their initial food optimization include:

• Review of 1826 products across their food order guides (through the OGM.ai technology and the DSSI Culinary Consultant) – all work done behind the scenes.
• Implementation of 1304 of product recommendations provided by the technology and vetted by the DSSI team – a direct result of the partnership of the provider, technology, and Direct Supply DSSI. That is a 71% acceptance rate!
• Savings of $136,475 annually in food categories as a result of the optimization.

The Direct Supply DSSI team supports procurement teams in driving healthcare cost savings and efficiency through the use of artificial intelligence and unparalleled levels of procurement expertise. To learn more, read our blog “Redefining Procurement as a Service with Partnership and Technology“.