Leveraging Artificial Intelligence in Healthcare Procurement

A Direct Supply® DSSI™ Case Study

Example of AI in Healthcare Procurement

Artificial intelligence (AI) is a large topic of conversation due to the introduction of numerous AI tools flooding the media. The implementation of AI across industries to save time, support during labor shortages and streamline processes is a common theme, but how can AI be used in healthcare?

Direct Supply® DSSI has been providing AI driven solutions to healthcare procurement professionals since 2021. Learn more about this AI technology and the impacts it is having on the healthcare procurement process. 

Navigating challenges with AI healthcare procurement solutions 

Traditionally, the procurement process for the healthcare industry was manual and sometimes driven by paper purchase orders and invoices. Supplier contract management and compliance was manual and oftentimes not followed effectively. There were few healthcare procurement best practices in place, and because of this healthcare providers faced numerous challenges, including:

  • Limited staffing to complete necessary procurement tasks
  • Lack of visibility into spend across categories in their healthcare organization
  • Competing priorities to support residents and patients and driving business results
  • Supply chain changes and shifts in market trends 

The Direct Supply DSSI team identified the need for a technology solution to solve these challenges for healthcare providers. Read on to see how AI can be used in healthcare for a strategic advantage and significant savings.


How to use AI in procurement: Direct Supply DSSI’s approach

The Direct Supply DSSI platform is a cutting edge healthcare eprocurement system powered by over 25 years of healthcare purchasing data. The platform is powered by millions of supplier product data points and identifies trends in the supply chain. This advanced technology uniquely positioned Direct Supply DSSI to implement powerful AI in the healthcare procurement process. 

This procurement AI software solution is powered by data science, machine learning and proprietary artificial intelligence technology. 

AI in procurement examples

Some of the key elements of this AI in procurement include:

  • Alerts sent to providers and suppliers when there is an uptick in orders for a certain product, allowing for better preparation
  • Product substitution options when an in-demand item is out of stock.
  • Proactive cost savings recommendations presented nightly based on current order guides and purchasing behaviors

This AI-driven program provides visibility into the volatile healthcare supply chain, establishes healthcare best practices and drives cost savings. 

Result: AI technology in healthcare for the win

Direct Supply DSSI currently manages over $6 billion in healthcare procurement spend. Powered by the DSSI platform and proprietary OGM.ai technology, using artificial intelligence in procurement provides in-depth spend analysis and high quality savings recommendations for healthcare procurement professionals to consider. 

In total, powered by the OGM.ai technology and DSSI platform, Direct Supply DSSI saved healthcare providers over $630,000,000 in 2022

Want more AI in healthcare procurement examples? Learn more about Direct Supply DSSI with our case study “Healthcare Procurement Wins Driven by Artificial Intelligence“, or read our blog “Artificial Intelligence and Implementing AI in Healthcare Procurement“. 

The OGM.ai technology of Direct Supply DSSI has presented almost 28,000 recommendations in 2023 and has driven millions in annualized savings for it’s customers.

Unlock Operational Efficiencies Today

Request a demo of the cutting-edge Direct Supply DSSI solution today to see the technology in action!