Advanced Analytics and Machine Learning Continues to Improve Healthcare Procurement

Today, analytics and machine learning solutions are becoming a part of procurement’s DNA. In fact, according to a survey by Greythorn, nearly three quarters of respondents said they currently leverage advanced analytics to analyze past performance data and predict trends in supply chain expenses. Businesses that have embraced artificial intelligence (AI) and machine learning as part of their core toolset, have experienced reductions in internal costs for procurement, as well as improvements in negotiation abilities with suppliers. 

AI is helping change the face of healthcare procurement, here’s how.

1. Artificial intelligence is automating vendor onboarding

Vendor onboarding can be tedious and time-consuming, but it doesn’t have to be. A recent study found that using AI reduces supplier onboarding time from over six weeks down to just one week—that’s an 85% reduction! With automation at your disposal, you can easily gather information about your vendors through data collection, eliminating manual processes for checking references or running background checks. If you want more information about how vendors perform over time – machine learning algorithms will provide it instantly. So when you want a quick solution for vendor onboarding that saves you both time and money, think automation!

2. Machine learning helps find better prices

It’s no secret that procuring goods and services requires a lot of legwork. One minute you’re searching for new vendors, then another minute you’re negotiating terms and conditions—all while trying to keep track of how much products cost. This process takes up valuable time and resources, which means even small efficiency gains can make a big difference. Fortunately, machine learning solutions are here to help! According to research from Deloitte Consulting LLP, organizations implementing machine learning technology have an ROI of between two to five times the investment in the first year of implementation. 

3. Machine learning helps to forecast and plan

Forecasting and planning is a critical aspect of any business, but without access to historical data, it’s hard to know how to plan effectively. That’s why machine learning is so important—it gives you access to historical data so you can build accurate forecasts. For buyers, it is important that they can forecast future demand accurately, to see whether suppliers will be capable of meeting demand. Machine learning also allows businesses to take a big picture approach to planning, giving them a holistic view of operations rather, than looking at individual events in isolation. 

4. Machine learning is helping you source smarter

When it comes to sourcing, machine learning solutions can help you identify which suppliers are most likely to be a good fit for your company. By analyzing data from all your vendors and across the marketplace, machine learning solutions can determine which suppliers have provided high quality products in the past and which are most likely to do so in the future. This kind of information is invaluable when deciding with whom to do business—after all, if you don’t trust your suppliers, how can you expect them to deliver quality products on time?

5. Machine learning is helping you negotiate better

If there’s one thing that machine learning excels at, it’s finding patterns in data. After all, that’s what machine learning is—an algorithm that finds patterns in data and uses them to predict outcomes. This predictive power can be a huge help when it comes to negotiations. Machine learning solutions can help you understand how your suppliers negotiate and which tactics have proven successful in past negotiations. Armed with that information, you’ll be able to craft a strategy specifically tailored to your supplier, resulting in better deals for everyone involved!

6. Machine learning is helping manage risks

Managing risk is one of the most important aspects of business, but it can be difficult if you don’t know how or where to look for potential risks. Machine learning solutions can help by identifying risk factors in your business and showing you how to mitigate them. The best part? Machine learning solutions can do all of that automatically, so you don’t have to worry about manually identifying risks or putting together a comprehensive risk management plan.

7. Machine learning is helping you optimize

Optimisation is one of those things that’s always on your mind but never quite at the forefront—until something goes wrong! Then it’s time to scramble and figure out the issue, how to fix it, and how to prevent it from happening again. Luckily, machine learning solutions are here to help! They can help you anticipate and prevent issues before they happen, ensuring that your business runs smoothly and efficiently.

8. Machine learning is helping Commercial and Procurement teams plan for expansion

Whether you’re expanding into a new market or adding a product to your current offerings, machine learning solutions can help you plan for success, by telling you how well past expansions have done in similar markets, or with similar products. This information can be invaluable when it comes to planning—for example, if machine learning tells you that past expansions in similar markets have been unsuccessful, maybe it’s time to rethink your expansion strategy!

Artificial Intelligence Tools | Machine Learning | B2B Marketplace | Public Procurement | Tender market | Buyers | Medical Equipment | Contract Tenders | Mitigate Supplier Risk | Medical Technology | Healthcare Data | Contract Bids | Procurement Contracts | Procurement Softwares | Value-based Procurement