The impact of building management on daily life 

The feel of a community often comes down to the details, such as temperature and lighting. When these systems run smoothly, residents are more comfortable, and operators can better manage one of their largest expenses: facility operations. 

That’s why many operators use AI solutions to optimize efficiency and reduce waste. Tools like the TELS® Platform support preventive maintenance, real-time issue tracking, and faster work order resolution, helping ensure comfort and safety stay consistent. 

How AI enhances comfort and efficiency in senior living 

Artificial intelligence in senior care operations extends far beyond clinical applications; it’s becoming a cornerstone of how modern senior living communities operate. By turning building data into real-time insights, AI solutions help leaders create environments that are more comfortable and reliable every day. 

Energy optimization

AI-enabled energy management systems monitor HVAC, lighting, and water use to balance comfort with efficiency. Smart adjustments to temperature and ventilation keep residents comfortable while minimizing energy waste, helping communities achieve both sustainability goals and cost savings.

Preventative maintenance

Through predictive analytics, AI detects small shifts in equipment performance that signal potential issues before they become costly failures. This proactive insight allows maintenance teams to schedule service in advance, avoiding resident disruptions and reducing emergency calls. Over time, this approach builds a more stable operation, protecting asset life while reinforcing financial and operational consistency.

Communities actively using TELS® asset management features have experienced a 14% reduction in emergency service calls*, proof that proactive maintenance drives measurable results. 

Smart work order automation

AI can analyze incoming maintenance requests and prioritize them by urgency and safety impact. This helps ensure that high-priority issues, such as HVAC failures or water temperature variances, are addressed first, while routine tasks are efficiently scheduled. CMMS (Computerized Maintenance Management System) software like TELS Platform already helps teams streamline this process, reducing delays and improving overall responsiveness.

Robotic and automated cleaning systems

Automation in housekeeping is transforming the consistency and reliability of environmental services. AI-powered tools, including TELS® Housekeeping, help communities standardize daily cleaning tasks, balance staff workloads, and maintain high quality across every room and shift. Robotic vacuums and smart disinfection systems maintain high standards of cleanliness while easing the workload on staff, a major advantage amid ongoing labor shortages. The result is a safer, cleaner environment that boosts both resident satisfaction and staff morale. 

Together, these applications show how AI and automation tools quietly improve quality of life behind the scenes. When buildings run smoothly, residents feel the difference. A consistent sense of comfort and cleanliness, supported by dependable service, contributes to a more welcoming and dignified living experience. 

Benefits for staff and residents 

Automation frees staff from constant troubleshooting, giving them more time for meaningful engagement and proactive planning. Predictive insights help maintenance teams prevent small issues before they become disruptions; while housekeeping automation tools help ensure consistent cleanliness. 

For residents, these advancements translate into steady comfort, faster service, and a sense of reliability that builds trust. 

This blend of AI use in buildings operations and technology for seniors reinforces a simple truth: when systems run smoothly, people thrive. 

Challenges of adoption in senior living 

Even with clear benefits, implementing new technology in senior living takes thoughtful planning. Each challenge offers a chance to build a smarter foundation for the future. 

Aging infrastructure

Many communities rely on legacy systems that weren’t built for digital integration. Modernizing doesn’t require a complete overhaul; small, strategic upgrades make an immediate impact. Start by connecting key systems like HVAC or water management to tools such as TELS Platform for real-time monitoring and insight. 

Data accuracy and readiness

AI is only as reliable as the data behind it. Standardizing preventive maintenance, inspection tracking, and asset logs help communities strengthen their data foundation and generate more accurate, actionable insights. 

Cultural adoption and team confidence

Introducing new technology takes collaboration and trust. Engaging staff early helps teams see how automation supports their expertise. Celebrating small wins like fewer emergency calls and faster response time builds momentum and confidence. Over time, teams see how AI applications support their expertise and simplify daily operations. 

The future of AI in senior living communities 

Future trends in senior care point toward fully connected ecosystems. Senior living technology solutions will increasingly integrate energy management, housekeeping automation, and asset data into unified dashboards, giving leaders a complete picture of building performance and operational efficiency. 

With tools like TELS Platform and AI-driven analytics, communities can respond more effectively to everyday challenges by aligning operational data with real-time decision-making, improving both the resident experience and staff performance. 

The bottom line 

With smarter insights and stronger outcomes, the benefits of AI in senior living are becoming increasingly clear. Communities that adopt AI-driven building management today are creating a foundation for lasting comfort, efficiency, and resident satisfaction. 

At Direct Supply, we’re committed to transforming innovation into practical solutions to help senior living teams run more smoothly with tools that support safer, more efficient, and more welcoming environments for residents and staff alike.  

The role of building operations in survey readiness 

Reliable building performance is essential for regulatory compliance and inspections. Building maintenance teams must manage HVAC performance as well as water temperatures and life safety systems, all of which are major focus areas during surveys. 

Alongside staffing and food, building operations represent one of the top three expenses in care environments. To control these costs while safeguarding compliance and safety, forward-thinking providers are adopting AI-driven tools that streamline operations and uncover new efficiencies. 

The TELS® Platform already helps providers schedule inspections, document work, and centralize compliance reporting, all key to maintaining survey readiness and safety. 

How AI supports compliance and safety in SNFs 

In skilled nursing, compliance and safety are non-negotiable. A single missed inspection or system failure can trigger citations in addition to disrupting care and jeopardizing trust. AI tools and automation technologies now offer maintenance and facility leaders a smarter way to stay ahead, turning reactive work into proactive protection. 

Proactive maintenance powered by predictive analytics 

AI tools can analyze equipment data from HVAC systems, boilers, pumps, and refrigeration units to detect subtle changes that often go unnoticed. By identifying at-risk assets before they fail, teams can schedule timely service and avoid emergency calls that strain both budgets and staffing. Predictive insights also extend asset life, helping communities make the most of every capital investment. 

Compliance-driven automation

Survey readiness depends on consistency, and automation helps ensure nothing slips through the cracks. AI can automatically prioritize safety-critical work orders, flag missed inspections and verify that documentation is complete before surveys. With tools like the TELS® Platform, communities maintain real-time visibility into equipment status and fire protection logs, along with temperature data, helping ensure every system meets regulatory standards year-round. 

AI-driven HVAC optimization at Sherbrooke Village delivered a 20–30% reduction in HVAC-related energy use and 15–25% overall utility savings, while improving indoor air quality and compliance with F-Tag 584 standards. This initiative demonstrates how predictive insights and automation can strengthen compliance in addition to comfort and safety; key outcomes every skilled nursing community strives to achieve. 

AI-driven asset lifecycle planning

Knowing when to repair versus replace is one of the toughest calls facility leaders face. AI simplifies the decision with data. This empowers leaders to align operational budgets with safety priorities and capital project goals. 

Across the country, communities using TELS Platform are seeing a measurable impact, from fewer emergency service calls and reduced survey deficiencies to stronger documentation and improved uptime. The result: stronger compliance and smoother operations that build confidence across your team and protect everyone in your community. 

Benefits for staff and residents 

The heart of every skilled nursing facility is its people, both those providing care and those receiving it. AI in healthcare operations is built to empower, not to disrupt, that essential connection. 

For maintenance and environmental services teams, AI takes on time-intensive monitoring, scheduling, and reporting. With less time spent on manual work, teams can turn their attention to advancing safety and operational excellence. Leaders gain visibility across multiple systems, enabling smarter decisions and fewer surprises. 

For residents, these improvements translate directly into comfort and security. Reliable building systems mean stable temperature and safe water quality. They also ensure a calm, consistent environment, all critical to quality of life. Preventive maintenance reduces downtime and eliminates the frustration of repeated disruptions. 

Together, these advancements create a powerful ripple effect: a more resilient care environment, lower operational stress, and greater confidence across the entire community. By combining human expertise with intelligent automation, skilled nursing teams are redefining what operational excellence looks like in senior care. 

Barriers to adoption 

Even with clear benefits, adopting new technology in skilled nursing takes thoughtful planning. Each challenge presents an opportunity to build a stronger, smarter foundation for the future. 

Aging infrastructure

Many communities rely on legacy systems that weren’t built for digital integration. Modernizing doesn’t have to mean full-scale replacement. Start with high-impact systems like HVAC or water management. Incremental upgrades create immediate operational wins and pave the way for broader integration. 

Data accuracy and readiness

AI is only as strong as the data behind it. Inconsistent or incomplete information limits insights, but the solution lies in consistency. Using the TELS® Platform for preventive maintenance, inspection tracking, and asset management helps standardize data collection, giving AI a reliable foundation for precise, actionable recommendations. 

Cultural adoption and team confidence

Building trust in new tools takes time. Involving maintenance leaders, frontline staff, and administrators early helps teams see how automation supports their expertise. Celebrating small wins like fewer emergency calls and faster repairs or stronger documentation builds momentum and confidence. Over time, teams recognize how AI applications amplify their impact, freeing them to focus on what matters most: resident well-being. 

The future of AI in skilled nursing facilities 

AI in senior care is advancing rapidly, and skilled nursing is uniquely positioned to benefit. Soon, AI-driven automation will unify insights from across the operation. This will connect the physical environment with staffing patterns and resident outcomes to enable faster, more informed decisions. 

Emerging innovations like robotic cleaning, automated housekeeping tools, smart disinfection, and integrated HVAC controls are already changing the way communities manage cleanliness and air quality. Tools like TELS® Housekeeping now bring these same advantages to environmental services which help simplify scheduling, track quality, and ensure every room meets consistent standards across shifts. These technologies lighten staff workload while strengthening compliance and resident safety. 

At Direct Supply, we’re focused on bridging innovation with practicality, delivering AI solutions and survey-ready tools that help care teams stay compliant and future-focused. The goal is clear: enable safer environments, stronger operations, and better outcomes for every resident. 

The bottom line 

With fewer emergencies and stronger compliance outcomes, the benefits of AI in senior care operations are becoming increasingly clear. Skilled nursing communities adopting AI-driven building management today are setting the stage for a future of greater safety and operational resilience.  

As innovation continues to advance, leaders who explore these tools now will be best positioned to improve outcomes, extend asset life, and deliver exceptional care environments. 

Proof senior care foodservice is ready for AI innovation 

Dining operations in senior care are among the most complex in any care environment. From clinical compliance to menu planning to procurement, foodservice teams navigate numerous challenges requiring smarter, faster solutions. 

AI is already addressing key issues such as: 

• Manual and reactive menu planning 
• Unpredictable inventory management 
• Staffing gaps and inconsistent quality 

To scale effectively and deliver personalized experiences, AI-driven tools are becoming essential in senior care foodservice. 

In addition to software intelligence, foodservice robotics can play a critical role in managing labor-intensive routines like food running, bussing, and tray passing. These tasks, often repetitive and injury-prone, are ideal candidates for automation. When paired with AI-driven planning, robotic solutions multiply efficiencies and relieve pressure on frontline teams. 

Communities are already seeing measurable impact. One dining manager at the Front Porch Center for Innovation and Wellbeing reported, “Our overtime went from $13,800 down to $7,145 from June to July. We are seeing a declining trend in our OT [because of the robots].”

Where AI is making an impact, and what’s next 

While still in the early stages, AI applications in foodservice are rapidly gaining traction. Here’s where momentum is building and how these solutions might evolve:

1. Adaptive menu creation

Today: AI-powered platforms use real-time product pricing and availability to help communities create cost-effective, resident-centered menus. 

Tomorrow: Menus may adapt daily based on real-time feedback, seasonal ingredients, and biometric data from wearable devices.

2. Predictive inventory and procurement

Today: Tools like Direct Supply® DSSI™ deliver real-time ingredient pricing and availability, helping you source from preferred vendors at the best value. When an item is unavailable, DSSI recommends contract-compliant, cost-effective alternatives, ensuring uninterrupted service and optimized spend. 

Tomorrow: AI could merge supplier inventory, pricing trends, and community events to predict needs proactively.

3. Intelligent staffing and workflow support

Today: AI helps align staff schedules with peak demand. 

Tomorrow: AI might recommend task shifts, identify training needs, and anticipate prep time spikes to improve team performance.

4. Robotics in meal delivery and bussing

Today: Autonomous food delivery and robotic bussing, like Servi Plus, can help reduce physical strain and speed up service in dining areas. 

Tomorrow: Foodservice robotics may coordinate directly with AI systems to anticipate traffic flow, prioritize delivery routes, and adjust timing based on dining room capacity. 

Physical automation: Foodservice robotics in senior care

As AI enhances planning and forecasting, foodservice robotics tackles operational challenges at the point of service. These technologies take on repetitive, labor-intensive tasks that often strain dining teams, especially during peak hours. By integrating automation into dining workflows, care environments can boost efficiency, ease physical demands, and deliver more consistent mealtime experiences. 

Key applications include: 

• Autonomous meal delivery: Transports plated meals from kitchen to dining areas, freeing staff to focus on higher-value care. 
• Automated bussing systems: Streamline cleanup and dish room workflows, reducing post-meal bottlenecks. 
• Robotic tray service: Delivers drinks, snacks, and hors d’oeuvres on preprogrammed routes to enhance social dining occasions. 

Real results from AI-driven procurement 

AI is already delivering measurable results, and the proof is right here. Communities using Direct Supply Procurement Services see significant savings and efficiency improvements through the application of the OGM.ai™ order guide management tool. OGM.ai streamlines procurement by centralizing order guides, helping teams identify preferred products down to the invoice level, ensure consistency across facilities, and even resolve discontinued items automatically. When supply runs short, OGM.ai recommends equal or lower-cost alternatives, reducing canceled orders by nearly 50% and saving staff valuable time. 

What’s ahead: expanding benefits of AI in senior dining 

As AI moves beyond procurement, its potential to transform operations continues to grow: 

For residents: 

• Tailored menus meeting individual needs 
• Nutritional precision supporting chronic conditions 
• Higher satisfaction through tailored, well-executed dining experiences

“65.4% of residents believed that the robots improved their overall dining experience” 

– Front Porch Center for Innovation and Wellbeing 

For staff: 

• Automated compliance monitoring 
• Easier inventory management and ordering 
• More time for creativity and resident engagement 
• Robotics that automate repetitive, physical tasks like food running and bussing. 
• Fewer physical injuries and more time to focus on personalized service 

For providers: 

• Accurate forecasting and tighter budget control 
• Actionable insights into menu performance 
• Streamlined reporting for compliance and quality initiatives 

How to prepare for AI in foodservice 

2. Focus on high-impact areas 

Tackle high-cost challenges like food waste and pricing volatility first. AI tools can help reduce wasteful spend by identifying off-contract ingredient purchases and recommending compliant alternatives aligned with your order guide.  

4. Empower your team 

Involve your culinary team early and provide hands-on support. Show how AI frees up time and improves outcomes without replacing jobs. 

Looking ahead 

AI is no longer optional in senior care foodservice, it’s becoming central to strategic planning. At the intersection of AI, automation, and clinical nutrition, new technologies help providers work smarter, improve satisfaction, and achieve better outcomes. 

At Direct Supply, we’re developing the next generation of AI tools to automate foodservice workflows, enhance resident satisfaction, and strengthen operational outcomes. 

Whether it’s AI for procurement and menu planning, or robotics for food delivery, now is the time to begin integrating AI and automation into your foodservice operations.   

Understanding AI’s supportive role in clinical care 

AI technology is increasingly being designed to support and empower care teams, and as the technology develops, new capabilities will continue to surface. It can streamline time-consuming tasks, automate repetitive processes, and provide critical insights, allowing care teams to spend more time delivering meaningful, person-centered care. Thoughtfully integrating AI in senior care helps assisted living and memory care communities enhance quality, efficiency, and regulatory compliance while maintaining the personalized care that individuals and families value most. Just as important as these benefits is building trust from the start. That means implementing AI solutions on secure platforms, being transparent about how data is used, and providing the training care teams need to feel confident using new tools. 

Enhancing direct resident care with AI applications in healthcare 

Medication management is one of the most complex and critical workflows in assisted living and memory care. While support levels vary from full administration to prompting and self-management, AI is beginning to show real promise in enhancing this process. 

Early innovations in this space are: 

• Automating medication tracking: Streamlining medication workflows from ordering through administration to improve accuracy and compliance 

• Delivering real-time alerts: Mobile apps and smart devices provide timely reminders to promote adherence 

• Reducing risk of errors: AI-driven systems can support safer practices by offering prompts, confirmations, and documentation support 

At Direct Supply, we’re actively exploring AI’s evolving role in this area to help providers enhance safety, reduce workload, and support regulatory requirements. While these innovations are still emerging, we’re focused on identifying and shaping practical tools that will drive meaningful change. 

Unique opportunities with AI in assisted living EHRs 

Electronic health records (EHRs) are increasingly an invaluable tool to support assisted living providers, and AI is playing an important role in that by: 

• Resident care insights: AI is detecting trends and patterns in resident care and staff workflow, offering valuable insights into staff time allocation and resident care needs. For example, DS smart® enables vitals to transmit directly to the EMR in under 2 minutes, complete with accurate timestamps. This allows care teams to respond faster, reduce errors, and capture a more complete picture of resident health, supporting earlier interventions and data-informed decision-making. 

• Accurate billing and resource management: By understanding how staff spend their time, AI technology helps optimize resident billing based on actual care provided. Because these systems manage sensitive resident and operational data, it’s essential to choose solutions that meet rigorous security requirements, like HIPAA compliance. Clear, measurable performance metrics help ensure these tools deliver value without compromising privacy. 

• Optimized staffing decisions: AI-driven analytics can inform staffing decisions, helping management balance resource allocation against resident needs and regulatory staffing requirements. 

AI’s role in improving clinical operations 

In assisted living and memory care, clinical operations must remain responsive, agile, and supportive. AI operational tools are starting to streamline workflows and show promise for simplifying regulatory compliance by: 

For example, pac-IQ® is an AI-enabled referral management platform designed specifically for senior care providers. It helps care teams streamline one of the most complex areas of operations: care transitions from hospitals to assisted living or memory care. By reducing referral processing from hours to minutes and automating intake and eligibility workflows, pac-IQ® enables faster, more informed decisions. It integrates with existing platforms, supports HIPAA compliance, and helps staff keep residents and families at the center of the process. 

A phased rollout with thorough testing helps ensure these tools operate effectively without disrupting daily workflows. Pairing adoption with ongoing education builds trust, helps teams understand AI’s capabilities and limits, and reinforces how resident privacy is safeguarded. 

Your trusted partner in AI-driven senior living innovation 

At Direct Supply, we help assisted living and memory care communities successfully harness AI technology to optimize resident care, empower care teams, and confidently meet evolving state regulatory requirements. Our innovative senior care technology solutions are designed with your care teams in mind, ensuring technology always enhances human connections and outcomes.

Defining AI’s role in clinical care 

AI in clinical care encompasses technology designed to simplify workflows, provide real-time decision support, and improve resident outcomes.  

AI is currently best viewed as an assistant to streamline routine tasks, and as these tools mature, we may see them take on even more sophisticated functions alongside care teams. It complements human judgment, empowering caregivers with critical insights without diminishing their essential role in compassionate, personalized care. As these tools evolve, ensuring they’re implemented with strong privacy safeguards and transparent performance measures will be key to maintaining trust between caregivers, residents, and families. 

Transforming documentation and EHR usability

AI enhances Electronic Health Record (EHR) documentation to ensure accuracy, efficiency, and usability. New automation tools and early AI-assisted documentation capabilities are being explored and deployed by EHRs to: 

• Validate completed clinical tasks quickly and accurately, ensuring thorough documentation and compliance. 

• Reduce the administrative burden on care teams, minimizing burnout and increasing confidence.  

• Improve data entry accuracy, minimizing costly errors or omissions. 

These advances depend on secure, HIPAA-compliant systems that protect resident information while streamlining workflows. As EHRs integrate AI, communities will also need clear metrics to validate the accuracy and reliability of automated documentation. Accurate and complete documentation means improved regulatory compliance, and reduced liability and risk for providers. 

This innovation is already improving outcomes today with DS smart®. It connects directly to your EMR, capturing vitals and clinical data in real time, eliminating duplicate logins and retyping. 

With DS smart®, your skilled nursing community can: 

• Eliminate redundant manual data entry for up to 40% time savings and fewer errors 

• Improve compliance with direct, at-the-source documentation 

• Access real-time data to enable faster, more informed decisions 

• Standardize workflows across staff and shifts so your team can focus on resident care 

As AI continues to evolve, solutions like DS smart® demonstrate the power of applied technology to enhance care team performance, streamline documentation, and improve care delivery. 

Enhancing clinical decision support 

Clinical decision support (CDS) powered by AI offers timely, informed assistance. Emerging AI-driven CDS systems can already: 

• Rapidly analyze vast clinical data, identifying trends or risks caregivers might overlook. 

• Proactively manage resident conditions, such as identifying individuals at risk for hospital readmissions, enabling early intervention. 

• Balance and standardize clinical knowledge, ensuring consistency in care delivery. 

One practical application is pac-IQ®, an AI-enabled referral management platform that helps streamline care transitions. By reducing manual review time from hours to minutes and automating eligibility checks and documentation, pac-IQ® supports fast, accurate admission decisions, empowering clinical teams with the data they need, exactly when they need it. 

These kinds of AI-enabled tools strengthen decision-making while enhancing operational efficiency. Building caregiver trust in these systems requires ongoing training and transparent performance measures to ensure accuracy and adoption. 

Revolutionizing medication management 

Medication management remains one of the most time-consuming and high-risk areas of clinical care. From ordering to administration, the process is complex, and any misstep can impact resident safety. 

AI is beginning to reshape this critical workflow with emerging capabilities that show strong potential to: 

• Automate medication workflows to reduce manual steps and minimize errors 

• Act as “another set of eyes,” offering accuracy checks, side effect alerts, and documentation reminders 

• Arm caregivers with the right information at the right time, accelerating issue resolution and ensuring timely medication administration 

While many of these tools are still in development or early adoption stages, they highlight a growing trend: using AI to reduce risk, increase accuracy, and free up time for hands-on care. At Direct Supply, we’re actively exploring and evaluating these innovations to help skilled nursing communities prepare for what’s next, while continuing to focus on safe, efficient care delivery. 

Building intuitive, supportive care environments 

AI extends beyond clinical systems to transform care environments. Integrating AI with building management systems provides: 

• Smart sensors and ambient monitoring technology that alert staff to safety concerns, like falls, without intrusive monitoring. 

• Predictive analytics anticipating resident needs, proactively adjusting lighting or climate control for comfort. 

• Enhanced workflow management, guiding caregivers through tasks based on real-time data. 

With any technology that collects and analyzes resident data, robust privacy protections are essential. Communities should pair these innovations with clear protocols and visible outcomes to reassure staff, residents, and families.  

As AI capabilities evolve, often faster than anticipated, we expect to see new applications that contribute to more intuitive and responsive environments that improve outcomes, significantly impacting resident safety, comfort, and operational efficiency. 

Robotics and adaptive technology 

AI-enabled robotics are emerging as powerful tools to address workforce challenges, reduce repetitive strain on caregivers, and enhance the resident experience. As this technology evolves, it’s increasingly being used to: 

To help communities turn these possibilities into outcomes, Direct Supply offers robotic meal delivery and cleaning solutions. These tools enable care teams to spend more time on resident care, while increasing consistency, reducing task load, and supporting a safer environment. 

These applications demonstrate the growing potential of robotics in skilled nursing and reflect our commitment to identifying and implementing practical innovations that improve care quality and operational efficiency. 

Your trusted partner in AI-Driven innovation 

Direct Supply partners with skilled nursing communities to navigate the rapidly evolving AI landscape, delivering solutions that address today’s needs while adapting to the opportunities and challenges still on the horizon. Our deep understanding of clinical and regulatory challenges uniquely positions us to help your community effectively leverage AI, improving resident outcomes and operational efficiency. 

Agility in Procurement

When I think about procurement agility, what comes to mind is typically buzzword-sounding methodology. But agile food service procurement, with its roots in project management theories, is a transformative approach that enhances efficiency, responsiveness and adaptability within the procurement process. This approach ensures that procurement processes are not only streamlined but also flexible to sudden market shifts and emerging trends. When it comes to guiding your procurement teams to become more agile in an ever-changing healthcare landscape, taking a strategic and forward-thinking approach to your procurement is key.

In food service procurement, speed, flexibility and responsiveness are critical components for ensuring optimization and effective operations – here’s why:

• Speed is essential for timely sourcing and delivery of fresh ingredients, which is vital for maintaining the quality and safety of food. 
• Flexibility allows procurement teams to adapt quickly to changing market conditions, such as fluctuations in supply and demand or disruptions in the supply chain. 
• Responsiveness ensures that procurement teams can swiftly address and resolve any issues that arise, such as sudden shortages or quality concerns, minimizing downtime and customer dissatisfaction. 

Together, these attributes enable food service procurement to meet ongoing challenges, sustain operations and deliver consistent value to customers – which is all in a day’s work for the Direct Supply® DSSI™ team.

Key Elements of an Agile Procurement Strategy

Risk Management and Mitigation

At the core of agile procurement is effective risk management. Identifying potential risks early in the supply chain allows for the development of proactive strategies to mitigate these risks. For instance, consider a scenario where a key ingredient’s supply is disrupted due to unforeseen weather conditions. An agile approach would have already identified this risk, with strategies in place to pivot swiftly to alternative suppliers, thereby minimizing operational disruptions.

Adaptive Supplier Relationships

Creating flexible relationships with suppliers is crucial. This might involve scalable contracts that can be adjusted based on demand fluctuations, or collaborative problem-solving approaches that foster mutual trust. These adaptive relationships enable organizations to respond quickly to new challenges without delay.

Technology as an Enabler of Agility

Technology plays a pivotal role in enhancing procurement agility. For example, AI can be used for predictive analytics to foresee supply chain disruptions before they occur. IBM’s AI technology, Watson, leverages AI and machine learning to analyze vast amounts of data from various sources, including weather reports, social media, news feeds and historical data. This enables it to predict potential disruptions in the supply chain before they occur. 

Blockchain technology offers unparalleled transparency, making it easier to trace product origins and manage contracts. If a large-scale grocery retailer was utilizing a combination of blockchain and AI, every point in the supply chain process—from the farm to the processing unit, to the retailer and ultimately to the consumer—could record data on a secure, immutable ledger. This transparency would allow the retailer to trace any food item back to its source in a matter of seconds, enhancing consumer trust and reducing the scope of food recalls.

Implementing Agile Practices in Foodservice Procurement

Cost Savings through Process Streamlining and Efficiency

Lean procurement processes that eliminate redundancies are key to achieving significant cost savings. These streamlined operations reduce unnecessary expenditures, facilitating quicker decision-making and improving response times, which are critical in high-stakes market environments. By implementing AI tools, such as the DSSI platform, customers can complete procurement tasks more efficiently without needing to contact a support agent. This not only saves time and energy but also reduces labor costs and operational expenses. The increased efficiency allows resources to be allocated more effectively, driving overall cost reductions in the procurement process.

Building a Responsive Team Structure

In agile procurement, the dynamism of the marketplace demands a team that is not only skilled but also highly adaptable. Teams must be able to respond swiftly to changes, whether they are related to supply chain disruptions, technological advancements, or shifts in consumer demand. The ability of a team to pivot quickly without losing momentum is crucial for maintaining continuous operations and competitive advantage.

Training and Development for Flexibility

To cultivate a team capable of responding to these challenges, targeted training and development are essential. Training should focus on:

Enhancing Flexibility & Developing Cross-Functional Skills:

• • Scenario-based Training: Implement training sessions that simulate different supply chain disruptions or market changes to help team members practice their response strategies and decision-making skills in a controlled, risk-free environment.
  • Flexible Role Assignments: Encourage team members to take on various roles within the procurement process. This exposure helps them understand different facets of the operation and prepares them to fill in or adapt when needed.
  • Interdepartmental Rotations: Offer opportunities for team members to work in different departments. This not only deepens their understanding of how each part of the organization interacts with the others but also enhances collaboration skills.

Challenges and Solutions in Agile Procurement

Overcoming Resistance to Change

One of the significant hurdles in adopting an agile procurement strategy is the inherent resistance to change. This resistance can stem from within the organization and be complicated by challenges in managing change or integrating new technologies. 

To manage these challenges effectively, organizations should implement a multi-faceted approach:

• Leaders should clearly articulate the benefits of agile procurement through effective communication. Building better supplier relationships and enhancing responsiveness to market changes is key to building out a strategic plan.
• Providing training and education can also alleviate fears and build the necessary skills for agile practices. 
• Engaging stakeholders early and often can foster buy-in and reduce resistance. Involving team members in the decision-making process and addressing their concerns can create a sense of ownership and commitment to the new model. 
• Organizations should adopt a phased implementation approach. Starting with pilot projects can help demonstrate quick wins and provide valuable lessons that can be applied to broader rollouts. 
• Moreover, addressing technology integration issues requires a robust IT strategy. This includes selecting flexible, user-friendly procurement software that can easily integrate with existing systems and providing ongoing technical support. 
• Lastly, cultivating a culture of continuous improvement is essential. Encouraging feedback and iteratively refining processes based on real-world experiences can help sustain the transition and embed agile principles into the organizational DNA. 

By employing these strategies, organizations can effectively navigate the complexities of shifting to an agile procurement model.

Future Trends and Predictions

Preparing for the Unknown

As nice as it would be, I cannot predict the future – but future-proofing procurement processes is crucial for any procurement partnership, DSSI included. Our procurement team stays informed about global trends, investing in ongoing training and maintaining flexible contractual arrangements. This readiness allows our clients to pivot rapidly and efficiently, no matter what the future holds.

By embracing agile procurement, food service companies can enhance their competitiveness and resilience, ensuring they remain at the forefront of industry developments – both now and whatever AI brings us in the future.

How AI Transforms Procurement Operations

One of the most interesting ways AI changes the procurement game is that it automates routine tasks. This in turn delivers actionable insights from a large amount of datasets. It also enhances decision-making capabilities. This transformation enables professionals to focus on strategic activities, driving even greater value.

AI’s real-time and predictive analytics are crucial in identifying cost-saving opportunities in procurement. By analyzing spending patterns and supplier behaviors, AI can suggest changes to purchase timing or quantities. Correspondingly, this capitalizes on pricing fluctuations and discounts. Additionally, AI can identify alternate suppliers or substitute materials that meet quality standards – but at a lower cost. This approach to cost management can lead to substantial savings.

By using AI to monitor supplier performance and compliance continuously, procurement teams maintain more productivity. AI-driven platforms alert teams about contract renewals or compliance issues, which ensures that negotiations and interactions are timely and based on the latest data. This not only helps in maintaining a healthy supply chain but also in leveraging relationships for better pricing and terms.

Overcoming Labor Challenges through AI

Direct Supply® DSSI™ shows how AI can move labor from mundane tasks to more critical functions. This change enhances efficiencies, reduces the potential for human error and allows for a more strategic approach to procurement. Above all, this is important for improved supplier negotiations and inventory management.

By leveraging AI for data analysis and predictive insights, DSSI enables procurement teams to optimize supply chains and respond swiftly to market changes. This integration of AI not only streamlines procurement operations but also plays a critical role in enhancing overall effectiveness of healthcare organizations.

Enhancing Visibility and Formulary Management

AI significantly improves visibility and management within procurement processes; additionally, DSSI solutions offer an excellent example of how AI-driven tools can provide real-time data and insights, enabling better decision-making. 

Tools like DSSI help healthcare procurement teams balance cost and quality. The improved visibility predicts market trends, leading to a more proactive supply chain management approach.

Process Automation and Efficiencies

DSSI demonstrates the real benefits of AI-driven process automation, showing how organizations across industries can achieve greater efficiency and cost savings.

By simplifying processes and reducing manual tasks, our customers are able to lower operational costs and shorten procurement cycle times. This saves hours of busy work and millions of dollars annually. Additionally, these efficiencies result in faster service delivery and a better ability to meet the changing needs of customers. 

Key Considerations for AI in Procurement

When looking into AI procurement solutions, consider platforms like DSSI that offer AI-driven tools. Ensure that any solution you choose can easily integrate with your existing systems and can scale to support future growth. Compliance with regulations is also essential. This will ensure that the chosen AI solution meets your current procurement needs and remains a valuable asset as industry demands change.

Planning Your AI in Procurement Journey

Planning our your journey through discovering how AI can help streamline your procurement processes can be daunting – here’s what we’d suggest:

1. Conduct an internal needs assessment: Engage in a comprehensive needs assessment to identify your organization’s specific procurement challenges and opportunities for improvement. This step helps to clarify how the DSSI AI-driven solutions can be tailored to address your unique requirements, ensuring a more effective transition.
2. Contact us: Reach out to our team to get a personalized consultation on the calendar with our spend management experts.
3. Participate in a demo: Schedule a live demonstration with DSSI to see firsthand how their AI-powered procurement platform operates. This experience allows you to understand the functionality and benefits of the system, including process automation, data analytics and improved decision-making capabilities.
4. Develop an implementation plan: Work closely with DSSI to develop a detailed implementation plan. This plan should include timelines, key milestones, training for your team, and any necessary integration with existing systems. A structured approach ensures a smooth transition to AI-driven procurement, minimizing disruptions to your operations.

Implementing AI and Continuous Improvement

Implementing AI in procurement is just the first step. Ongoing optimization is crucial for maximizing benefits. DSSI helps organizations continuously improve, keeping them at the forefront of procurement technology.

AI-driven analytics minimize manual work and risk, allowing for more strategic decisions and proactive problem-solving. By using the Direct Supply DSSI AI solutions, organizations can maintain a competitive edge and ensure a smoother, more efficient procurement process.

Kickstart AI in Your Procurement Process with Direct Supply DSSI

Embracing AI in procurement offers a strategic advantage, enabling organizations to optimize their processes, reduce costs and improve overall efficiency. DSSI stands ready to guide you through this transformation, offering state-of-the-art, AI-driven procurement solutions tailored to the unique challenges of your industry.

Discover how Direct Supply DSSI can revolutionize your procurement processes with AI. Schedule a consultation today and embark on a journey to operational excellence and strategic advantage.

Improving the Healthcare Procurement Process: Ask the Expert

Tom Swapp, Vice President of Market Development – Acute for Direct Supply® DSSI™, discusses his history with this healthcare procurement challenge, as well as the ways in which he sees the industry solving this problem in the future. 

DSSI: How did your career path lead you to DSSI and to healthcare procurement?

Tom Swapp: I spent an early portion of my career consulting on physician preference items in acute care, one of the largest areas of spend for most hospitals. One thing I noticed early on was that the data hospitals were working with was very confusing and it was never very clean. My team members and I spent untold hours trying to clean up the data in order to draw conclusions. We wanted to levy that to make better decisions going forward.

I realized that if there was a way to have cleaner data, it would result in huge time savings and increased cost effectiveness for the hospitals. Additionally, it could lead to better decision-making in healthcare procurement strategies. 

DSSI: But grappling with that data led to your next move?

Tom: After that focus on PPI, I translated what I had learned in consulting to the hospital side of things in Denver, focused on procurement and strategic sourcing. I led a team of 25+. I experienced first-hand the manual pain of processing requisitions, purchase orders and the resulting integration process with AP. 

There is such a lack of transparency and collaboration between suppliers and providers when it comes to the transaction side of the supply chain. In situations where market research isn’t as accessible or viable, transparency improves efficiency.

DSSI: Where did you go from there?

Tom: My next opportunity was on the GPO side. I went to work for a leader in the space. I oversaw a healthcare procurement consulting team focused on helping hospitals save money. That lack of easily accessible, clean data made it hard to see and implement the savings opportunities we knew were there.

Pain Point: A Lack of Clean Data

Throughout Tom’s career, the main procurement process pain point and healthcare supply chain challenge was clean data. Organizations in his career either withheld data science or underestimated the wide range of actionable insights it could provide. Strategic planning was more difficult without strong data management.. Direct Supply DSSI has the power to help create a streamlined procurement and purchase process with actionable data.

The Three Pillars of the Healthcare Supply Chain

In the healthcare procurement process, the healthcare supply chain can be split into three pillars. Of those three pillars, logistics and sourcing hinge heavily on procurement. Sound management of the goods or services and the vendor master completely dictates data integrity.

1. Logistics (Distributors)
2. Sourcing (GPOs)
3. Procurement (ERPS)

The foundation that delivers real savings and real outcomes is procurement. You can’t have an effective sourcing strategy without really sound procurement principles. Likewise, you can’t have a good distribution strategy without great procurement. 

Additionally, procurement is often overlooked and the data to drive it is difficult to extract. The data is often pulled from an ERP that is not built to optimize for the supply chain.

Optimizing ERPs in Healthcare Procurement

Not all ERP systems are optimized for supply chain and strategically built for procurement sourcing. When trying to extract data from them, item and vendor masters can be messy. Nothing is built in collaboration with the supplier community to allow for greater visibility and coordination. Optimizing and strategically shaping ERPs in healthcare procurement strategies can bring a lot to the table for process improvement.

The Benefits of Optimization

By optimizing ERPs in the healthcare procurement process, organizations can streamline their supply chain operations and improve efficiency. This can lead to cost savings, better vendor management, and ultimately, improved patient care. 

By working closely with suppliers and integrating their systems with ERPs, healthcare organizations can enhance visibility and coordination throughout the procurement process. This collaboration can also lead to better negotiation strategies and improved relationships with suppliers. Overall, optimizing ERPs in healthcare procurement can have a significant impact on the overall success of an organization’s supply chain management.

Successful procurement strategies are the byproduct of an organization mastering their contract management. The contract should dictate the procurement terms and flow and overall, the entire healthcare procurement strategy. A supply chain ERP would be a contract visualization and compliance engine for Health System’s contracts both local and GPO. However, most ERPs don’t contain a rules engine that can be smart enough to drive procurement in an intelligent manner.

The Role of AI in Data-Driven Decision Making 

Artificial intelligence (AI) in healthcare procurement provides another advantage to data-driven healthcare procurement strategies. AI and machine learning can drive savings in the healthcare procurement process. By utilizing AI in healthcare procurement, organizations can streamline their processes and make more informed decisions based on data analysis. AI can help identify cost-saving opportunities, optimize supplier relationships, and improve overall efficiency in the procurement process. 

With automated alerts and recommendations, healthcare organizations can stay ahead of market trends and make proactive decisions to ensure they are getting the best value for their procurement needs.

As technology continues to advance, leveraging AI in healthcare procurement will become increasingly important for organizations looking to stay competitive in the ever-evolving healthcare industry. Discover why AI matters in healthcare in conjunction with your healthcare procurement strategy.

Improving and Optimizing Healthcare Procurement with DSSI

Clean and actionable data can lead to overall procurement process improvement and a streamlined healthcare procurement strategy. When healthcare organizations optimize their spend and can effectively utilize their ERPs, they can unlock true supply chain savings. Products or services move efficiently and effectively, cost reduction soars, and the procurement department can meet their business goals. 

Thanks to the Direct Supply DSSI patented OGM (order guide management) solution, and DSSI Analyze, for the first time ever, healthcare organizations can do just that. See for yourself how DSSI builds an optimized healthcare procurement process that revolutionizes the way organizations make procurement a strategic priority.

What is Artificial Intelligence?

According to Investopedia, “Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.” While that may draw our thoughts towards the aforementioned robots, it’s slightly more complex than that.

Over the past two years, artificial intelligence (AI) has made remarkable strides, revolutionizing various industries with its abilities and innovations. AI-powered tools now analyze vast amounts of data to provide more accurate diagnoses, recommendations and personalized plans. Machine learning algorithms can predict real-world events, track progress, and even suggest preventive measures, enhancing overall business outcomes. Natural Language Processing (NLP) chatbot models, popularized by OpenAI’s ChatGPT, have become a staple for quick and effective customer service.

The beauty of AI is that it is a concept put into play through the use of machines. Computer science developed AI to make it easier for humans to learn from data. However, it is designed only to mimic or simulate how humans think and what their actions may be. Ultimately, AI is not human, though, so there is always room for improvement with AI based decisions – that’s where machine learning comes in.

What is Machine Learning?

MIT Sloan explains that “Machine learning is behind chatbots and predictive text, language translation apps, the shows Netflix suggests to you, and how your social media feeds are presented.” 

The simplest way to think about machine learning is likely by thinking about an algorithm. The example of Netflix is a solid one. Think about how the streaming app begins suggesting movies and TV shows you may like to watch. This happens after it starts to “learn” through your viewing.

So many components are taken into play when it comes to this type of machine learning. First, how much time you spend watching a particular show or genre. Second, your ratings of a film. Third, your saved selections. All of it feeds into an AI that gets “smarter” every time you tell Netflix yes, you’re still watching. 

Machine learning (ML) models are similar to traditional AI algorithms in one regard: the “fuel” used to create them. The amount and size of data sets fed into the model by data scientists is key. When large amounts of data are passed into machine learning models, the predictive analytics become more accurate. This is why diverse data sets with a wide range of demographics are so important to ensuring accurate predictions.

Types of AI

AI has been around since American computer scientist John McCarthy first coined it in 1956. Since then, there has been a springboard of growth, particularly from 2005 to the present. We’ve seen the development of speech recognition, robotic process automation, super computer enhancements and more. Now, the variety of the types of AI solutions are plentiful:

• Purely reactive: this type of artificial intelligence has no memory or data and can only specialize in one area. This is considered “weak AI” (think chess video games).
• Limited memory: this AI system can collect previous data and continue adding it to its “memory”. It can begin making correct decisions despite having a limited reference point. Examples include recommendation algorithms for products and videos.
• Theory of mind: this AI understands thoughts, emotions and can interact socially. The most common examples in the modern day are AI chatbots powered by Natural Language Processing (NLP). Think ChatGPT and Google Bard.
• Self-aware: future interactions of this technology will be intelligent, sentient and conscious. This type of AI is also known as Artificial General Intelligence. There are no self-aware AI currently available, but companies such as OpenAI (developers of ChatGPT) are working towards a functional model.

The Applications of AI in Healthcare

 AI can help in healthcare, and senior living, in the following ways:

• Enhancing surgical procedures through technology that offers a better outcome
• Managing Medicinal dosages and individualized treatment plans
• Providing diagnostic assistance
• Maintaining and tracking medical records
• Managing health insurance claims
• Managing medical product inventory, ensuring contract compliance with suppliers
• Optimizing labor spend and organizational efficiency
• And More!

Use Case Analysis – AI in Healthcare

One of the most significant applications of AI in healthcare is in diagnostics. Recommendation engines, trained on vast datasets of medical images and patient records, are now able to detect diseases with remarkable precision. For instance, AI-powered imaging tools are identifying early signs of conditions like cancer, cardiovascular diseases, and neurological disorders, often with greater accuracy than human experts. This early detection allows for timely intervention, significantly improving patient prognosis.

Personalized medicine is another area where AI and ML are making a substantial impact. By analyzing genetic information, lifestyle factors, and medical history, AI can predict which treatments will be most effective for individual patients. This approach moves away from the traditional one-size-fits-all model, offering tailored therapies that increase the chances of success and reduce the risk of adverse reactions.

Operational efficiency in healthcare facilities is also being transformed by AI. This not only reduces the burden on healthcare staff to complete a specific task, but also enhances the patient experience by minimizing wait times and ensuring the availability of necessary supplies and equipment.

By analyzing historical data and predicting future demand, AI systems can optimize inventory levels, ensuring that healthcare facilities have the right supplies at the right time without overstocking or understocking. This leads to significant cost savings and reduces waste, which is especially important in a sector where resource management is critical.

Moreover, AI enhances procurement by providing insights into spending patterns and supplier performance. Healthcare providers can use these insights to negotiate better terms with suppliers, identify cost-saving opportunities, and ensure they are getting the best value for their purchases. AI-powered analytics help in tracking and controlling expenses, enabling more transparent and accountable financial management.

AI-driven solutions are also enhancing patient monitoring and management. Wearable devices and remote monitoring systems equipped with AI capabilities continuously collect and analyze health data, providing real-time insights into a patient’s condition. This enables proactive management of chronic diseases, reduces hospital readmissions, and supports aging in place for elderly patients.

AI can become implemented as either a tool or software program. It is often designed to make a human employee’s life easier. It can serve as a virtual assistant, its own employee, as a recommendation system, or something more. AI can also cut down on human error through an organized system process that doesn’t get tired and is available 24/7. This is important for healthcare organizations that rely on accuracy and consistency for their patient care.

Why Does AI in Healthcare Matter?

AI healthcare solutions assist caregivers in their daily work to drive efficiency and savings. AI features provide better quality of life for patients and their families. The use of AI automation can help with that. Supply chain optimization, reduced labor, and automated customer service is achievable with the help of AI and machine learning. 

These changes are evident in the customer service and nursing space. AI tools known as natural language processing (NLP) are already helping millions of patients and providers get answers. The most common NLP-powered feature is the chatbot. One of these tools can be seen on almost every healthcare provider homepage.

Direct Supply® DSSI™ has been ahead of the AI curve in healthcare procurement for the last decade. Our track record for successfully implementing AI technology is proven and trusted by many organizations nationwide. We were there before the explosion of AI in the workplace, and we’re here to help out with whatever needs you have in this ever-changing field. Reach out to a specialist today to learn more.