Purchasing & Spend Analysis Blog

eProcurement in the Health Care Industry

The health care industry is at a crossroads.  A new government sponsored system is on the horizon, managed care companies are continuously negotiating for lower reimbursement rates, return on investment for research is at a historical low, and new regulations and guidelines constantly result in the need for increased spend.  With so many external pressures, those companies in the health care industry must adapt to not only compete, but also survive, in such a competitive market place.

Some of the adaptive changes that have occurred over the past decade include the merger of physician groups into hospital systems, a focus on acquisition as opposed to research and development, the increased use of mid-level practitioners, and the application of supply chain principles.  More recent innovations include the integration of information systems, the introduction of electronic medical records, and the implementation of electronic prescribing.  All of these changes or investments were undertaken to improve productivity, and ultimately the bottom line.

 

One area that has come under scrutiny within the past few years is the procurement process.  While many aspects of health care corporate activities have undergone drastic changes, the purchasing function has remained largely static.  However, some organizations have started to realize the benefits of streamlining procurement, creating approval hierarchies, and creating transparency in corporate spend.  With an increased focus on consumption and maverick spend, health care corporations can now generate savings in previously non-targeted areas, and subsequently increase total market valuation.

 

Industry standards project spend control through several key functions, inherent to ePMX from Bellwether.  Central tenets of automated procurement include:

• Reduced purchasing costs -- analyze organizational vertical segments to determine best cost to value ratio for all goods and services representing savings of 5-20%.
• Increased Profit - analysts report savings at 5-7% through streamlined procurement processes, the result yielding 30-40% increases in profit.
• Better intelligence - Robust reports on non-payroll spend provide visibility to the corporate procurement landscape, allowing organizations to identify and prioritize savings opportunities.
• Efficiency - Automated order management can reduce the unit cost for processing a purchase order by 60-90%.

Benefits of Software as a Service for Small Businesses|E-procurement

 

The low initial cost of SaaS applications is very enticing to a small businesses and there is no large outflow of capital to set up an application on the computers used by the company. SaaS applications are charged based on the subscription rates per user and any additional charges for storage or bandwidth usage. So the business ends up paying for only the actual use by its employees.

SaaS applications can be used on almost any device that can be connected to the Internet and is not dependent on the hardware quality or storage devices installed on each device. There is little to no learning curve involved especially where employees are already used to working on the Internet.

There is no need for the business to worry about upgrades and patches as the SaaS application provider would be doing these improvements on an almost daily basis and the upgrades would be available to all users at all times. So there is no downtime of computers frequently associated with such upgrades where the applications are installed on the computer.

Most SaaS applications are very easily integrated into any existing software with a business. They can also easily expand their capabilities to cater to any increased usage in an organization once the minimal hardware is in position.

The owner of a small business is easily able to log onto the SaaS applications from wherever he or she is and therefore be in constant touch with the latest data available in the company's storage. This also allows a small business to authorize its travelling representatives to use the IT knowledge of the company from wherever they are.

Bellwether offers its #1 rated modular purchasing software solutions in three ways: to purchase (license), software as a service (SaaS), and Software as a Service-to-own - a newer structure which eventually converts to an only an annual license renewal.

For more information of Bellwether's ePMX and SaaS pricing, contact Bellwether today at 888-698-1398.

Continuous Improvement Process Within Supply Chain|Procurement

Continuous Improvement is critical to the success of the organization's supply management program, As an organization's supply management activities increase in importance in this new business environment these organizations will continue to look at continuous improvement programs as a means of achieving and maintain their supply management advantage. Continuous improvement initiatives can be applied to many of the various supply management components such as disposition/investment recovery, distribution, inventory control, logistics, manufacturing supervision, materials management packaging, product service development, purchasing/procurement, quality, receiving, strategic sourcing, transportation/traffic/shipping and warehousing.

Bellwether Software is a Worldwide leader in procurement software development, providing solutions for organizations that require better controls in spend management, inventory control, requisition approvals, materials receiving and other modules.

Over the past 25 years, Bellwether, by working the way procurement managers do, has helped over 700 organizations implement continuous improvements with Bellwether's procurement software solutions: spend control, vendor analysis, shipment tracking, inventory analysis and much, much more.  

To learn more about Bellwether's web-based ePMX software, call Bellwether today at 866-698-1398.

The Perils of Manual Purchasing Processes

Picture this: You've been given the go ahead to initiate a major project; or perhaps your department is in desperate need of supplies. Now the fun begins, particularly if this is a manual process.

You determine what you need, if it's within your budget and present to your manager for approval. This sits on their desk, buried for too long, and finally comes back to you with multiple changes or a rejection. So you make your revisions and begin the process again, watching your precious request sit on multiple desks.

After the long process for approval you can finally begin to submit an RFQ to your selected vendors, present to management again and go to the purchasing department hoping they will efficiently launch the PO. This results in a long time waiting, a long manual process, valuable employees wasting too much time on what should be an efficient process; and TIME IS MONEY.

You know your company should focus on being profitable and productive in an efficient manner. You know your company needs a way to streamline their purchasing processes. You know you need change.

Why does this have to be so long and so painful? Why can't the process of trying to make money and stay in business be easier, more efficient, and streamlined in a fashion suitable for this new decade? Why is it that the executives have no idea how much money has been spent on non-payroll spending?

Change can be frightening, but the unwillingness to change can be extremely detrimental to the success of your company.

Do your homework, explore your options. Only purchase what you need and make sure the Purchasing Management software you choose has a strong implementation, training and support team; and is Sarbanes-Oxley compliant.

That's what we do at Bellwether.

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Purchase Requisition Software: Is It Right For Your Business?

Managers will appreciate the improved management of inventory, the ability to find the best pricing, the timely delivery of orders and ease of tracking orders. A fully integrated system can cut cycle time in half and save 20% - 50% in administrative costs. Your purchasing software should be Sarbanes-Oxley compliant so Financial Managers can feel assured that complete, detailed audit reports are available to them in real time with just a keystroke. Additionally, the system you select should be a modular system, meaning you can buy what modules you need now and add more as your needs change. It should be able to function as a stand-alone system or it can be integrated with an accounting package to become one large seamless system. A complete system should include the following modules:

• Requisitions
• Receiving
• Request for Quotations
• Inventory
• Purchasing
• Accounts Payable Interface

Requisition Module      

The Requisitions Module (Purchase requisitions) is the first module in the series, and it is the beginning of the purchasing process, providing the basic infrastructure for the cycle of ordering goods and services. While many more modules comprise the complete the series, it is readily apparent how implementation of just the Requisitions Module can help maintain brand consistency while improving the purchasing process.
When evaluating all the features a superior Purchasing Requisition Software should include the following:

• Individual user departments can requisition items directly from on-line catalogs or in free-form mode.

• Requisitions can be imported directly from Inventory module for items at or below their reorder points.

• Purchase requisitions can be printed, or handled without paper.

• When integrated with Inventory module, requisitions for stock items are automatically routed to your warehouse.
     o Stock availability and subsequent stock commitment is performed real-time.
     o If warehoused items are unavailable when requisitioned, the outstanding   
        portion will be automatically filled when re-supply occurs.
     o Disbursement reports identify which items to pull from stock, their stocking
        locations, and delivery information.

• A multi-level, on-line approval process prevents items from being ordered prior to all necessary sign offs.
     o Requisitions are automatically routed by e-mail to the next approver listed in 
       your business rules.
     o If rejected, requisitions can be returned to the original requisitioner with a  
       rejection reason.

• Users can review requisitions on-line and convert them into purchase orders or requests for quotations without re-keying any data.

• Multiple requisitions for similar materials or services can be combined in one order, or a single requisition can be split up into multiple purchase orders for a number of vendors.

• On-line status inquiry and printed status reports make it easy to track the progress of requisitioned items, including expected delivery dates, back-order conditions, and assigned buyers.

• Shows which requisitions are on hold waiting for approval, approved but not ordered, and ordered but not received.

The Requisitions module is just one part of a complete system that supports vendor management, inventory, budgets, contract compliance, receiving, RFQs and other essential procurement processes.

Internet Impact

The impact of the Internet has opened the door for technology. Let's consider the Hospitality Industry as an example and think how this impacts your business as well. In Hospitality 2010, Deloitte, states that technology will become more and more important in the future. It states that technology is the fastest weapon the industry has for material product differentiation and that tomorrow's traveler will be far more influenced by brand. Additionally, Deloitte states that consistency in brand is paramount but not easily achieved because there are so many touch points. That is why a technological approach to solving business issues is needed.
Consistency remains the single most important factor in brand delivery. All successful organizations must ensure everyone in the value chain delivers the brand promise, and the Purchasing Department, especially, can help make it easier for your business to live up to its promises.

Bellwether Software has helped many businesses in the hospitality industry. Purchasing Management eXtra establishes Quality Control that mandates procedures be in place that establish protocols for ordering goods and services that are consistent with the brand image and corporate goals.

Learn more about Purchasing Management eXtra, available in both Windows and Web-based versions, by visiting www.bellwethercorp.com or by calling 502-426-5463.

Bellwether Partners with Anybill: Procure to Pay Solution

Sunny Dronowat, PhD.
Bellwether Software
502-426-5463
Louisville, KY
December 16, 2009

Bellwether Software Partners with Anybill
to create a best of breed Procure to Pay Solution 

Anybill and Bellwether Software are now offering a complete end to end solution that is web based to companies to automate the end to end procurement to pay process.

Louisville, KY: Bellwether Software, a leader in e-procurement systems and solutions for the
healthcare, hospitality, manufacturing and financial services industries has partnered with Anybill to build integration tools that automate the whole procure to pay process with Anybill's On-demand Accounts Payable Automation Software, AnyAP. Anybill has been delivering quality accounts payable automation software and services to organizations throughout the US.

"Integration with Anybill's On-demand AP Automation solution makes ePMX a one of its kind ERP solution that companies can now use to automate their whole procurement to pay process. You can punch out to any vendor site, bring in the items, get it approved, create a PO, create an invoice and send that data electronically to Anybill and your invoice is paid" said Sunny Dronawat, president and general manager at Bellwether.

With this solution, customers can now control their spend; get a complete picture of their long-term and short term cash flow. "This will make a big difference in saving businesses thousands if not millions of dollars using purchasing automation and automated bill approval and payment" added Dronawat.

FROM ANYBILL CEO

"This integration provides a win-win situation for our clients. It completely automates the Procure to pay solution and brings two powerful ERP solutions together," said Anybill's CEO, Matt Voorhees.

About Anybill

Since 1998, Anybill has been developing and delivering the most secure, comprehensive and advanced suite of complete, on-demand accounts payable automation and sales and use tax payment solutions to small and medium sized companies, public accounting firms and not-for-profit organizations. Anybill's unique back office business process enables users to save time and money through workplace automation, instant data visibility, financial transparency, records security, fraud protection and contributions to the conduct of financial audits.

Anybill is based in Washington, DC and has a Western Region office in San Mateo, California. For
more information visit www.Anybill.com.

About Bellwether Software

Bellwether Software is a Louisville KY-based purchasing software company. Operational since 1985,
it's 100% web-based ePMX, used by over 700 customer's world wide, is an easy-to-use and very
reliable purchasing software. Bellwether Software offers affordable, modular and full-featured
procurement and spend analytics software both as traditional and SaaS (Software as a Service) model.

Questions and inquiries should be directed to sales@bellwethercorp.com or to 502-426-5463. Visit Bellwether's website at www.bellwethercorp.com

Purchasing Automation Helps Protect Hospitality Brand Image

Hospitality Managers know protecting their brand image is the most important part of their jobs. Brand image ranks as one of the highest priorities in the industry because it is a reflection of everything companies do. A brand image should be consistent from property to property, reflected in everything from fliers to registration forms to the confections left on the bed pillows. A brand image reflects the perception the public has of the property, and even a subtle shift in perception can affect a property's image and, ultimately, its bottom line. Shifts in perception are largely caused by differences from property to property or even within just one property itself, resulting in brand image changes or brand corruption. Simple things, like the soap used in a property's room in Florida should be the same as the soap used in a property's room in California. Customers expect consistency. They form a certain perception or image of a business, so properties that may be experiencing shifts in image need to review their business processes, especially their purchasing cycles because the purchasing process is an area where image or brand corruption can easily take place.

Brand corruption

Brand corruption is big problem, especially among multiple property businesses because in larger organizations, management orders become less and less clear as they trickle down through the hierarchy. If managers are forced to improvise due to lack of clarity in the purchasing process, brand corruption can easily occur. Maverick spending, spending with unapproved vendors, paying too much - all of these things can start a downward spiral of quality and image if clear cut policies are not in place. As hospitality businesses become more global and, therefore, more complicated to run, manual processes must make way for automated business processes, especially in the area of purchasing. Hospitality businesses that have automated purchasing cycles realize not only brand image consistency, but also process improvement, accountability and huge dollar savings in time and materials.

Brand protection

Purchasing automation takes out the guesswork out of ordering. With parameters pre-set by management, consistent, rules-based software takes over the process of ordering goods and services. Managers place orders through approved catalogs in the software. These management-approved catalogs contain pre-negotiated pricing and volume discounts. Outside of the built-in catalogs, portals exist to allow managers to tap into other catalogs that have been pre-approved. When several properties order from the same vendors, rather that each property ordering from different vendors, economies of scale are reached, and the cost savings is very significant. Because purchasing software takes away the opportunity for maverick spending, substitution, inventory shortages and the like, managers are assured that every item or service the property buys is consistent with the brand image, budget and corporate goals.

Purchasing automation may sound like a revolutionary new idea, but it has been around for almost three decades. In the hospitality industry, automated purchasing systems have historically occupied a low position on the value chain. This is unfortunate because the hospitality industry is the type of business that can really benefit from automating the purchasing process.

Keeping up with purchasing, inventory, supplier management, sourcing, contract management, receiving and other tasks involved in the purchasing process is simply not possible if the facility is on a manual system. This is one big reason why multiple properties get in trouble with brand consistency. The material management process has grown too big and too complicated to run on a manual process. Automating the purchasing cycle can change this, but it requires a paradigm shift - from thinking of purchasing as a unilateral function to promoting its value as the one process in the company that has a complete vision of the entire business and is able to greatly control brand image throughout the organization:

Procurement needs to strategically position itself as the only aspect of the corporation that truly has a 360- degree lens on the entire business. It has a full scope view into the directions of the enterprise because it has touch points with all the internal stakeholders. In addition, with its ongoing dealings with the external stakeholders -vendors - it has additional insight into the marketplace - trends, opportunities and pitfalls. Vendors are often clients and/or competitors, which further enhances the focus on the business lens. (Patricia J. Moser-Stern)

Bellwether Software has helped many businesses in the hospitality industry. Purchasing Management eXtra establishes Quality Control that mandates procedures be in place that establish protocols for ordering goods and services that are consistent with the brand image and corporate goals.

Learn more about Purchasing Management eXtra, available in both Windows and Web-based versions, by visiting www.bellwethercorp.com or by calling 502-426-5463.