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PROVIDER ESSENTIALS: Purchase Services
Transforming Purchase Services
Spend In Healthcare
Healthcare systems
spend 15–25% of their
supply chain budgets on
purchase services
Yet most have underinvested in managing this spend.
The result billions lost annually due to inefficiencies,
lack of visibility, and outdated processes.
Hospitals overspend by
an estimated 10–15%
per year on purchase
services
labor costs, inflation, and reimbursement challenges,
this is an area no health system can afford to ignore.
The Challenges
Manual Processes
AP staff rekey invoices & with no 3-way match, payments flow without scrutiny.
Non-PO Spend
Large portions of purchase services bypass purchase orders, making ERP tracking impossible.
Poor Data Capture
Invoices are buried in PDFs, misclassified at the GL level, or missing key details
Supplier Practices
Vendors submit 50–60 page invoices, bundle services, and obscure line-item visibility.
Resource Gaps
Few systems have the staff or expertise to manage this spend effectively.
The Opportunity By Category
Purchase services optimization is not about incremental improvements — it’s about transformative savings:
Category
Non-PO Spend
Office Supplies
Document Storage
Courier Services
Waste Management
IT & Software
Marketing
Legal Services
Facilities Management
Travel & Entertainment
Contingent Labor & Staffing
Estimated Savings
6–8%
3–5%
Up to 50%
5–7%
7–9%
10–12%
10–15%
15–20%
3–6%
10–12%
3–5%
Key Levers
Contract compliance, waste
reduction, JIT supply chain
Supplier consolidation,
functional equivalency
Digitization, cloud, pickup
frequency optimization
Service classification,
route standardization
Waste classification,
vendor consolidation
Hardware standardization,
contract optimization
AI-assisted content creation,
spend analysis
Rate card standardization,
document AI for contracts
Maintenance & MRO
optimization
Policy enforcement, anomaly
detection with AI
Rate cards, overtime
compliance, contract discipline
Category
Non-PO Spend
Savings
6–8%
Key Levers
Contract compliance, waste
reduction, JIT supply chain
Category
Office Supplies
Savings
3–5%
Key Levers
Supplier consolidation,
functional equivalency
Category
Document Storage
Savings
Up to 50%
Key Levers
Digitization, cloud, pickup
frequency optimization
Category
Courier Services
Savings
5–7%
Key Levers
Service classification,
route standardization
Category
Waste Management
Savings
7–9%
Key Levers
Waste classification,
vendor consolidation
Category
IT & Software
Savings
10–12%
Key Levers
Hardware standardization,
contract optimization
Category
Marketing
Savings
10–15%
Key Levers
AI-assisted content creation,
spend analysis
Category
Legal Services
Savings
15–20%
Key Levers
Rate card standardization,
document AI for contracts
Category
Facilities Management
Savings
3–6%
Key Levers
Maintenance & MRO
optimization
Category
Travel & Entertainment
Savings
10–12%
Key Levers
Policy enforcement, anomaly
detection with AI
Category
Contingent Labor & Staffing
Savings
3–5%
Key Levers
Rate cards, overtime
compliance, contract discipline
How It Works
SupplyCopia has built a proprietary 8-step
framework to transform purchase services
from a black box into a transparent,
manageable category:
Try It With Your Own Data
For Three Categories
- 1Extract Invoice Data From ERP And CMS.
- 2Digitize PDFs With Document AI To Capture Metadata.
- 3Apply UNSPSC Classification For Standardized Categories
- 4Enrich Missing Details Through The Supplier Collaboration.
Requesting And Integrating Line Item Levels. - 5Integrate Into The SupplyCopia Data Lake
- 6Analyze Spend Using Proven Savings Levers.
- 7Deploy AI Agent Insights To Surface Opportunities
In Real Time. - 8Drive Adoption With Stakeholder Engagement &
Change Management.
Powered By AI: Ask the BEE
What Sets SupplyCopia Apart Is Our AI Agent,
Ask The BEE, Built On The Chatgpt LLM.
Conversational AI
Ask a question and get instant answers with visuals.
Continuous Learning
Improves recommendations over time from invoices & contracts.
Scalable Automation
Eliminates manual classification and accelerates insights.
Transparency
Data-backed lineage builds stakeholder trust.
System Consolidation
Replaces costly, siloed tools with a single integrated solution.
The Bottom Line
Purchase services represent billions in untapped
savings. SupplyCopia’s CQOR methodology and
AI-driven platform empowers health systems to:
