Afternoon Coffee: Raistone Capital, IDS Xchange partnership for healthcare payments; Survey shows 90% of businesses rely on bad supplier data; Key PPE shortages still exist

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Raistone Capital, a provider of accounts receivable finance, and IDS Xchange Services, a procure-to-pay ecommerce platform, announced a partnership to improve the receipt of payments of invoices for healthcare businesses.

The partnership will allow for an automated data exchange between IDS and Raistone, which the companies say can provide frictionless financing, lower costs and larger financing lines. Raistone allocated $1 billion to the program, according to a press release announcing the deal. Healthcare suppliers will no longer need to wait 90 days or more to receive payments for invoicing, the release said.

“This partnership allows us to jointly tackle a huge pain point for healthcare-related businesses. Our groundbreaking, integrated solution automates everything from invoicing through accelerated payments to healthcare suppliers,” Dave Skirzenski, CEO of Raistone Capital, said in the press release. “Paying healthcare suppliers quickly will help these vital businesses at a time when so many rely on the essential services they provide. We are always thrilled when others can benefit from our solution, but never more than when we can support small businesses that play such a critical role in supporting our nation’s health.”

HICX survey reveals reliance on bad supplier data

Nearly nine out of 10 large businesses rely on bad supplier data, putting companies at risk of fraud, according to a new survey from HICX — a cloud-based supplier management platform.

Researchers spoke to American and European businesses at the height of the COVID-19 pandemic, which found that 89% of businesses admitted they relied on “bad data” that led to oversight into their supplier base, according to a press release.

More than 55% of survey takers indicated bad data can greatly amplify risk for companies in times of crisis, including supply chain risk and potential fraud. Nearly half (43%) of respondents said a lack of alignment with the IT department was to blame, while another 82% cited a lack of ownership over the problem as the key challenge, the release said.

“Too few organizations appreciate the costs of supplier data that is incomplete, out of date, and of low quality,” Omera Khan, a professor of supply chain management at the University of London, said in the press release.  If they realized their vulnerabilities in terms of fraud, regulatory compliance, supply chain risk, and degraded purchasing performance, more organizations would invest in better supplier data management, and more appropriate systems.”

Supply chains struggle to produce key PPE

Supply chains are still struggling to meet the demand for certain personal protective equipment (PPE) inventory, according to a Get Us PPE survey reported on by Supply Chain Dive. The August shortage index found that 77% of survey respondents said they have no supply remaining for one or more types of PPE.

The three most requested PPE items in the database for August were N95 respirators, disinfecting wipes and surgical masks. PPE manufacturers acknowledged the ongoing issue of availability and stock, the article said.

Rural parts of the country are hit especially hard with PPE shortages because of geographic location, cost of ordering PPE in small amounts and the inability of smaller organizations to meet minimum order quantity, the article said.

"While large hospital systems are beginning to benefit from a recovering PPE supply chain, smaller, non-hospital facilities are still facing acute PPE shortages," Get Us PPE said in a report accompanying the survey.

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