This is among the highest level of EDI usage in the healthcare supply industry. By conducting business transactions electronically, Allegiance and its suppliers are improving efficiency and accuracy in supplying medical, surgical, and laboratory products in America. For the system to work, Allegiance and its suppliers have enhanced existing computer systems, creating a better flow of communication. According to the Efficient Healthcare Consumer Response Study, EDI is critical to improving the healthcare supply chain. The majority of Allegiance's purchase orders are now placed through EDI, which is about a fourth of the cost of orders handled by phone or fax.
Allegiance is committed to continuous improvement in customer service.
We are now focusing on additional business process innovations to improve the entire purchase order to payment cycle. Wedemyer says EDI has resulted in better fill rates, reduced inventory, improved purchase order to payment processes, and fewer errors made during data entry. Allegiance's suppliers see EDI as an essential way to conduct business. Allegiance has been an outstanding partner in implementing EDI in all intercompany business processes. As a result, our cost structure in manufacturing and administration is much improved.