Transcript
Hello everyone and welcome to today’s webinar, “Streamlining Supplier Onboarding, A Case Study with American Senior Communities”. Today we’re pleased to be joined by Carolyn Goodman of American Senior Communities. My name is Mark Brousseau. I’m pleased to be your moderator for today’s webinar. Today’s webinar is sponsored by VendorInfo.
You finance and administration functions are as time-consuming, labor-intensive, and burdensome as onboarding suppliers and managing changes to vendor details. But that’s not a problem anymore for American Senior Communities. A few years ago, they automated their supplier onboarding process with a self-service portal from Vendor Info. Today’s webinar, well, Carolyn Goodman’s gonna tell us about how it is they went about doing all of that.
Hey Carolyn, thanks so much for joining us today.
Thank you for having me, Mark.
So tell us a little bit about American Senior Communities.
Sure. We are the largest nursing home management company in the state of Indiana. We have approximately 115 locations that are skilled nursing facilities, assisted living facilities, and we also have hospice care and home health locations.
And tell us about your role at American Senior Communities.
I’m the accounts payable manager. I have been in that role since 2019. I have a fairly small staff for the number of homes that we have. There’s me and four other AP specialists. I do have a senior director who watches over all of us and we’ve all been together almost 20 years.
Oh my gosh. That’s a team. It is. It really is.
So how many suppliers does American Senior Communities have and how many do you onboard in a typical year?
Right now, for 2023, and we do different types of onboarding because we have our suppliers that we do products and services with, but we also have resident refunds that we pay for a lot of our patients out in the facilities. So altogether last year we had about 2,700 new onboardings that went through VendorInfo for vendor setup.
What types of, what are some of the unique challenges that you have in AP in general for put aside supplier onboarding for just a moment, but what’s unique about the way AP Departments function in your industry versus maybe some of the others that attendees on the line might be more familiar with?
Yeah, so for us being in the medical area, we have very certain, uh, special things that we have to make sure that our vendors are, as we call it, the no-no list. They can’t, um, yeah, uh, the Medicare, Medicaid, um, exception list, they can’t, um, if they’re on that list, we can’t do business with them because we use Medicare, Medicaid money to pay for our products and services. So we have to do a lot of extra checks and balances to make sure our vendors are vetted correctly and that they are able to provide us services.
Alright, so that sounds like a big burden on a small staff. Talk to me about the challenges that you all were having with supplier onboarding before you automated the process. What did it look like before VendorInfo?
It was all completely manual. Um, all paper, we had a 13-page new vendor packet. Each of our facilities, when they would go to do business with a new vendor, they would email that packet to the new vendor. Then that vendor would have to handwrite, fill out all of those papers, send them back to the facility. That facility would then email us that packet of information. We would then have to do all of the verifications manually. We would have to log into the IRS website to verify their tax ID number. Then we would have to go to the OIG site, the SAM site, all of those verifications to check that they were okay to do business with. All of those were done manually. Then we would have to manually go into our ERP and actually key all the information in to set that vendor up. So it was very time-consuming. It would depend on how fast the vendor would return the packet and then also how timely the facility would get the packet to us. So it could take weeks to onboard a new vendor sometimes.
Oh my gosh. And in your industry, there are cases where you need to get those suppliers onboarded quickly, no?
Correct. Yes. There, there’s, you know, could be an emergency, a resident needs something right away. Um, and that’s where we had had a problem where our facilities would go do business with a vendor before that vendor was properly vetted.
Uh oh. So, yeah, so that was had been becoming a problem, especially for our compliance department.
So tell me what suppliers thought about that process. If I wanted to do business with you and you sent me this 13-page document to complete by hand, I’m not sure how excited I would be, Carolyn.
Exactly. Um, you know, I’m sure they weren’t happy about it, but, you know, to get paid for a service they provided they would, you know, complete it. Um, very seldom did we ever have a problem where a vendor would refuse to complete the packet, but there were always a few here and there that they didn’t want to give their personal information for it to be emailed. They didn’t want it to be going back and forth like that.
How were you able to track where things stood in the process in this type of environment? Or were you?
It was difficult. Um, we had an email box that me and my staff, any of us could go into and monitor and we would just put notes out there on an email that, you know, this one was being sent to purchasing for approval or this one we were waiting to verify further information or maybe this one, the tax ID number didn’t match. So everything just kind of set in that email box and as we were able to get all the information and get them vetted, then we would, uh, move them to a closed folder and get everything set up in the system.
So if you went into the mailbox and you saw something, was there that was something was still needed for it, was there a tipping point? Was there an event where somebody or a team of people said, we’ve gotta do something about this?
There was, um, there wasn’t a specific incident with a vendor or anything like that. It was just with the way business is done today. It just was not a good process. And our compliance department had come to our senior director and had said, you know, we need to get a better grip on this. We need, you know, there are certain documents that we need these vendors to see for us, like our code of conduct and our vendor acknowledgement form. We need the vendors to that. We know that they received it and that they’ve read it and we need a way to track that for compliance.
And with the vendor paper vendor packet, that wasn’t happening, um, our vendor acknowledgement was supplied to them, but the code of conduct wasn’t. And then there was also where we have to send that out at least once a year to all of our vendors and it was just a very time-consuming process that we needed, uh, to overhaul and get fixed.
Oh, I could imagine, I mean, we’re talking about tens of thousands of pages every year of handwritten materials going back and forth between you and your suppliers. Not to mention all the change, uh, the, the requests of, of, of details. That’s, that’s a lot of manual processes. Alright. So what was your criteria when you started looking for an automated solution? What were you looking for in a solution?
Well, the main thing we were looking for was, since we do have a couple of niche things, we needed something that was going to be able to be customized to our situation. So we definitely needed, um, you know, a system that was going to do everything for us that we were doing manually. So something to where, you know, we could put that information in and it would do all of those verifications for us. It would check for the OIG, the Sam, the tax ID number. Um, and honestly one thing we had never really thought of was ACH verification. We, um, part of our paper packet was they would complete an ACH, um, enrollment form and we would just key it in and never really thought about, we need to be verifying that information too. So we were looking for a solution that would be able to verify ACH information. Um, and then we were also looking for a, a partner in this that was going to understand our needs and be able to work with us to customize the product.
Alright. So how’d you find VendorInfo and what was it about their solution that appealed to you?
Well, we had gone to the IOFM conference one year in Orlando and had met a couple of different vendors down there that were offering vendor solutions. And we had met with two of them. And the one solution was more than me. We needed it, it had all kinds of bells and whistles that also had the price tag to go with it. So in talking with VendorInfo, they were just right off the bat, it was so helpful because we told them what we wanted and what we wanted it to look like and filled out like a little three-page questionnaire. And when we met with them again in a couple of days, they basically had our portal built and done it. It was amazing that they understood what we, exactly what we needed and what we wanted it to look like. So we were sold on Vendor Info from that point because their customer service is second to none. I, and, and I’m not just saying that we are so happy with their service, you send them an email and if you wait more than 20 minutes for a response, that’s, that’s a long time because they get back to us immediately and whatever we need is taken care of and fixed within that day or the next.
Um, so it’s been fantastic for us as far as working with them and having them as a partner.
Well, that sounds very impressive. Talk to me about the business case for VendorInfo, you decided that the technology was the right fit. How did you go about building that business case to convince senior management that it would deliver the time to value that you needed?
Oh, so we were able to show them the amount of time that the current process was taking and how the people out in the field were having, you know, to take time out of their day to do all this as well. So we wanted to show senior leadership that this is gonna free up time for not only us here, um, at the home office, but for the folks out in the field to give them more time to be able to serve our residents. They wouldn’t be doing paperwork. So, um, saving the folks out in the field time is a, you know, very important to us. So that was a huge selling point. And then as far as compliance, they were ecstatic that we could now have this system to where they could put the code of conduct and the vendor acknowledgment out there. And the vendor who’s completing the onboarding has to actually read the documents and click a button that says they acknowledge they have read these terms. So, and, and we have a record of all of that. Um, so that, you know, senior leadership and compliance were very happy with the process.
Carolyn, I reckon compliance was also excited about having standardization. I mean, when we’re talking about emailing 13-page documents back and forth, that’s, that’s really hard to control and there’s no tracking on who did what. So I imagine there were some things built into the VendorInfo solution that Compliance was really excited about from a tracking standpoint, no?
Absolutely. Um, it, and it has been great for us because with doing it the old way, you know, things could get misplaced. Mm-Hmm. Um, or you would have a facility say, well, I sent you that. Well, we never received it. That does not happen now. Um, it is great because everything shows every time somebody touches it or somebody, you know, makes a change or when something’s submitted, there is a date and a time. Um, if they say, well I sent it, well we didn’t receive it, so show me where you sent it because it would be here. And if the vendor completes the onboarding and they go back to the facility and they’re like, well, I did it, we can go and see, well, I see we sent you the onboarding, but nothing’s been submitted. So the compliance department is very happy with being able to provide all this tracking and, and know exactly where everything is in the process and there shouldn’t be anything falling through the cracks now.
Carolyn, was there any consideration given how easy the platform would be for your suppliers?
Yes, um, because that was a huge concern because we didn’t wanna make it difficult for them because if it is, they’re not gonna do it. Mm-hmm. So, um, the, the way we did our solution is there, there is a vendor information form. So the vendor only has to go to one form and fill out any of the highlighted areas that are in red. It’s very self-explanatory for them. And it’s just one page. They don’t have to click between pages or, or click around at all. They just go to one page and fill out all of their information. And we have had no complaints from vendors at all. Um, it, it has been very successful for us and the folks out in our facilities.
That just sounds a whole lot more appealing than getting a 13-page document dumped in your email box. I mean, I could totally see. So, so describe for me how the onboarding process works today.
Okay, yes. So our, our facilities, they are still involved, but the only thing they are doing is since they have the contact with the vendor, they need to send the onboarding link. So all they need from the vendor is their email address, their company name, a phone number, and a contact name. And if they’re doing business with a vendor, they should have all that with no issue. They simply log into Vendor Info and they go to send onboarding requests. We already have templates set up for all of our different nursing facilities. They just select which one they are, everything’s there. They fill in an email address, name, and phone number and click submit and it’s gone. And that is all they have to do.
That onboarding link is emailed to the vendor and then it’s their responsibility to complete the vendor information form. Once they do that and they click submit, it comes straight to us. So, uh, we have a purchasing department that it does go to them first for their review. If they approve this vendor, it then comes to my team and then that’s where we do the double checking of the verifications. ‘Cause when we go into the portal, the IRS verification and all of the same OIGs, it’s already done. All we have to do is click on it to verify it that, you know, if you see a green check mark, you’re golden. We, we love green check marks.
Also with the same, it verifies the ACH information, it verifies the routing number and the checking number are valid and it will also verify that the name matches that account. So that’s great for us. We have been very fortunate. We haven’t had any type of issues with ACH fraud or anything, knock on wood. So, um, but we love having that aspect of it. Yeah. So, and after we verify everything’s correct, we simply click approve and then that goes to a file that gets imported into our ERP that night. And all of our vendors just are automatically set up in our system the next day.
What ERP do you use Carolyn?
We use Great Plains.
Okay. And then what happens if somebody has a change to their bank, to their supplier details, maybe their bank information or something else? What, how does that work in the system?
Absolutely. We have, it’s um, one of the templates that is set up, it’s called a Profile change. The only thing they can change is their address or their ACH information. ‘Cause we don’t want them to be able to change a name or a tax ID number because that would make them a new vendor that would need to go through the process of being vetted again. So again, the facility would simply go in and put in their email address and name click profile change and hit send that gets emailed directly to the vendor. They’ll log in, click the profile change form, fill out whatever information needs to be changed, click submit. That comes directly to my team where we go into our ERP, find their existing vendor number, enter that into VendorInfo, click approve and it comes through that night and updates GPS overnight. So the changes in the system the next day.
Alright. So is this process as easy as you make it sound?
Make it’s, it really is. Um, I know it sounds too easy, but it really has been that easy. Um, really just cannot say enough about it. It has changed the way we work here at ASC because it has saved so much time. Um, couldn’t be happier.
So you told us at the beginning of the webinar that it used to take weeks to get a supplier onboarded. About how long does it take now?
Well that does depend on the vendor and how quickly they complete their vendor information form. Of course. But if, yeah. So, um, if in a perfect scenario the facility sends the request, the vendor completes it that same day, we would get it that same day. If our purchasing department approves it that day, that vendor could be set up the next day. So it literally could go to a one-day turnaround if everybody does completes everything in one day.
And let’s face it, that was virtually impossible in your old manual environment.
Absolutely. Could not happen.
Alright. So talk to me about the burden that’s been lifted off your staff. You said you had a lean staff, I imagine, you know, with, with, they’re not keying as much. They’re not shuffling as many papers and emails. I mean this has gotta be great for them.
Um, it has been great for our team. I have one of my, um, AP specialists that she is the vendor info guru. She handles everything. Um, and it used to be, um, an all-day event to get through all the emails and the papers and everything to manually get everything set up. And now she can literally go in in the afternoon and view everything and click approve and be done with maybe an on a busy day, an hour a day if that. ‘Cause everything’s already there and done. And instead of taking a full day to complete a process, it now takes less than an hour.
And this lets her focus on more important things, I assume.
Yes.
What does senior management think of this process?
They, they’re very happy with it. They see that, you know, the vendor turnaround is faster. Um, and they don’t hear any complaints. So when they don’t hear any complaints, they’re happy.
Alright. So the question I’m sure is on the minds of many of our attendees, do suppliers think about all this?
We have not had any negative feedback at all. Um, the only thing that for us, and it was, it was a process for us. We are, um, making it mandatory that they sign up for ACH. Um, that is the only pushback we’ve gotten from a couple of vendors. Some of them, um, we do deal with, um, entertainers out in our facilities and some of them are, um, a little older, not as tech savvy. So we do offer the option that the folks out in the facilities can, you know, complete this information for the vendor if need be if they’re not able to do it themselves. But, um, we really haven’t gotten any negative feedback at all.
That is tremendous. So what about those compliance and risk issues? Clearly your compliance team was anxious about things. Yes. How has Vendor Info helped you mitigate that risk?
Well, just them being able to, you know, um, have the vendor have to acknowledge that code of conduct and that vendor acknowledgment form has saved the compliance department from having to mail out thousands upon thousands of letters every year to these vendors because now they’re getting it by, you know, acknowledging it in VendorInfo.
Um, there’s also, you know, there’s no more sending information back and forth through just standard email. So it’s much more protected. The Vendor Info portal is secure. So, um, we tell our vendors that, you know, you can feel safe putting your tax ID number and your personal information in there ’cause it is a secure website. Um, and then just, um, again, the ACH verification so you know, you are paying the right person that they didn’t just put a random account number in there to, you know, be able to change it to their account number or, you know, trying to do any kind of fraud that way.
Absolutely. So what are your biggest lessons learned from this automation project?
Well, on my notes here, I’ve actually written automation is great. Oh, that’s reassuring. Yes. I mean, um, we’ve been automating our whole department since 2020. Um, and it has just been life-changing in this department. Um, just from our invoice processing to the vendors. It is, it’s just great.
The staff must love it.
Absolutely.
Alright, so not everyone in the audience is probably as far along in their automation journey as you. What advice would you give them as they start automating their supplier onboarding or, or look possibly at a solution to refresh what it is they’re using to onboard suppliers?
Sure. Um, first thing, they have to, don’t be afraid of change. ‘Cause it is a change. Um, don’t look at it as well, we’ve always done it this way. Um, because that, even though it might be working, automation is gonna make it so much better. Um, you wanna make sure you know what you want out of the solution, what do you want it to do for you and your business. And then you also want to find a partner in this that’s gonna be able to understand your business dynamic. Someone who’s gonna be able to customize the solution to your needs. And, you know, just be, be informed and, you know, know what you want.
Alright, well we’re pleased to also be joined today by Phil Binkow, the CEO of Vendor Info. Phil, you, you’ve heard Carolyn tell her story. Connect the dots for us. What are the things that our attendees should take away from Carolyn’s journey that they can apply to their own supplier onboarding automation initiatives?
Sure. Thanks, Mark. And, Carolyn, thank you so very much. The purpose of Vendor Info is really to put everything about your vendor information right at your fingertips. Make it easier to collect the data, to verify all the key data fields that are important to you, whether it’s TINs or banking information or specialized sanctions lists, or any other list for that matter. To streamline the whole review and approval and to eliminate the manual steps and to eliminate chasing data from the vendors and really to, um, through the process to improve controls and trackability and security and visibility.
That brings us to the Q and A portion of this webinar. If you haven’t already submitted your question for Carolyn, or if you’ve thought of another question for Carolyn, go ahead. Use the chat tool on your screen to submit your question to me now. We’ll answer as many questions as time allows. Carolyn, one of our attendees is wondering about how difficult it was to implement VendorInfo into your AP environment. Did it require much IT resource? They’re wondering.
No, not really. Um, we have a fantastic IT department and from my understanding, um, it was very seamless. Vendor Info’s IT guy was able to work with our IT guy and it was fairly painless from, from everything I was, um, privy to. ‘Cause it was a seamless process. ‘Cause our IT was able to set everything up by a template that was provided by Vendor Info and all the testing was spot on when we did it. And there, there’s been no problems at all getting the information into our, our ERP.
Carolyn, Jeff wants to know. So is it really that easy?
It really is. I, I promise you it has been so easy. Um, we, well me, I will say me spent more time tweaking the portal trying to make it absolutely perfect of the way I wanted it. I spent way too much time doing that. We probably could have gone live a month or so before had I stopped trying to tweak everything. So, um, ’cause they had it, they had it exactly the way we wanted it. But then there I would think of something, but no, I mean, it really is, it is that easy.
Phil Star is wondering whether your bank account verification solution works for foreign bank accounts as well as domestic?
Uh, yes, it certainly does.
So Carolyn, what would be the biggest piece of advice you’d leave our attendees with as they consider automating their supplier onboarding process?
Do it. It, it’s so, it’s so worth it. Um, it will change the way your department runs. It will save you time. It’ll give you a sense of security knowing that your vendors are being vetted correctly and that you have all the information you need. Um, I don’t have any apprehension, apprehension, it. It’s, it’s definitely something that everybody should use and do.
Phil, same question to you. What advice would you give to folks who might be considering automating their supplier onboarding process?
Sure. Uh, you know, give us a call and, you know, let us understand your current situation and the circumstances. And, you know, we can put together a, you know, a, a document that, you know, helps you understand what certainly point out any, any kind of improvements that could be made, any streamlining that you could realize, uh, any, uh, certainly any security, uh, security, uh, improvements and enhancements that, uh, you could realize from the system.
And that will conclude today’s webinar. Carolyn, Phil, thanks so much for an excellent presentation and for sharing your insights with us today. And thank all of you for taking time out of your busy days to join us. On behalf of VendorInfo, this is Mark Brousseau. Thanks so much for joining us. Hope to speak with you all again soon.