11/03/2015
1
Brian Mangan
Assistant Director
Areas covered
• Who we are
• Challenges in Regional procurement
• The approaches we use
• Lessons we’ve learned
11/03/2015
2
Who we are• Established in Spring 2013
• Small team of just 4.5 WTE
• 1 ex DoF of CMFT
• 2 ex Heads of Procurement
• 1 CIMA qualified data analyst
Mick GuymerDirector
Left to Right:
Mike DoyleBrian ManganAlex Deveney
• To focus on sustainable development
• A collective NW Procurement voice
• Provide a co‐ordinated approach in NW for training , CPD and organisational development
• Work towards a standardised method of sharing data and knowledge
• Forum for sharing best practice
To develop procurement in the
North West
11/03/2015
3
Why we are different?
• Funded by NHS for NHS
• All NW Trusts agreed to share information
• “A” political
• Not a contracting authority
• Hearts and minds approach
• FD level representation
5
Customers and governance
Lancs & Cumbria
Greater Manchester
Cheshire & Mersey
NHS NWPD Steering BoardNWC AHSN CEO Chair
2 DoF per Economy groupNHS NWPD Director
NHS NWPD Management Board
NHS NWPD SNr MgrsChairs of Economy groups
PSD leads
Collective procurement
Data & knowledge
Professional development
11/03/2015
4
Scale of procurement in the NW
Highlights
• 74% response rate
• £2.4bn of non‐pay spend
• £1.1bn of influencable non‐pay spend
• £29m savings achieved by procurement in 2013/14
• £39m 2014/15 savings target for procurement
8
11/03/2015
5
Headcount & department makeup
• 412 total staff in post
• 250 staff in front line procurement roles
• 162 staff in stores, materials management, AP and secretarial
• The largest team consists of 55 and smallest team of 5
• Total departmental budgets range from £172k to £1,489k
• 33% MCIPS qualified
9
• Creating a community & culture of collective working
• Raising the profile of procurement
• Improving transparency & co‐ordination
• Providing robust professional and organisational development
• Developing supplier relationship management
• Supporting Trusts to deal with the increased pressure for savings
Challenges
11/03/2015
6
Creating a community: Local v Regional issues
• Traditional boundaries (Liverpool – Manchester)
• Silo working
• Competitive rivalry
• Multiple Procurement providers
• No co‐ordination of activity
• Absence of channels systems etc
Promoting community and collectivisim
Lancs & Cumbria
Greater Manchester
Cheshire & Mersey
•Attendance at Economy group DoF meetings
•Regional Heads of Procurement meetings
•Joint economy group and AHSN meetings
•Materials Managers Network•NED’s forum•GS1 group
•Benchmarking
In development:•Deputies
•CIP Managers
Collectivism can be typified as "horizontal collectivism", wherein equality is emphasized and people engage in sharing and
cooperation
11/03/2015
7
Heads of procurement meetings
• 2013 first time all NW HoPs met
• Breaks down barriers• Share best practice• Allows opportunities to
work across “traditional boundaries”
• Forum for debate local, regional and national issues
• Ideas for collective contracting
Materials Managers network
• Operationally essential and manage significant stock value
• Collective resource to drive efficiencies in supply chain
• Inventory management key issue for Trusts
• Co‐ordinated feedback on NHS Supply chain issues
• Significant opportunity to share + save
11/03/2015
8
Collective procurement @ operational level
Non Executive Directors forum
• Raises the profile of procurement
• Awareness of current regional and national issues
• Supports DH agenda
• Allows the opportunity for sharing best practice and collaborative working Eg Capital plans
• Next follow up meeting suggested by NEDS to incorporate out turn for 14/15 and plans for May 15/16 in conjunction with HoPs
11/03/2015
9
Benefits of networks to partners & suppliers
NWSUPPLIERS
ALL OTHERAHNS
GM & NWCAHSN
NHSNWPD
NHS TRUSTS
ENGAGEMENT WITH
PROCUREMENT PROFESSIONALS
NETWORKS FOR HoPs, DoFS,
NEDS, CLINICIANS
VISIBILITY OF ACTIVITY
IN PROCUREMENT
DEVELOPMENT OF STRATEGY
LINK BRIDGEBRIDGE
ENGAGEMENT WITH SUPPLIERS AND MEDICAL PROFESSIONALS
NETWORKS FOR SUPPLIERS, ACADEMIA, MEDCS
VISIBILITY OF ACTIVITYIN SUPPLY MARKET
DEVELOPMENT OF INNOVATION
CRG’s
Capital
MedEquip’t Temp
Staffing
Cardiac
NHSSC
Ortho‐paedic
Provis‐ions
Energy
Mental Health
IT
Theatre consumables
18
• Recognised no regional strategies or co‐ordination of category areas
• Intention to create category reference groups
• NHSSC fully established and generating benefits
• NW NJR Orthopaedic pilot –a number of successful outcomes
• Cardiac ‐ small scale wins
• Challenges in other areas….
Aspiration in 2013 – Category reference groups
11/03/2015
10
Benefits of approach
NHS Supply Chain embraced opportunity
• Dedicated programme manager
• Super group for Commitment discounts
• Core list development
• Test area for various contracting initiatives
• CRG manages performance and feedback improvement in savings and service
Other
• Promotes transparency
• Full regional view of contract and market information
• Visibility of pricing
• Clinical awareness of commercials
• Information used by Trusts in local negotiations
Challenges Procurement landscape
• Competition between providers
• Lack of provider willingness to work together & share information
• Trust allegiance to different providers – Membership fees, history, politics
• New entrants to provider market
Information systems
• Multiple platforms ‐ differing formats
• Obtaining information labour intensive
• Workload pressures at Trusts
Other
• Need/desire to align to DH procurement efficiency programme
• Resource in NWPD
11/03/2015
11
Data and knowledge
• NWPD Website established 2013
• Repository for regional documents
• News and training
• Open access to general information
• Restricted share section
• Compliments DH portal
Work in progress:
• Wider access to share+save• Member discussion forums• Dedicated resource to manage
www.nwprocurement.co.uk
“The news where you are”
• All members have signed sharing agreement
• Website – secure section for members to post
• Benefits realised in orthopaedic and cardiac categories
• Developing region wide benchmarking solution with HoPs – integrity and acceptance of data essential
Transparency
11/03/2015
12
Professional development
Training needs identified and monitored by group of
HoPs/Senior Procurement Professionals
Professional developmentFuture leaders programme
• A programme designed to nurture talented leaders in finance, informatics and procurement.
• This scheme is for high fliers who can make an immediate impact on organisational performance and become very senior leaders, possibly at board level.
Talent is not about grade or position in the organisation• Facilitated by top quality leaders and professionals, the programme covers the following types of development:
Leading ChangeMulti‐media SkillsBusiness SkillsConnecting with the Patient/clientAction Learning SetsIndividual Coaching Sessions
360 degree Psychometric TestsPersonal Leadership ImpactThinking DifferentlyEngaging Teams
11/03/2015
13
NHS NWPD Towards Excellence in Procurement Accreditation
NHS Procurement Standards
Organisational development
• This mirrors the well established Finance ‘Towards Excellence’ programme.
• Robust peer to peer review process• 6 trusts have achieved level 1
accreditation• 8 trusts in the pipeline for level 1 review
Pressure for savings…alternative approaches needed!
• Supplier relationship management
• Maximising use of resources – Fit for purpose procurement departments
• Value based procurement
11/03/2015
14
Excellence in supply awards
• Aim to build relationships with suppliers
• Event has taken off• AHSN involved in sponsorship• 2014 move to include award of
accreditation and categories for NW Procurement teams
• Suppliers more engaged –tangible results
• Follow up meetings held and Suppliers invited to present at HoP meetings
• Procurement teams highly supportive
• 2015 event 22/23rd October
EIS logo 2015?
11/03/2015
15
NWPD have conceived the idea of
£1billion turnover CLUSTERas being the optimum level wherecollaboration can work. This issupported by evidence collated byNWPD from across the region onperformance against the NHSStandards of Procurement andannual savings and procurementefficiencies achieved.
Lancashire Acute Trusts represent an approximate £1.3 billion turnover.
Fit for purpose ‐ The Vision0.2%
0.3%0.6%
0.8%
Trust
Regional
National
Complexityof product andimplementation
High
Low
£10bn
£90bn
£1bn
£250m
Approx Turnover
Cluster
LancashireProcurement
Cluster
Joint WorkingShared Contracting
TeamsSingle Department
Phase 1 Phase 2 Phase 3
This is big – but not too big
Optimal span of control
Retained ownership by the NHS
Engaged stakeholders
The Proposal
11/03/2015
16
Long term aims
Value based procurement in the NHS
DH – Leading the nation’s health and care
• Focus on pathway costs and innovation and how this can be reflected in a robust and non challengeable way in procurement exercises E.g. how supplier claims for reduced length of stay – factored in..
• Reviewing procurement decisions
Value Based Procurement project plan
1. Collect data from each Trust Deadline: 27th February 2015
2. Hold one focus group for each key area‐ primary hip and knee prosthesis, pressure area care and print management. Deadline: 31st March 2015
3. Conduct interviews with key stakeholders including clinicians. Deadline: 30th April 2015
4. Run supplier dayDeadline: Early‐May 2015
The lead academics will start the Data Analysis Phase in May 2015, aiming to complete the write
up by early July 2015
11/03/2015
17
Achievements So Far
Established a coaching and mentoring network + robust
and nationally recognised peer review/accreditation process
39 out of 39 Trust signed up and committed to sharing
information
Circa £2.5 million savings identified by NWPD and
delivered by Trusts so far 9:1 ROI on funding
Governance
CEO NWC AHSN and 6 DoFs ‐2 from each of C&M, GM and
L&C
+
What have we learned?
11/03/2015
18
Questions?
Top Related