Routes to Market –Opportunities for Suppliers

Jim MillerStrategic Sourcing Director, National Procurement

Owen Inglis-HumphreyDirector of eProcurement and Systems, National Procurement

Colin SinclairLogistics Director, National Procurement

NHS Strategic Sourcing Jim Miller

Strategic Sourcing Director

NationalProcurement

Health BoardDemand

Market Developments

ServiceImprovements

Strategic Programmes

PharmacyMedical Equipment

Consumables & ServicesNon-Medical

The Opportunity

NationalProcurement

The ProcessStrategic Sourcing Toolkit

Clinical Advisory Panel

Local Implementation

Options, trials, evaluation

Solutions

NationalProcurement

The Landscape

• Category A - “buy once for Scotland”• Category B - “buy once for the sector”• Category C - “local/regional collaboration”

NationalProcurement

Success

• Successful implementation and delivery of a contract depends upon a number of areas including:

– Contracts should be easy to use– They should be fit for purpose– They need to provide obvious value

NationalProcurement

NHS eProcurement

Owen Inglis-HumphreyeProcurement Director

NationalProcurement

Shop window

• Quality Content• Clear and informative• Accurate and timely• Appropriate and usable• It’s your shop window across NHSS

NationalProcurement

The transaction

• Clear and unambiguous• Quick and easy• Based on (Shop Window) content• Automated transfer• It’s our request to you

NationalProcurement

The invoice

• Accurate and timely• Clear and unambiguous• Based on the transaction• Automated transfer• It’s your request to us

NationalProcurement

NHS Logistics

Colin SinclairLogistics Director

NationalProcurement

National Logistics Strategy – Key Elements

• Single NDC for NHS Scotland • High Quality Customer Focused Service• Consistent Service Delivery• Wider Availability of Product from One Central Source• Drive Logistics Savings• Link to National Procurement Strategy

– Strategic Sourcing– eP&S

“An effective, efficient and consistent Logistics service is vital to support front line staff in delivering high quality patient care”.

“An effective, efficient and consistent Logistics service is vital to support front line staff in delivering high quality patient care”.

NationalProcurement

Logistics Infrastructure for NHSScotland

Suppliers800

Major Distributors

(Fewer)

NHSS NDC

NHS DeliveryPoints (600+)

NHSSRequisition

Points (50,000)

Customers150,000

Selected commodities

Commodity Groups - B

Commodity Groups - C

Commodity Groups - A

Efficient IT enabled processes Accountable and measurable Service

Visibility Managed Suppliers Customer driven & defined services

Costs reduced Modern Infrastructure High control of the supply chain

High Reliability Best Practice Service

NationalProcurement

Increasing Supply Chain Performance

Working with NP

Increased order consolidation

Access to more routes to market & increased

sales channel

Enhanced reputation

Reduced costs of tendering, ordering &

invoicing

Reduced supply chain costs through

consolidation & access to network

Less lost sales supported by the NHS

Brand

Provide best in class info about NHS activity

Reduced uncertainty

Cost to Serve Route to MarketConsistent Service

LevelManagement Information

NationalProcurement

Establish Develop Fully ExploitPhase 1 Phase 2 Phase 3

Dressings

MedicalSurgical

Hotel Servicesproducts

Disposablelinen

Cateringfood

Print

CSSD

theatres Urology

Desktopstationery

Pharmacy

0-3 yrs

INCREASING INFLUENCE

3-7 yrs7 yrs +

Bulkpaper

WardProvisions

Continence

Estates

Stomacare

£500 million£5-25 million benefit pa

Homedelivery

£100 million£2-10 million benefit pa

Other publicsector

£115 million£7.5 million

net benefit pa

The Logistics Strategy Will Be Further Developed to Cover a Wider Scope of Commodities and Services to Drive Out Additional Benefits

NationalProcurement

The NHS Scotland Future Logistics Supply Chain Vision Goes Beyond Developing a Modernised Infrastructure.

• NHS Scotland understands that there is a link between Healthcare Policy and the supply chain impact of those policies.

• What items are bought, how they are bought, how and where they are consumed

• Understanding the impact of future trends. Examples:– changing demographics, increased home delivery of patient

care– changing clinical practice – changing infrastructure for healthcare delivery

• How these future changes manifest in terms of physical delivery• How to provide these services efficiently and effectively• Working with suppliers to embrace change and enhance capability

The Logistics strategy is a key component of the wider NP Strategy.The Logistics strategy is a key component of the wider NP Strategy.

NationalProcurement

Question and Answer

Delegate Open Forum