Brian Mangan Assistant Director
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1 Brian Mangan Assistant Director Areas covered Who we are Challenges in Regional procurement The approaches we use Lessons we ve learned 1
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 Guymer Director Left to Right: Mike Doyle Brian Mangan Alex Deveney To focus on sustainable development A collective NW Procurement voice Provide a co ordinated approach in NW for training, CPD and organisational development To develop procurement in the North West Work towards a standardised method of sharing data and knowledge Forum for sharing best practice 2
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 NHS NWPD Steering Board NWC AHSN CEO Chair 2 DoF per Economy group NHS NWPD Director Lancs & Cumbria Greater Manchester NHS NWPD Management Board NHS NWPD SNr Mgrs Chairs of Economy groups PSD leads Cheshire & Mersey Collective procurement Data & knowledge Professional development 3
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 4
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 Challenges Creating a community & culture of collective working Raising the profile of procurement Improving transparency & coordination Providing robust professional and organisational development Developing supplier relationship management Supporting Trusts to deal with the increased pressure for savings 5
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 Collectivism can be typified as "horizontal collectivism", wherein equality is emphasized and people engage in sharing and cooperation 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 6
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 7
8 Collective 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 8
9 Benefits of networks to partners & suppliers ENGAGEMENT WITH SUPPLIERS AND MEDICAL PROFESSIONALS ENGAGEMENT WITH PROCUREMENT PROFESSIONALS NW SUPPLIERS ALL OTHER AHNS NETWORKS FOR SUPPLIERS, ACADEMIA, MEDCS BRIDGE VISIBILITY OF ACTIVITY IN SUPPLY MARKET GM & NWC AHSN LINK NHS NWPD NETWORKS FOR HoPs, DoFS, NEDS, CLINICIANS BRIDGE VISIBILITY OF ACTIVITY IN PROCUREMENT NHS TRUSTS DEVELOPMENT OF INNOVATION DEVELOPMENT OF STRATEGY Aspiration in 2013 Category reference groups IT Mental Health Theatre consum ables Energy Capital Med Equip t CRG s Provis ions Temp Staffing Orthopaedic Cardiac NHSSC 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. 18 9
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 10
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: The news where you are Wider access to share+save Member discussion forums Dedicated resource to manage Transparency 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 11
12 Professional development Training needs identified and monitored by group of HoPs/Senior Procurement Professionals Professional development Future 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: 360 degree Psychometric Tests Personal Leadership Impact Thinking Differently Engaging Teams Leading Change Multi media Skills Business Skills Connecting with the Patient/client Action Learning Sets Individual Coaching Sessions 12
13 Organisational development NHS Procurement Standards NHS NWPD Towards Excellence in Procurement Accreditation 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 13
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 22/23 rd October EIS logo 2015? 14
15 Fit for purpose The Vision 0.2% 0.3% NWPD have conceived the idea of 1billion turnover CLUSTER as being the optimum level where collaboration can work. This is supported by evidence collated by NWPD from across the region on performance against the NHS Standards of Procurement and annual savings and procurement efficiencies achieved. 0.6% 250m 1bn 0.8% Approx Turnover Trust Cluster High Complexity of product and implementation Lancashire Acute Trusts represent an approximate 1.3 billion turnover. 10bn 90bn Regional National Low The Proposal Phase 1 Phase 2 Phase 3 Lancashire Procurement Cluster Joint Working Shared Contracting Teams Single Department This is big but not too big Optimal span of control Engaged stakeholders Retained ownership by the NHS 15
16 Long term aims Value based procurement in the NHS 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 DH Leading the nation s health and care Value Based Procurement project plan 1. Collect data from each Trust Deadline: 27th February Hold one focus group for each key area primary hip and knee prosthesis, pressure area care and print management. Deadline: 31st March Conduct interviews with key stakeholders including clinicians. Deadline: 30th April Run supplier day Deadline: Early May 2015 The lead academics will start the Data Analysis Phase in May 2015, aiming to complete the write up by early July
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? + 17
18 Questions? 18
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