STRATEGIC SOURCING. Supplier Board Update 20 June

Transcription

1 STRATEGIC SOURCING Supplier Board Update 20 June 2013

2 Agenda Agenda Mission Statement Team Structure Principle Activities Key Milestones (Nov 2012 May 2013) Current Activity Status Contact Details

3 Our Principle Activities Reducing Vehicles Reducing Handling Reducing Materials Reducing Freight Trailer Fill Increase Euro Pallet Acceptance Packaging Minimisation Direct Inbound Deliveries Pallet Height Optimisation Pack Quantity Optimisation Packaging Optimisation Bulk Container Acceptance Pallet Fill Increase

4 Our Initiatives: Reducing Vehicles Optimising deliveries through more efficient ordering and trailer fill, saving on transportation costs and CO² impact on the environment. Trailer Fill Increase Identify optimal ordering quantities to ensure maximum use of inbound trailer deliveries Pallet Height Optimisation Identification of the optimal height for a pallet build Pallet Fill Increase Using optimal ordering quantities will remove product layer separation

5 Our Initiatives: Reducing Handling Review the handling of products at suppliers DCs and NHS SC DCs to identify more efficient handling to deliver mutual savings. Euro Pallet Acceptance NHS SC will consider Euro pallets in place of UK pallets if the Supplier is incurring costs through double handling Pack Quantity Optimisation Reviewing the Unit of Issue quantity and/or the Unit of Purchase quantity could increase the quantity of product on a pallet and therefore reduce transport costs

6 Our Initiatives: Reducing Materials Thinking innovatively to reduce packaging materials whilst retaining customer expectations for products not being damaged in transit Packaging Minimisation Elimination of packaging or reducing packaging size and specification to deliver material and transport savings Packaging Optimisation Changing the orientation of the primary, secondary and tertiary packaging to optimise the pallet load, reducing transport costs

7 Our Initiatives: Reducing Freight NHS SC can leverage the benefits of being part of DHL to ensure that the logistics arrangements represents best value with the most efficient solution Direct Inbound Deliveries Reduce supply chain costs from outside the EU by using NHS SC for: Free on Board (FOB) Delivered Duty Paid (DDP) Bulk Containers Loose loaded in 20ft or 40ft ISO containers for de-stuffing by NHS SC at the RDCs

8 Key Milestones (Nov 2012 May 2013) NHS SC Exec sign-off (November 12) Strategic programme and 4 year financial plan Team recruitment finalised (February 13) Supply Chain Re-engineering Manager Programme Manager Packaging Executive Risk and Compliance (February 13) SOP s amended/generated for new activity Tender documentation redrafted to accommodate new activities with OJEU regulations Programme Governance (March 13) PRB process for all activity Steering group to review all new strategies Monthly Operational reviews

9 Key Milestones (continued) Pipeline of initiatives developed (March 13) Programme Management Initiated (March 13) 2020 Strategy: Alignment with procurement excellence workstream (April 13) Web site messaging updated (May 13) Launch press release issued (June 13) Supplier Cost Reduction Workshop scheduled (13 June)

10 Current Activity Status Direct Inbound Deliveries Live: 3 initiatives Planned: 3 initiatives Euro Pallet Acceptance Live: 1 initiative Planned: 2 initiatives Pallet Height Optimisation Live: 2 initiatives Trailer Fill Live: 1 initiative Planned: 9 initiatives Pipeline: 9 initiatives Packaging Optimisation Live: 2 initiatives Planned: 29 initiatives Pipeline: 12 initiatives

11 Visit us Online /strategicsourcing