NHS Supply Chain Medical Supplier Board Pre- Read 1

Transcription

1 NHS Supply Chain Medical Supplier Board Pre- Read 1 Medical Supplier Board, December Board Action Update 12 December 2013 This pre-read presents an update on the Actions from the September Medical Markets Supplier Board meeting. Members are asked to read through and note those actions coloured in red which are incomplete. During the December Supplier Board meeting, members will be asked to provide dates by which their designated action will be completed. In the light of the Department of Health review of the Supplier Board Terms of Reference and the publication of the DH Procurement Strategy, some actions have been postponed. These include the Supplier Board metrics review.

2 Supplier Board Actions Log Actions generated from September 2013 meeting Meeting notes reference number ACTION RESPONSIBLE Next steps Further Action Required Target Comple tion Date Completion Date Notes 1 Pre-reads Chair and Secretariat Circulate all pre-reads when available and at least two weeks ahead of the next meeting date. Ongoing Any Qualified Provider (AQP) NHS Supply Chain update NHS Supply Chain update Supplier Board Metrics and Dashboard update All members Secretariat Joanna Timmerman Joanna Timmerman To monitor changes in the market place relating to private companies and other new service providers entering the NHS under the AQP guidelines. Circulate a copy of the new NHS Supply Chain Q&A document when available. This document will introduce NHS Supply Chain and explans how to get the best value from the relationship between NHS Supply Chain and suppliers. Share some detail on the focused category management strategy at the next meeting. Circulate to the metrics SIG a revised metrics dashboard, in the style of the one used by Customer Board to see whether this should be an adopted style for the Supplier Board Report back to the Supplier Board members' experiences and actions December Agenda Item Ongoing tbc 12/12/ /12/20 13 Action rolled over from previous meeting Document awaiting further input from suppliers and Trading /Contracting To be included in NHS Supply Chain update at December meeting Subject to Metrics agreement in revised Terms of Reference.

3 5 NHSBSA update Paul Clarke Include an update on the Options Appraisal for contract renewal for NHS Supply Chain on the December Supplier Board agenda. December Agenda Item 12/12/20 13 To be included in December NHS Supply Chain Update 6 Innovation Special Interest Group Secretariat Invite a representative of the NHS Supply Chain contracting team to the December meeting to demonstrate the approach to encouraging innovative products and practices, which will deliver savings to the NHS. December Agenda Item 13/12/20 13 Postponed to March meeting 6 6 Innovation Special Interest Group Innovation Special Interest Group Joanna Timmerman Joanna Timmerman Contact the Customer Board chair/interim chair to propose the establishment of a cross-functional innovation group. Contact the Customer Board chair/interim chair to share actions on accelerating the adoption of innovation throughout the NHS 30/11/ /11/20 13 Awaiting new Customer Board chair appointment Awaiting new Customer Board chair appointment 6 Innovation Special Interest Group NHS Supply Chain Innovation team Share the cross-referencing of NICE approved products with the NHS Supply Chain catalogue to see how widely innovative products had been adopted through new and existing frameworks. 30/11/20 13 See pre-read note 6 below 7 7 Introduction to BDTA Introduction to BDTA Joanna Timmerman Tony Reed/Joanna Timmerman 8 DH Update Sandra Barrow Circulate details of Safer Sharps events and training programmes that are available through NHS Supply Chain Explore joint learnings and parallels between the NHS Supply Chain model and the dental industry proposals regaring Supply Chain Circulate links to the SME consultation documents and Lord Young report 30/11/ /09/ /09/ /09/2013 See pre-read note 7 below Action Completed

4 NHS Supply Chain Terms and Conditions NHS Supply Chain Terms and Conditions DH Procurement Strategy Mark Hart Mark Hart/Sandra Barrow Joanna Timmerman Circulate the revised structured NHS Supply Chain framework agreement to members following the internal review and comparison with DH Framework agreement format Produce a comparison document showing the key differences between NHS Supply Chain and DH T&Cs. Circulate to members Explore the reintroduction of the presentation of Libra savings figures by Trade Association 03/12/ /12/ /11/20 13 This reporting is not considered reliable. Sales by portfolio avoids duplication. Update on Libra reporting to be included in NHS Suppyl Chain update. 10 DH Procurement Strategy Sandra Barrow Share details with members of how inflation figures had been calculated to support the DH savings targets. 12/12/ DH Procurement Strategy Paul Clarke NHSBSA to establish a cross-functional forum with customer and suppliers around the table to discuss a more focused approach to delivering the DH required savings Ongoing 11 Extended Invitations to board meetings Interim Chair To extend an invitation to the Interim Chair of the Customer Board to attend the September Supplier Board meeting

5 11 Next Meeting Agenda Items Secretariat Obtain pre-reads for all December Board agenda items for circulation two weeks in advance of the Board meeting Extended Invitations to board meetings All Members Secretariat Members are reminded that they may ask to bring additional members of their trade assocation to the meeting following a request and justification to the Interim chair. Ongoing Note 6 Innovation Special Interest Group Share the cross-referencing of NICE approved products with the NHS Supply Chain catalogue to see how widely innovative products had been adopted through new and existing frameworks. The Innovation team has conducted this analysis. There are currently three product ranges available through the NHS Supply Chain catalogue that have NICE technology appraisals. Two further products, introduced through the Innovation scorecard are listed. There will be a separate area on the innovation web pages for products that have been approved by NICE, these will link through to the relevant NICE website pages. This exercise will be rolled out to cover NHS Supply Chain products which are high impact innovations and these will link to the relevant NHS England web pages. Note 7 Introduction to BDTA Circulate details of Safer Sharps events and training programmes that are available through NHS Supply Chain Safer Sharps Sharps directive - As a result of lobbying by various bodies (including the RCN, The Safer Needles Network, UNISON, HSE and NHS Employers), EU Directive 2010/32/EU was adopted in May The aims of the directive are: To achieve the safest possible working environment for healthcare workers To prevent healthcare workers injuries caused by all medical sharps To protect healthcare workers at risk

6 To set up an integrated approach, establishing policies in risk assessment, risk prevention, training, information, awareness raising and monitoring To put in place response and follow up procedures. NHS Supply Chain ran a number of successful regional events throughout 2013 focusing on raising awareness of the EU Directive 2010/32/EU and the support available from NHS Supply Chain to help trusts implement changes to their clinical processes. NHS Supply Chain has a Safer Sharps website: where NHS customers can go to get advice and information on the Safer Sharps directive legislation, evidence of cost sharps injuries and the range of safety products available through NHS Supply Chain: Lists of safety products across: Syringes & Needles, Intravenous Cannulas, Blood Collection and Blood Lancets The website also details other related frameworks that can reduce the risks e.g. Clinical Waste Containers and Scalpels & Blades and gives the contact details wehre trusts can obtain the support of NHS Supply Chain s Clinical Nurse Advisors Additional support includes demonstration days, cost analysis / business case support, Implementation support and commitment discount sign-up. Demonstration Days Over 400 delegates attended the 11 demonstration days, supported by the RCN, HSE & HPA, with typically 30 suppliers exhibiting their safety products each day. Cost Analysis NHS Supply Chain analyses current usage for the trusts and provides templates and support for trusts to write internal business cases. This is supported by continued analysis of spend going forward to track their safer products usage versus their business case. Implementation Support NHS Supply Chain provides impartial advice on product usage and will organise for those suppliers on framework to visit the trust and support any clinical trials. Clinical nurse advisors provide impartial clinical advice when requested NHS Supply Chain will support stock management, consolidate stocks and support stock run down, masking products where requested and appropriate. Commitment discounts & Ongoing support NHS Supply Chain works in partnership with suppliers to ensure trusts are signed up for all appropriate commitment discounts Trend Analysis move towards safer products Overall number of safety products continues to increase. Conventional products includes products where there are no safety alternatives. Overall conversion is still low across the majority of product areas excluding Blood Lancets.

7 Safer Needles Network NHS Supply Chain sends two delegates to the Safer Needles Network meetings. At the June meeting, Barry Walker, Lead Senior Buyer - IV & Medical, gave an update to the network on the safer sharps events. Safer Sharps Communications NHS Supply Chain has supplied data to the HPA and ABHI and is updating the data in order to monitor trends towards safer sharps conversion. Currently there are pockets of conversion but it is still too early to say what the impact of the regulations will be on sales data. Call to Action from suppliers Inform Barry Walker and the Safer Sharps team where suppliers are conducting trials, so we can ensure any support required from NHS Supply Chain is available Ensure the trust provides NHS Supply Chain their demand once they have made the decision so that we can ensure the correct levels of stock For further information contact: Barry Walker Lead Senior Buyer barry.walker@supplychain.nhs.uk

8 NHS Supply Chain Medical Supplier Board Pre-Read 2 NHS Supply Chain Medical Supplier Board NHS Supply Chain Update 12 December 2013 NHS Supply Chain response to Better Procurement, Better Value, Better Care NHS Supply Chain is committed to responding to the savings challenge laid out by the Department of Health. Activity has been focused on identifying the components that will deliver the 150m savings set out in the DH Procurement Review, Better Procurement, Better Value, Better Care Several meetings have taken place with the DH and Cabinet Office during November to present the response and proposals to this challenge. Internal workshops in place to continue the focus. NHS Supply Chain is engaging in partnership with suppliers to explore savings opportunities which are mutually beneficial, whilst delivering savings to the NHS. This activity will be presented in detail by Joanna Timmerman at the December Supplier Board meeting. Members are asked to come to the meeting ready to discuss the views and actions of their membership in response to the DH Procurement strategy and Key Supplier Engagement programme. NHS Supply Chain is embedding three pillars into the business and all our focus will be on delivering against these: 1. Reduce cost 2. Improve service 3. Accelerate savings A clear and consistent external and internal communication programme will run through the programme and the whole programme will be supported by the DHL First Choice Way. NHS Supply Chain will: Increase efficiency and reduce its cost to operate Improve and enhance its service proposition Relentlessly pursue savings for the NHS

9 Navigating the NHS Supply Chain contracting process - Supplier Workshop NHS Supply Chain has run a series of Supplier Workshops, designed to help new and existing suppliers to understand our contracting process. These workshops covered the following topics: Our obligations to Public Contract Regulations Where to find our tenders Common mistakes on tender submissions Our tender process and pipeline Intenda e-procurement system What is the benefit to suppliers? The interactive workshops allow suppliers to: Gain an overview of the Public Contract Regulations and NHS Supply Chain s obligations and restrictions Receive tips and get answers to questions about completing tenders for NHS Supply Chain Be guided through the tender process, given advice on how to prepare a tender and submit a fully completed submission Learn how to navigate our e-procurement system Intenda, which suppliers need to use to submit tenders See visibility of the future procurement pipeline of tenders coming up in the next two years Meet and ask the NHS Supply Chain Contracting team questions and it s free! A few statistics from the workshops so far 156 people attended the first 3 workshops 106 different suppliers have attended so far 8% are currently not trading with NHS Supply Chain 182 people are due to attend the next three events from 120 suppliers 87 people from 69 suppliers have been added to the waiting list Workshops have been supported by members of the NHSBSA Invitations were sent to contacts within all existing supplier organisations. The Supplier Board trade association members also cascaded the invitation to their membership. All workshops were booked up and we have a waiting list for the second phase of workshops to be held in As dedicated supporters of presenting a level playing field for all suppliers, including SMEs, we were delighted by the number of our smaller and medium sized suppliers attended the workshops. 64% were from organisations with fewer than 100 employees.

10 We have been delighted to welcome new suppliers. 8% of delegates were from organisations that currently do not supply the NHS through NHS Supply Chain. This is thanks to the Trade Associations promoting the event to their membership. Some feedback from recent workshops: 93% of suppliers stated this workshop provided them with a better understanding of our tendering process? When asked what suppliers had found most useful, here is what they said: Thoroughness and information on how to find upcoming tenders - A proactive approach I found the meeting of great interest giving suppliers the chance to discuss issues. Look forward to other meetings Gaining a greater understanding of the process and the various NHS Supply Chain teams and how they fit and work together It was a really good day - thank you for engaging with suppliers in this way Why not sign up for future events Due to the success of these workshops and the waiting list for attendees, we are scheduling further events in If your membershhip would like to attend a 2014 contracting workshop, please Helen Davison at Helen.davison@supplychain.nhs.uk For details of future Supplier Events, please visit:

11 NHS Supply Chain New Supplier Portal The new portal for suppliers to NHS Supply Chain offers a secure area for collecting and sharing information that is dedicated to each individual supplier. The system now includes: Key contact information for both suppliers and NHS Supply Chain personnel. Documents relevant to your organisation and general communications with suppliers. See Error! Reference source not found. for details. Facility to create and print delivery labels and ASN (Advanced Shipment Notices) Forecasts provide information to help you in your planning. They are specific to you as a supplier, and show anticipated demand. You can comment on the forecasts, and extract the information they contain into Excel for further manipulation. See Error! Reference source not found. for more information. Details of stock held by trusts (consignment stock) are now available. See Error! Reference source not found.. Live NHS Supply Chain stock holding and availability reports Customer Specific demand reports and demand planning forecasts Electronic Trading data interchange Blue Diamond order amendments Edirect order amendments and delivery confirmation Consolidated invoicing Dedicated support desk Online user guides The New Supplier Portal Since the launch of the New Supplier Portal in 2012 we have been gathering feedback from the supplier base and we are now delighted to announce that we have made several design and functionality improvements. The enhancements to the Supplier Portal include enhanced reporting (including the ability to drop data in to excel) forecasting demand reports real-time stock postitions ASN creation ability to amend both stock and non stock orders contact profiles supplier specific documents global Supply chain documents The new enhancements to the Supplier Portal were launched in Autmun 2013

12 The New Revised Supplier Portal (with enhancements Autmun 2013) Project LIBRA Phase II Customer Procurement Savings Reports Early in Q1 2014, as a result of the project run jointly between NHS Supply Chain and the BSA, our NHS customers will be able to access a new set of savings reports and management tools via the NHS Supply Chain website. Trusts will have improved visibility of reporting of their NHS Supply Chain purchases and associated savings with these reports and can make improved evidence-based trust-wide decisions to ensure best-value purchasing. This will help NHS Supply Chain to demonstrate greater transparency and clarity over spend to our customers. Access to the new reports is through a bespoke portal access which is currently used by 182 Trusts. The initial phase of the project contained reports on Classifications 1 Price Reductions and 7, Price Increases. Phase II now makes the remaining five Classifications available to Trusts in order that they can trace savings made through Capital Leasing and Maintenance, Trust Commitment Discounts and Rebates, Innovation, Indexation and Cost Avoidance. In addition, two management tools have been created; savings projection forecast and savings opportunity It is proposed that an update will be contained in the March Supplier Board agenda. If you have any specific questions or clarifications, please address them to the Secretariat for inclusion in the March board meeting.

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14 NHS Supply Chain Operational Suppliers Requirements (OSR) The Operational Supplier Guide was introduced in mid The guide contains all the relevant information that a supplier needs to facilitate a successful delivery to NHS Supply Chain across all three delivery routes. As we improve out network and make changes to our standard requirements we are able to keep our suppliers informed by amending the supplier guide and adding the latest version of the manual to the NHS Supply Chain Supplier Portal. Within the guide there are separate sections for each supply route, Stock Deliveries to our distribution centres, Blue Diamond and E-direct. Each section advises suppliers on how to make a successful delivery, from the point of receiving the order right through to the delivery point. There s information on how to label goods, how to stack and present goods, how suppliers should schedule deliveries in to our sites and also how to use the Supplier Portal. There are sections that cover finance requirements: how suppliers should send invoices / credit notes, the details these should contain and what media should be used to present NHS Supply Chain with invoices and credits notes. Suppliers that follow the guidelines in our operational supplier guide have the potential to reduce costs. In the guidelines, there is information around the best way to present pallets / parcels which will reduce the risk of damage to goods and removal of costs associated with refusal of deliveries that are not to an acceptable standard in line with Health & Safety issues. The guide is an excellent source of information to our existing suppliers and new suppliers. It provides a short overview of NHS Supply Chain and our network of distribution centres along with all the vital telephone numbers and addresses. It can be used as an induction tool for new suppliers to NHS Supply Chain and removes the requirement for suppliers to have to travel around the country to attend induction meetings. Operational Supplier Guide Amendments Version 1.2 vs. Version 2 The following amendments have been made to the Operational Supplier Guide to bring the guide more in line with the new terms and conditions to be issued at the end of The first change is that the guide has been re-named to strengthen the detail within. The new name for the guide is Operational Suppliers Requirements or OSR. The foreword has been re-written by Legal Director, Mark Dillon. The new foreword provides more detail of about NHS Supply Chain and the relationship with DP-DHL and NHSBSA. The purpose of the guide has also been made much clearer and advised that the guide is intended to assist our suppliers. Stock Deliveries Detail around service level has been removed, and refers suppliers to the new schedule which provides detail around service levels expected from suppliers. Delivery bookings, this section has been amended to be clearer of requirements for booking in deliveries at both NDC and RDC, reference to telephone bookings has been removed and advice provided on how to correctly make an booking in to any RDC or NDC.

15 The requirement for NHS Supply Chain to annotate delivery notes with discrepancies has been removed. This improves the process for reporting discrepancies via the DCD system after delivery and supports signing for deliveries as unchecked More information has been added around substandard deliveries, deliveries that do not meet our required standards. This section also refers to the new schedules for rejection and re-work of loads. Sale or return now points suppliers to the schedule and relevant clauses. A new section has been added to include direct supply- full load containers, giving very concise information for containerised deliveries to NHS Supply Chain. Blue Diamond Detail around service level has been removed, and refers suppliers to the new schedule which provides detail around service levels expected from suppliers. Customer discrepancy detail has been amended to state NHS Supply Chain will advise of customer discrepancies within five days and three days where a delivery discrepancy has been found. The returns section now refers suppliers to the schedule and relevant clauses. Minimum order quantities again updated to advise supplier to refer to the schedule and relevant clauses, also now advises to take up issues around MOQ with the relevant buyer or senior buyer. E-Direct Detail around service level has been removed, and refers suppliers to the new schedule which provides detail around service levels expected from suppliers. Minimum order values quantities again updated to advise supplier to refer to the schedule and relevant clauses. Backhaul Section has been re-named Inbound Logistics and all references to Backhaul have been removed. Amended delays in collection to reflect that delays may result in refused collection Detail around charges, insurance etc. have been removed as these will be covered in inbound logistics SLA s. Supplier Tools The supplier tools section of the manual has been completely amended since version 1.2 there is now a full section on what is available from supplier portal which includes a section on how to successfully ASN a delivery in to the NDC. Adding new lines to a framework & Quality Control Adding new lines to a framework has not been amended, however the section on quality control has been removed, this detail is covered within individual sections and also within the schedule. Finance Reference to payment terms now refers to the framework agreement Invoice queries detail of invoice queries type removed and refers to the schedule and relevant clause.

16 Detail of credit note requirements has been amended slightly removing some ambiguity Returns, once again suppliers are being advised to refer to the schedule and relevant clause. Glossary & appendices have been amended accordingly. A copy of the new Operational Supplier Guide Version 2 is attached Customer Surveys NHSBSA will be presenting the results of their customer research at the December Supplier Board. NHS Supply Chain conducts an Annual Customer Satisfaction Survey and the 2013 survey is currently underway, with results to be collated in January In addition, the NHS Supply Chain customer services department conducts monthly small sample checks to regularly test customer perception of the experience of working with NHS Supply chain. The latest November satisfaction check: Overall customer satisfaction score 7.6 showing an upward trend. Most important to customers: price, value for money, savings opportunities, good service. NHS Supply Chain Customer Board has also conducted customer research on perception of NHS Supply Chain. This research has been conducted through street style surveys held at the Foundation Trust Network Annual Conference and the HFMA Annual Conference as well as incorporating questions into the Annual Customer Satisfaction Survey. 1. Research Objectives What is important to customers on procurement? How well does NHS Supply Chain meet these needs? 2. Response rate achieved at the FTN annual conference A total of 106 responses were received (20% of all delegates), split as follows: Summary of findings from FTN Annual Conference Overall satisfaction: 6.4 Likelihood of recommending NHS Supply Chain to others: 7.0 Overall awareness: 86% Summary points Awareness of NHS Supply Chain among this senior audience is encouraging as is their perception around priority areas like compliance and dependable supply chain. However, there is a need to focus on stronger messaging around the contract savings being delivered to the NHS as well as raising the profile of our work on innovation adoption.

17 If you wish to raise any questions on the above update, please let Louise Hillcoat know in advance of the meeting 12/12/13 and it will be addressed during the NHS Supply Chain update. If you have Any Other Business requests, please let Louise Hillcoat know by Tuesday 10 th December.

18 NHS Supply Chain Medical Supplier Board Pre-Read 3 NHS Supply Chain Medical Supplier Board Metrics & Dashboard Special Interest Group Update 12 December 2013 To support the main purposes of the Medical Supplier Board a number of metrics & a dashboard were developed by a special interest group in early The content was developed to:- a) Reflect the key metrics that were important to the NHS and on which Board had influence b) Reflect the activity, progress and satisfaction of the membership to the Boards objectives In the light of the DH review of the Supplier Board terms of reference and discussions regarding the output Metrics of the Supplier Board, the Special Interest Group has not been convened since the June Supplier Board meeting. OTIF Delivery service levels The differing performance in service levels for each supply route will be brought back into discussion at future Supplier Board meetings. Further insight into how inbound service levels, by supplier, and Trade Association will be possible when NHS Supply chain s Business Intelligence tool has been implemented this is still on-going. SDMA membership had raised the issue of differing performance from NHS Supply Chain s various NDC and RDCs and called for some transparency of service levels by distribution centre. This data is not yet available and will be circulated in due course. SME Participation within NHS Supply Chain NHS Supply Chain remains consistent in its SME participation figure of 27% by sales value across both transacted and non-transacted sales. Summary of data: SME participation in Transacted sales: 27.5% SME participation in Non-Transacted sales: 26.1% Total SME participation in NHS Supply Chain sales: 27.2% The SME analysis spreadsheet has been further cleansed, with the reallocation of the majority of the unknown classification in transacted sales and the correction of some market share data. This is an on-going exercise and our mission is to remove all unknown classifications from supplier listings, the majority of which fall in the direct sales (capital) business area and categories. We will be looking to use the Sid4Gov database to help achieve this.

19 Graphs demonstrating the proportion of Large, Micro, Small and Medium sized suppliers by portfolio Markets such as dressings, pathology and audiology are populated by a higher proportion of SMEs

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21 We have implemented the NHS Supply Chain SME action plan, which is now incorporated as business as usual. The success of the action plan is being tracked by recording the participation of SMEs in the tendering process over the year from implementation of the Action Plan. We have been running a series of Supplier Events aimed at informing the Supplier Base on our contracting process, the public procurement regulations and the on-going improvements in our e- procurement process. All these events have been over-subscribed and feedback has been very positive. SME representation at these events has exceeded 50% and this has included representation from some suppliers who do not yet supply through NHS Supply Chain. We will be analysing the feedback and will share with the Supplier Board. NHS Supply Chain has participated in the DH SME consultation programmes and will continue to support the DH aspirations for increased SME participation by ensuring that all suppliers have equal and fair access to the NHS Supply Chain frameworks.

22 Innovation Year on year scorecard sales showing 35% growth due to increase in trust adoption levels Scorecard submissions show a decline in September, no clear reason for this, except submission levels are not constant No new products have been launched through the scorecard this period. We would expect this to be around 10 per annum but there are 50 undergoing assessment due to the onerous processes imposed on the trading teams in order to remain compliant. The on-going simplification process will address this. Innovation Special Interest group set up to discuss address adoption and diffusion of innovation. First meeting on 11 th Sept had a very positive response. Next meeting (14 th Jan) will be attended by NICE to discuss evidence Interim communication sent out to attendees in October NHS Supply Chain Head of contracting to discuss EU guidelines Eastern AHSN to Represent AHSN s NHS Supply Chain products with NICE guidance in the process of being identified, reciprocal links to be added to websites Subject Key Actions Procurement processes Discussion around the constraints of the procurement processes. Innovation Scorecard Increase awareness of the scorecard both internally and externally Look at the potential for adding an innovation section to the tender process. Investigate dynamic purchasing Consider category management approach to innovation Review new EU regulations Ensure contracting manager at the next meeting Feedback from suppliers Build into NHS Supply Chain innovation strategy Customers The group were surprised that the Customer Board and Supplier Boards are not joined up. Need to understand customer needs more Evidence Need to understand what customers want, demonstrating benefit of joining up with Customer Board. Can we endorse Health Economists? Can we apply an efficiency rating to innovative products? Get innovation on the agenda with the supplier board Approach customers re case studies What is the scope of the group - consider who we can influence Can the DH/NHS England mandate the use of products Understand how NICE can support with this process Invite NHS England to the next meeting

23 Dragons Den Not seen as transparent and the view was that we just need a mechanic to bring innovative products to market. Suppliers would prefer a more consultative approach NHS Supply Chain to consider potential events to include an innovation workshop Innovation - Scorecard Metrics Unique innovations that fall outside of the normal tendering process Innovation scorecard metrics July 2009 Oct 2013 Scorecard total submissions 303 Total successful submissions taken onto contract 28 (9.2% submission to contract rate) Total sales of innovative products 1040k Scorecard Submission Numbers Jul Aug 2013

24 Sales of products adopted through the Innovation Scorecard Year Sales Value No of products adopted k k k Oct YTD 352k 2 Some products were introduced on pilot contracts and have been delisted, codes changed or adopted onto existing/new frameworks A number of submissions were submitted close to a tender renewal date, so suppliers are asked to respond to the appropriate tender Tender procedures designed to enable innovative product submissions Reasons for innovation scorecard low submission/acceptance ratio (%)

25 Successful Scorecard Submissions Examples of trust adoption Product FCC093 Single use Anti-RSI Nail care set FWJ030 Tournistrip Single use Tourniquet EVC 043 Bio-Pax- Home Birth Delivery Pack Benefit innovative anti-shock handles and internal spring reduces repetitive strain injury reduced workplace absence and fewer clinic cancellations. innovative cost effective and single use tourniquet. impact on improving health single use item at reduced cost reduced cross infection risks All in one system containing healthcare consumables and a waste container for home birth Reduces cost, time, storage and waste Allows effective safe handling of clinical waste Example trusts with significant adoption Northern Devon Healthcare NHS trust Notts Community Health Partnership Leeds Teaching Hospitals Morecambe Bay Hospitals Trusts Central and NW London NHS Foundation trust Central Manchester University Hospitals Sheffield Teaching Hospitals Guys and St Thomas NHS Foundation Trust Units sold total 2012/2013 Sales value total 2012/ ,670 5, , ,509

26 September 2013 Supplier Board moodboard new version for comment at Supplier Board meeting Issue NHS Supply Chain Ts and Cs Full understanding of role of NHS SC, transparency of process, route to market, sourcing strategy Develop a set of Metrics and a Dashboard format to be regularly reviewed and updated Develop an SME strategy Generate Awareness/Clarity of wider NHS Landscape Reduce messaging/letters into DH and BSA Deliverable % achieved Revised T&Cs for suppliers to the NHS through NHS Supply Chain Align where commercially appropriate to NHS T&Cs Clear definition of the role of NHS SC to include 3 year strategic overview and clarity of different supply channels Produce Dashboard 60 Strategy fully endorsed/signed off by Supplier Board Support DH initiatives as required e.g. Collaborative 'Call for Evidence' submission Commitment from Supplier Board membership to use Supplier Board as Current Status Previous Status Action/Status Rationale * Ensure engagement across wider association membership * Feed into wider NHS Supply Chain T&Cs development plan * Feed back on amendments to T&Cs * Present to Supplier Board fully detailing NHS Supply Chain role - Customer Value Proposition - Supplier Value Proposition - Supplier Research Response * Positive feedback received from board that transparency is valuable to improve strategic alignment across Suppliers and NHS Supply Chain. * Supplier research action plan as BAU * Metrics endorsed by NPC, produced and presented quarterly * SIG agreed priorities for supplier board focus, agreed by Board Members * Metrics to change focus as part of DH review and to bring in line with DH priorities * SIG formed to consult and support development of NHS Supply Chain research and guide the development of the SME strategy, aligned with DH workstream. * SIG convened to ensure full clarity of research findings. * Action plan incorporated into BAU and endorsed by DH * Supplier Board submitted to the Call for Evidence and DH/NHSBSA consultations. DH feedback still not confirmed * Supporting DH SME workstream Standing Agenda item to agree messaging/items of escalation in NPC

27 Shared best practice in response to medical market changes (eg: Barcoding, Benchmarking, DH Procurement Guidelines) communication channel for all inputs and outputs from their associations both positive and negative Supplier Board membership to use Supplier Board to share best practice and invite shared learning 40 Standing Agenda item to invite best practice sharing in response market change

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29 Website Visitor Numbers Traffic to the Supplier Board area of the website spiked in mid-october. This corresponds to specific supplier communications issued around the changeover to our new supplier portal which appeared to more globally generate interest in all the supplier area web pages. The Supplier electronic newsletter will contain a link button to the Supplier Board pages, which will introduce suppliers to the wealth of information contained on the site. The useful documents clicks have dropped from last month confirming that this peaks when there is a Board meeting and new content is uploaded. The Board Members page was the most popular page and had the best time on site out of all of the pages. This perhaps suggests that the traffic driven to the area by Supplier Portal Communications were keen to see who makes up our supplier board.

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31 NHS Supply Chain Metrics for information only The previous conclusion of SIG was that these metrics, whilst informative, are not a key metric on which, at present, the Supplier Board have any influence. It was suggested that they should be included in the Supplier Board scorecard at the end of the pack. Therefore, the following slides are included as an Inform to the Supplier Board members. Customer Procurement Savings Reports: Results and Web Logins 7 Classifications Price Reductions Transacted Direct Sales Difference of current to price 1 year ago at current volume Capex, Leasing & Maintenance Difference of direct price to actual price paid Trust Commitment Discounts & Rebates Cash value as received NHSSC or Direct Innovation Product Process 2 Management Tools 8 9 Indexation Impact and negation of year on year inflation / indexation Cost Avoidance NHS Supply Chain performance a) Mitigating process changes in the marketplace b) Budget to actual cost c) Opportunity cost avoidance Price increases Transacted Direct Sales Difference of current to price 1 year ago at current volume Savings Projections Savings Opportunities Individual Trusts accessing Customer Savings Reports Report by Calendar Month Total Customer Savings YTD (Jan Oct 2013) 47.4m vs target of 46.4m Portfolio Product Supplier Sept 2013 (NHS Yr 2014) 0.7m* Total Year Target is 54m Total Customer Net Price Increases and Decreases only Jan Oct 2013 ( 0.6m)* Total Customer Net Price Increases and Decreases only Apr

32 * Following receipt of customer direct pricing post transaction, we can ascertain that the data above is further improved by 0.9m and 0.5m respectively for calendar year and NHS year Customer Savings Reports - Measured Savings These graphs illustrate NHS Supply Chain savings figures from the period Jan November Total NHS delivered price reductions and cash releasing savings 0.6m since Jan 2013 NHS year 2014 to date is 0.7m net cash reduction Please note these tables each have a different scale.

33 Customers view the reports at 3 levels: Portfolio Supplier Product Total Customer delivered price reductions and cash releasing savings

34 Tender duration (Inform) Two contracts were awarded during October, and two tenders published Average tender duration for October was 84 days Rolling average tender duration now stands at 80.9 days, which is well within the cabinet office mandate of 120 days

35 Five tenders are currently under evaluation The Cabinet Office mandate for all but the most complex government procurements is working days from publication of OJEU to award decision date. Financials (Inform) Our cash collection and payment performance remain strong as indicated by DSO and DPO. Both DPO and DSO remain well below the MSA targets Days Sales Outstanding is a measure of how quickly customers are paying NHS Supply Chain 40 Days Sales Outstanding 3 Month Rolling Days MSA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MSA

36 Days Purchasing Outstanding is a measure of how quickly NHS Supply Chain pays its suppliers 40 Days Purchases Outstanding 3 Month Rolling Days MSA Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MSA

37 NHS Supply Chain Medical Supplier Board Pre-read 4 Ethical Procurement 12 December 2013 Lead presenter: Stephanie Gibney, Ethical and Sustainability Manager Supported by: Mahmood Bhutta, Mahmood Bhutta Univ. of Oxford, Medical Fair and Ethical Trade Group Registrar ENT Surgery, Royal Berkshire Hospital 1. Introduction Stephanie Gibney will be joined by Mr Mahmood Bhutta (ENT Surgeon, Oxford University Hospital and Founding Member of the BMA s Medical Fair and Ethical Trade Group) to brief the Medical Supplier Board on NHS Supply Chain s Ethical Procurement plans up to 2016 and give some context around why this is important from a customer perspective. 2. Key Activities The recent launch of NHS Supply Chain s Sustainable Development strategy sees a greater focus on Ethics and Responsibility as a key component of activity going forward. Our commitment to Ethical Procurement is a strategic objective and will help define contracting activity over the next few years in a number of areas. NHS Supply Chain wish to use this opportunity to brief industry and our peers and partners on this approach and offer early signposting to future activity. This consolidates the work NHS Supply Chain has done so far on Labour Standards Assurance within the Surgical Instruments and Textiles Framework Agreements. The practical model for Ethical Procurement which NHS Supply Chain piloted on 3 contract areas is the Labour Standards Assurance System (LSAS). The LSAS developed alongside David Wathey at the Department of Health represents a systematic approach to labour standards management with the aim of identifying issues, mitigating risk and driving continuous improvement. For a copy of the LSAS, please contact Supplier Board Secretariat Louise Hillcoat. By adopting labour standards assurance, managing risk becomes a more routine element of contract management. We are currently managing over 70 suppliers through the LSAS. 3. Future Programme Our future plans include embedding Labour Standards Assurance into contract areas where there are predictors or evidence of labour standards abuses or non-compliances. Labour Standards Assurance is becoming part of our proposition to NHS Trusts. Not only is it delivering a culture of change, it is also fostering transparency and increased due diligence;

38 Trusts can purchase from this Framework Agreement with a degree of assurance with regard to how suppliers are managing labour standards in their supply chains. There are also benefits for suppliers in addressing labour standards issues; Industry demonstrates it s responsible and committed to improving labour standards and fostering transparency in how they manage these issues. 4. Benefits to Suppliers and Desired Final Output Mahmood Bhutta will give a customer perspective on why ethical procurement is important. He will give some background to the moves in healthcare towards fair and ethical trade and provide an overview of the work of the BMA s Medical Fair and Ethical Trade Group. In the context of Better Procurement Better Value Better Care mitigating risk is a key component of the NHS Procurement Dashboard. Ethical Procurement and labour assurance although not directly mentioned, would assist managing and mitigating risk and contributing to stability and security of supply. Trusts wanting to progress against the NHS Standards of Procurement (Process 2.5) would also find that the procuring from framework agreements with ethical and sustainable considerations built in, would demonstrate progression against the standards. Monitor is trying to get the NHS Standards of Procurement into annual reports although this is not confirmed as yet.