Supplier Partnership Workshop. Joanna Timmerman 20 June

Transcription

1 Supplier Partnership Workshop Joanna Timmerman 20 June 2013

2 Supplier Partnership Workshop Initiatives to enhance efficiencies Joanna Timmerman MD Procurement 13 June 2013

3 We are listening and acting on feedback Adding value to suppliers Improving relationships Improving communications World class procurement Strategic sourcing team Libra

4 The time is now Generate solutions and ideas Overcome challenges Share expertise Drive cost out

5 Key Cost Components Cost to acquire Cost to process Purchase costs Raw materials Cash flow payment terms Packaging Warehousing / inventory Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

6 Strategic Sourcing Workshop Jonathan Kaye Head of Strategic Sourcing Supplier Partnership Workshop 13 June 2013

7 Key Cost Components Cost to acquire Cost to process Purchase costs Raw materials Cash flow payment terms Strategic sourcing Packaging Warehousing / inventory Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

8 Procurement Solutions Hayley Lewis Head of Trading - Clinical Keith Hinchcliffe Head of Trading Facilities and Estates Supplier Partnership Workshop 13 June 2013

9 Key Cost Components Cost to acquire Cost to process Purchase costs Raw materials Cash flow payment terms Packaging Warehousing / inventory Procurement solutions Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

10 Procurement Approaches Buy better Improving tender processes to deliver efficiencies, simplification and opportunities for bidders Buy differently Creating opportunities to simplify choice and adoption Buy efficiently Using strategic approaches to remove unwanted costs

11 Procurement Solutions Buy better Buy better Flexible discount structures Creating opportunities to simplify choice and adoption Banded pricing Ease of order, improved packing, manufacturing, offer best value Intelligent e-auction application Commitment, visibility and control of costing's Super tenders Removal of multiple tendering, administration costs, time and marketing

12 Procurement Solutions Buy differently Informed product selection Innovation Rebate management Marketing opportunities Enhanced supplier relationships Enhanced reporting and data Buy differently Greater visibility of products across the NHS, providing choice to the end user Proven process to drive innovation into the NHS with instant information and the opportunity to order on a national basis Removal of back office administration National coverage, e-commerce, dedicated supplier area, Website, Customer reports and much more Partnership approach, regular meetings and updates, working together to deliver value into the NHS Sharing data, supplier portal, developing together

13 Procurement Solutions Buy efficiently Buy efficiently Ease of transition Customer service, one order, one delivery, one invoice remove back office administration Bulk buy Utilising economies of scale to drive efficiency into the supply chain and value into the NHS Enhanced payment terms Improved cash flow DH capital fund Established for large capital expenditure. within the NHS

14 Supply Chain Solutions Workshop Rosemary Wilkins Head of the Supply Chain Department Supplier Partnership Workshop 13 June 2013

15 Key Cost Components Cost to acquire Cost to process Purchase costs Raw materials Packaging Cash flow payment terms Warehousing / inventory Supply chain solutions Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

16 Intelligent Ordering Patterns Applying a greater level of intelligence than standard ordering patterns Agreed with Supplier to allow efficiencies of production / picking / delivery Examples might include Standing orders Committed forecasts Regular bulk purchase arrangements Layer, pallet, trailer, fill Pre-loading totes Developed with suppliers Subject to a commercial evaluation of the opportunity.

17 Customer Partnership Workshop Farah Duff Head of Customer Partnership Solutions Rachel Repper Trading Director - Consumables Supplier Partnership Workshop 13 June 2013

18 Key Cost Components Cost to acquire Cost to process Purchase costs Raw materials Cash flow payment terms Customer partnership Packaging Warehousing / inventory Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

19 Feedback Response Trusts Cost pressure Variation Capacity Looking for efficiencies without impacting patient outcomes NHS Supply Chain Response Local\regional\national offering National Mini Competitions Regional collaborative offering Suppliers Want assurance of sales Reduction in tendering activity Support with marketing Department of Health Looking for examples of : Aggregation Commitment Collaboration Experiences Lack of buy in from suppliers Speed of change Stakeholders differing requirements Different levels of maturity Perception of commitment differs

20 Raising our Game Meeting National Mini Competitions National Framework Agreements 4 years Timetabled yearly mini-competitions. Trusts can choose to take part and align to their annual plan Trusts Suppliers Compliant savings Supporting trust resource challenges Demonstrates collaborative procurement under pinning DoH strategy Can integrate procurement activity around mini competition schedule Consolidating NHS demand saving time and money Customer retention Potential new volume Reduces need to respond to plethora of Procurement activity from trusts, hubs and intermediaries

21 Regional Collaborative Principles Transparency and data management Sharing of prices paid Sharing of volume Sharing of supplier deals Collaboration joined up data analysis Leadership, clinical engagement, reducing variation Clinical forums linked to procurement Standardized range across the region Setting standards to be used nationally Collaboration and use of intermediates Use of national framework for deals Strategic relationship with NHS Supply Chain Collaboration agreement between Trusts Suppliers, innovation and growth Giving suppliers certainty of volume Focus on optimum supply chain to take cost out

22 Overcoming challenges and sharing ideas Split into two groups You have 20 minutes to explore and discuss: challenges and how these might be overcome other suggestions and ideas that will support cost out 1. Document all challenges and ideas on post it notes 2. Document one key challenge and one key idea on the coloured card

23 Summary of the day and next steps

24 Initiatives feedback summary The workshop that generated the most interest is Supply Chain Solutions Your top five initiatives: Inbound logistics Enhanced communications Innovation Intelligent ordering Marketing opportunities

25 Your interest in the initiatives High Moderate Low None Aggregation of demand nationally Aggregation of demand regionally Aggregation of demand locally ** Marketing opportunities Enhanced payment terms Banded pricing Flexible discount structures ** Innovation Bulk buys ** Enhanced communications ** Intelligent ordering ** Inbound logistics Bulk Container Acceptance Direct Inbound Deliveries Packaging Optimisation Packaging Minimisation Pack Quantity Optimisation Euro Pallet Acceptance Pallet Fill Increase Pallet Height Optimisation Trailer Fill Optimisation

26 Your feedback on timescales Aggregation of demand nationally Aggregation of demand regionally Aggregation of demand locally ** Marketing opportunities Enhanced payment terms Banded pricing Flexible discount structures ** Innovation Bulk buys ** Enhanced communications ** Intelligent ordering ** Inbound logistics Bulk Container Acceptance Direct Inbound Deliveries Packaging Optimisation Packaging Minimisation Pack Quantity Optimisation Euro Pallet Acceptance Pallet Fill Increase Pallet Height Optimisation Trailer Fill Optimisation

27 What next

28 Key Cost Components Cost to acquire Cost to process Packaging Purchase costs Raw materials Cash flow payment terms Warehousing / inventory Strategic sourcing Customer partnership Supply chain solutions Procurement solutions Back office costs Sales and marketing Research and development Transportation costs Cost of capital Tendering Tendering Labour

29 Together we will achieve: Customer savings Sustainable markets Efficient procurement and distribution In a mutually sustainable and acceptable way for the three parties