AHSPO 2009 Supplier Briefing
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1 AHSPO 2009 Supplier Briefing Nigel Allsop, Manager Strategic Procurement, Health Purchasing Victoria 22 nd October 2009
2 Session Structure Summary of AHSPO 2008 HPV Developments over 2008/9 HPV Strategic Directions Engagement Session
3 Outcomes from AHSPO 2008
4 Outcomes from AHSPO 2008 Communication too much choice on contracts Security Sales reps walking into H/Services and not signing in Backorders Getting to a point of concern too many Delivery not getting the right product at the right time!!!
5 Outcomes from AHSPO 2008 Contracts & Pricing HPV contract pricing should remain fixed Driving Costs Down Elimination of duplication a total cost perspective Education we need to see the waste Distribution opportunity for improvement
6 HPV Activities
7
8 HPV Vision We will be a health procurement leader, acknowledged for innovation, ethical procurement practices and transformation of the health supply chain.
9 Strategic Directions 1. Tender Strategy & Contract Management Deliverable: A robust and transparent program capable of delivering the agreed savings. 2. Optimising Relationships Deliverable: Engage with metropolitan and regional health services to deliver agreed outcomes at agency level 3. Supply Chain Reform Deliverable: A Victorian agenda for supply chain reform in the public health sector
10 Tenders and Contracts
11 Strategic Actions 1. Tender Strategy and Contract Management Determine and deliver collective tender program including consideration of most appropriate delivery arrangement Improve contract management approach and outcomes Improve Health Services compliance with HPV contracts
12 Activity Areas Opportunity Appraisal Business Needs & consumption analysis Market Analysis Tender Development Sourcing & Contracting Execution Contract Management Performance Management Detailed Spend Analysis Actual confirmation of spend analysis Opportunity Prioritisation Gather usage data Target pricing Performance feedback Customer Engagement Improved identification of Industry Structure Customer Engagement Performance feedback Redefine weighting system New SCM Questions Customer Differentiation strategy Customer Engagement Align contracts with RFT capabilities Contract readiness reviews Customer Engagement Implement SLA s Improvement in contract terms Manage Performance & Relationship Customer Engagement DIFOTQ / KPI monitoring SCM audits Supplier awards Penalties for non compliance Supplier Performance reviews Lessons learned Customer Engagement
13 Relationship Development
14 Strategic Actions 2. Optimising Relationships Continue to strengthen our relationship with health services using a customised and targeted approach Continue to invest in and build our relationship with government Develop and implement a strategic approach to our supplier relationships Identify other key stakeholders and build the required relationship
15 Relationship Development Department of Health CEO Forums CFO Forums Metro and Regional Forums ERG s and PRG s Presentations to Industry Forums Factual Financial Impacts Supplier forums Under Review
16 Supply Chain Development
17 Strategic Actions 3. Supply Chain Development Drive common catalogue/npc Support and promote supply improvement across the public hospital sector Increase awareness of SC visibility requirements
18 Outcomes from AHSPO 2008 Backorders Getting to a point of concern too many Delivery not getting the right product at the right time!!! Driving Costs Down Elimination of duplication a total cost perspective Education we need to see the waste Distribution opportunity for improvement
19 What do we want? (What can we influence) Standard item description / Data Mgt - NPC Visibility of the SC inefficiency Lean / VSM SC Measurement DIFOT-Q
20 Pharmacy Tender Submission Using the NPC Data Template October 09
21 Upcoming Tenders Tender 1 Hypodermic Needles, Syringes & Oral Dispensers Anticipated Tender Process Start Date Nov 09 2 Handwashes Nov 09 3 Operating Room Consumables, Wound Drainage Dec 09 4 Orthopaedic Prostheses Nov 09 5 Domestic Paper Products Apr 10 6 Respiratory Products Jun 10 7 Wound Care Products Jun 10 8 Enteral Feeds Jun 10 9 Operating Room Consumables Aug Continence Management Products Aug Monitoring Products Oct Surgical Instruments Laparoscopic Oct 10
22 Supplier Briefing SC Awareness 81 Representatives, 48 companies All wanted to win a HPV contract How many had visibility of their supply chain?
23 Cust. Service Documentation 1.$ 2.Qty 3.Desc. 4.Del. Loc. 5.D/Entry error 6.Different pt no. 7.Different Desc. 8.Lost orders 9.L/T Packing 1. Wrong Consolidation 2. Wrong paperwork 3. Damage stock 4. L/T Shipping 1. Damage stock 2. Paperwork lost 3. L/T 1. Paperwork incorrect 2. Paperwork lost W/house 1.Qty 2.Desc. / Pt No. 3.Fill rate 4.Location 5.Item No. 6.Supplier pt no. 7.Different desc. 8.Pick wrong qty 9.Pick wrong item 10.Damage stock 11. L/T DIFOTQ the perfect order If you measure it, you see it, then manage it. Quality 1. Over shipment 2. Wrong product 3. Damaged
24 Summary HPV activities Strategic focus Supply Chain Data management Visibility Q - Where are your capabilities in this development of the Health supply chain?
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