NHS Supply Chain

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NHS Supply Chain

• Business Plan, Key achievements in first year and
  2008 Workplan
• Roger West, Procurement Director

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Pop quiz on NHSSC
Number of delivery points?
Number of orders in 07?
18k
30m
Service level last wk?
99.2
Lorry miles/wk?
Number of Customers?
230k
400
Number of items NHS-Cat
Number of suppliers?
Number of items in hardcopy catalogue
501k
650
50k
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Agenda

• What we achieved in 2007
• Purpose
• Key themes for 2008
• Organisation structure to deliver the plan
• New products and new capability
• Our value proposition to suppliers

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One year onwhat have we achieved?

• Assimilated colleagues from variety of
  backgrounds
• New organisation structure to enable growth and
  ensure delivery
• Re-branding to NHS Supply Chain
• Launched the 2008 workplan
• Procurement specific
• NHS Cat launched
• New eSourcing tool being implemented
• Capital and maintenance brought into scope
• New contracts launched/piloted
• Bone cement
• Medical Imaging
• Dentistry

7 YOY sales growth
9m Savings delivered to trusts
2 Deflationary catalogues
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Savings
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Testimonial
Finance had only allowed 50K in the Capital
budget for it the fact that you brought the spec
we wanted in for 76K instead of the 95K we were
originally quoted has meant we've got the piece
of kit we need now, rather than settling for
something that wasn't up to the job or having to
wait to ask again next year And in future, if
you ever have one of those days when you feel
that your job is a waste of time - and lets face
it, we all have those - just remember the
difference you've made to us today. This means
our patients can have the scans they need in the
place they need them, our Radiologists and
Sonographers have a decent piece of equipment to
work from, helping them to come to a clear
diagnosis and our clinicians have the benefit of
a result they can have confidence in. You've
made that happen - it wouldn't have happened
without you.
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Our purpose

• Deliver value to the NHS
• Create value in our business
• Fund investments not through taxpayer
• Create a profit (DH agreed and capped!)
• Remove waste and non value add
• Support and facilitate innovation
• Continually improve supply chain efficiency
• Improve supplier value

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Key themes for 2008

• Do new things
• Extract value from legacy PASA contracts
• Work with suppliers to create additional value
• Tighten connections to clinicians through product
  councils and task forces
• Rapid response to government thinking deep
  clean, MRSA, nutrition
• Improve quality and frequency of stakeholder
  engagement
• Become easier to do business with
• Segment customers and make simplify purchasing

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2008 plan

• Scope of the contract
• Turnover about 850m and about 70 compliance
• 196 commodity areas covering about 5.2bn
• Strategy
• Hitherto concentrated on commodities
• Need to blend this with wider health priorities
  HAIC,
• 18 week lead-time, supporting patients in their
  homes
• Look at supply from the customers viewpoint
• Work with suppliers and DoH initiatives on
  innovation

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Organisation Update
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Organisation to support patient pathway
Diagnostics
Patient Care
Intervention
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Diagnostics
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Intervention
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Patient Care
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New opportunities

• We will progress the following in 2008
• Orthopaedics
• Capital .building from Medical Imaging in
  07.Ph2 offer in development
• Maintenance
• Home delivery service .building out from inco
  products
• GP and high street dentistry - tbc
• Pathology
• Home loans Community equipment strategy
• Own label
• Agility of ordering systems
• Flexibility and capacity of delivery channels
  24hr response, small drops
• Cost improvement factory gate, simplify and
  standardise processes
• Customer service catalogues, community portals

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Supplier Value Proposition
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NHS Supply Chain breadth of what we do
Manufacturing
Supply Centre
Distribution Centres
Consolidation
Trusts
NHS Supply Chain
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What I need from you

• Work with us to be your preferred channel into
  NHS
• Help us accelerate innovation
• Work collaboratively to remove waste and
  non-value add
• Support deployment of NHS-Cat and help build its
  value to our customers
• Proactively raise opportunities for delivering
  value
• Engage in the use of Intenda
• Challenge us on what we could be doing better

Join us on our challenging transformation
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Where do you want to be?
2008
2005