Simon Brewin

1
Overview of the National Supply Chain Reform Task
Force

• Simon Brewin

2
Todays Presentation

• National supply chain reform task force
• Whats driving e-commerce reform
• Why we need a national approach
• Task Form Work Groups
• Status of supply chain reform initiatives
• Summary

3
National Supply Chain Reform Task Force

• Health Online (NHIMAC) identified five key health
  information projects that depend on collaborative
  activity on a national basis.
• Introducing e-commerce in hospital supply chains
  was identified as a key project.
• NHIMAC established the National Supply Chain
  Reform Task Force in July 2000 to support joint
  planning by governments, hospitals, purchasing
  agencies and product suppliers.

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About The Task Force

• Vision
• Improved Patient Care in a changing Health
  Environment
• Mission
• World-class efficient and effective end-to-end
  supply chain

5
About the Task Force

• Objectives
• Identify key areas for joint work between health
  supply chain members
• Develop activities to help members of the supply
  chain to redesign business processes
• Develop activities to help members of the supply
  chain to adopt new technologies in a consistent
  fashion
• Provide forums for stakeholders across health to
  continue to collaborate and share information on
  supply chain developments

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What is Drivinge-Commerce Reform?

• Opportunities to reduce costs and improve the
  quality and reliability of supply chains.
• The importance of positioning Australian hospital
  purchasers and their suppliers to respond to
  global e-commerce trends for hospital purchasing.

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Why Do We Need aNational Approach?

• Size and fragmentation of the Australian hospital
  supply chain.
• Different business processes, technologies and
  management approaches already add costs.
• Inconsistent implementation of e-commerce will
  further entrench fragmentation, reducing
  potential gains and deterring industry
  participation.

8
Structure Task Force
Task Force Established July 2000 to collaborate
on e-commerce. Vision. Purpose for each working
group. Provide resources, general direction,
remove roadblocks. Monitor progress, steer, and
report to NHIMAC/AHMAC.
Electronically Connecting Trading Partners How
to improve towards an optimal supply chain.
Understand end-to-end processes and critical
success factors. Implementation priorities.
Standards Develop and report standards within an
overarching framework for priority areas.
Standard Contract Terms and Conditions Develop
standard hospital contract and request for tender
documents.
Performance Measurement Develop a performance
management tool with KPIs that can be benchmarked
across Australian hospitals.
Product Numbering EAN, HIBC
Messaging Datasets, other.
Supplier (Partner) Engagement Strategies for
roll-out of Task Force programs to critical mass.
Facilitation of adoption of working group
guidelines. Event planning coordination.
Pilots. Roll-out.
9
Electronically Connecting Trading Partners
Working Group

• Developed a Business Framework.
• Describes the building blocks for achieving the
  vision of an OPTIMAL SUPPLY CHAIN in the
  Australian Health Sector.
• Key factor is collaboration between trading
  partners to streamline shared processes and
  establish efficient, effective and accurate data
  exchanges.
• It complements the more technical Standards
  Framework document.

10
Performance Measurement Working Group

• Developed a Guideline for Hospitals.
• Steps through a process for putting the stake in
  the ground in terms of where we are today -
  current performance.
• Hospitals can measure performance before and
  after any change (eg. as a result of streamlining
  processes).
• Determine/demonstrate benefits of
  e-commerce/change.
• Includes national KPIs for benchmarking between
  similar hospitals (services, size etc).

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Standardised Approach to Contract Terms and
Conditions Working Group

• Developed a standard contract for the supply of
  goods and services to hospitals.
• Developed a standard request for tender document.
• High level of cooperation was required to come to
  consensus between jurisdictions on terms and
  conditions.
• Further work to be taken to move documents to the
  next level of maturity.

12
Supplier Engagement

• Facilitates implementation of Task Force
  deliverables and recommendations - particularly
  compliance to any standards.
• To influence e-commerce and supply chain reform
  directions in the Australian Health Sector.
• Arranges and promotes Annual Health Supply Chain
  Summit. Summit 2002 (Nov, Sydney)
• Next Health Supply Chain Summit in planning phase.

• Over 100 participants
• Representatives across the whole health sector
• Supported recommendations

13
Coordination with OtherNational Initiatives

• Therapeutic Goods Association
• Standards Australia
• National Office for the Information Economy
• Australian Procurement Construction Council
• SWEEP Project (Deakin University)
• Medicines Coding Council of Australia
• Commonwealth, State and Territory initiatives

14
In Summary

• High level of collaboration/ teamwork achieved
  within Task Force 5 Working Groups
• Broad agreement of National Directions in Supply
  Chain Reform
• Final phase of 2002/03 Task Force deliverables
  endorsed by AHMAC.
• Attend the Health Supply Chain Summit
  (July/Aug2004). Continued participation to
  progress national initiatives and uptake for the
  transition to an optimal electronic supply chain
  in health.

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Contacts

• www.health.vic.gov.au/supplychain
• New Site (Sept 2003)
• www.healthsupplychain.gov.au
• OR jane.dooley_at_dhs.vic.gov.au
• ? 613 9616 7008

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Thank You