Selling to the NHS Welcome

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Selling to the NHSWelcome
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Selling to the NHSIan HeptonstallDirectorBusi
ness to Business
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Agenda

• Ian Heptonstall BtoB
• David Lawson (Director of Procurement Guys
  St.Thomas)
• Advantages and disadvantages of working with the
  public sector
• Different routes into the NHS
• Challenges for suppliers
• Purchasing in the NHS overview
• Opportunities for suppliers

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The NHS in numbers

• Last year, the NHS spent 22 billion on
  purchasing goods and services
• The NHS is made up of 485 trusts
• - acute hospitals
• - mental health trusts
• - foundation trusts
• - primary care trusts (PCTs)
• - ambulance trusts
• Also national and regional organisations
• Purchasing And Supply Agency
• 15 Collaborative Procurement Hubs
• NHS Supply Chain
• OGC

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Why work with the public sector - advantages

• Recession proof
• Marketing opportunities
• Credibility, word of mouth, repeat business
• Huge spend
• Good payers and proper arrangements
• Do not go bust!
• Work with a broad variety of suppliers
• Subject to rigours of procurement legislation

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Why work with the public sector - disadvantages

• Can be lengthy (expensive) process to win
  business
• Political impact can have an unexpected effect
• Decision making process is longer
• Different format, forms and tendering process

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How procurement works in the NHS?

• The NHS procures via the following routes
• National NHS Purchasing Supply Agency, NHS
  Supply Chain, OGC
• Regional Collaborative Procurement Hubs
• Local individual trusts

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NHS Purchasing Supply Agency (PASA)
www.pasa.nhs.uk

• Executive agency of Department of Health
• National framework agreements
• NHS-sid online supplier database 5th May
  changes . . .
• Provide practical procurement guidance, education
  and training
• Promote creativity from suppliers
• Encourage SMEs to do business with the NHS
• Promote sustainable development within the NHS
  supply chain
• Reduce the negative environmental and social
  impacts of procurement
• Encourage innovative products and technologies

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sid4health (NHS sid) www.sid4health.nhs
.uk

• 5th May Transition from NHS sid to sid4health
• Online database that hold suppliers' details and
  other pre-qualification information
• Search for open business opportunities
• Automated import of supplier data
• Manage multiple supplier profiles
• Submit pre-qualification data
• Manage organisation users
• Free of charge to all suppliers and NHS users

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NHS Supply Chain www.supplychain.nhs.uk

• NHS Supply Chain is a 10-year contract, operated
  by DHL Logistics, on behalf of the NHS Business
  Services Authority (NHSBSA).
• procurement , logistics, e-commerce, customer and
  supplier support
• Involved in 1.6 billion of the 5.3 billion NHS
  spend per annum
• NHS CAT Catalogue - 610,000 'in-scope' products
• Everyday supplies like stationery and bed linen
  to high-end clinical equipment
• To over 600 healthcare organisations
• Procurement calendar
• Spend Categories theatre/surgical services ,
  medical , food and facilities (including office
  supplies) , clinical markets ,  capital
  equipment.

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Office of Government Commerce
www.ogc.gov.uk

• The Office of Government Commerce (OGC) is an
  independent office of HM Treasury, established to
  help Government deliver best value from its
  spending.  The OGC works with central Government
  departments and other public sector
  organisations.
• OGCbuying.solutions
• An executive agency, OGCbuying.solutions,
  provides easy access to more than 500,000
  products and services, through a range of
  frameworks as well as a number of managed
  services, including telecommunications, e-mail
  and web services, energy and eCommerce.

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The NHS in London

• 5 billion spend in London
• 73 NHS trusts across London
• 42 acute and mental health
• 31 Primary care trusts
• For a full list of contacts
• www.pasa.nhs.uk/PASAWeb/NHSprocurement/Localprocu
  rement/

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The challenges for suppliers
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The challenges for suppliers
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The NHS in London

• London procurement programme - 80million of
  savings
• Seven main categories of spend
• Estates and Facilities
• IT and Telecoms
• Medical and Surgical
• Pharmacy
• Professional Services
• Purchased Healthcare (formerly Continuing Care)
• Supply Chain
• http//www.lpp.nhs.uk/ - for a full list of
  contacts

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Challenges we face
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The challenges for suppliers

• Cost reduction Year on year cash savings
• Collaboration contracts may get bigger unless
  split
• Understanding the procurement process
  requirements
• E-procurement (e tendering, purchasing cards,
  electronic ordering)
• The supply chain
• Who is the decision makers

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The challenges for suppliers

• Cost reduction Year on year cash savings
• Collaboration contracts may get bigger unless
  split
• Understanding the procurement process
  requirements
• E-procurement (e tendering, purchasing cards,
  electronic ordering)
• The supply chain
• Who is the decision makers

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Collaborative Procurement in England

• North West NWCPH has been operational since
  April 05.
• West Midlands - On October 1st 2006, HPC merged
  with the Lifesource CPH and the West Midlands
  Procurement Alliance
• Yorkshire and Humber YHCPH was formally
  established on 1 April 2007
• North East Procurement North East has become a
  collaborative procurement organisation since
  April 2007
• London The LPP works alongside trusts in
  London to deliver savings and improvements to
  enhance patient care
• South West -
• East of England EoECPH became operational on
  the 1 April 2007
• South Central PRO-CURE CPH formed in April
  2006. Solent

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Collaborative NHS procurement

• Procurement North East www.nhsprocurement-northe
  ast.nhs.uk
• North West Collaborative Procurement Hub
  www.nwcph.nhs.uk
• Yorkshire and Humber Commercial Procurement
  Collaborative www.yhcpc.nhs.uk
• East Midlands Resource Procurement Hub
  www.resource-cph.nhs.uk
• West Midlands Healthcare Purchasing Consortium
  www.hpc.nhs.uk
• PCT Commissioners http//www.hpc.nhs.uk/hcc.html
• East of England NHS Collaborative Procurement
  Hub www.eoecph.nhs.uk
• London Procurement Programme (LPP)
  www.lpp.nhs.uk
• South East Coast Procurement Hub www.seccph.nhs.u
  k
• South Central Pro-cure www.pro-cure.nhs.uk
• Solent www.porthosp.nhs.uk/solent-supplies.html
• South West
• Dorset and Somerset Procurement Confederation
• Gloucestershire Shared Procurement Service
• Peninsula Purchasing and Supply Alliance

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The challenges for suppliers

• Cost reduction Year on year cash savings
• Collaboration contracts may get bigger unless
  split
• Understanding the procurement process
  requirements
• E-procurement (e tendering, purchasing cards,
  electronic ordering)
• The supply chain
• Who is the decision makers

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Useful routes into large contracts . . .

• European legislation
• Over threshold not annual amount but overall
  contract value
• Goods services 90,319
• Works 3,497,313 million
• OJEU Official Journal of European Union
• www.ted.publications.eu.int
• www.BiPcontracts.com
• www.tenders.com
• www.tendersdirect.co.uk

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The challenges for suppliers

• Cost reduction Year on year cash savings
• Collaboration contracts may get bigger unless
  split
• Understanding the procurement process
  requirements
• E-procurement (e tendering, purchasing cards,
  electronic ordering)
• The supply chain
• Who is the decision makers

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The challenges for suppliers

• Cost reduction Year on year cash savings
• Collaboration contracts may get bigger unless
  split
• Understanding the procurement process
  requirements
• E-procurement (e tendering, purchasing cards,
  electronic ordering)
• The supply chain
• Who is the decision makers

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The process in large organisations . . .
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Criteria in tender evaluation

• Price or MEAT
• The FOUR policies
• Environmental impact
• Health Safety
• Quality policy
• Equal opportunities policy
• Technical ability
• Added value
• Innovation
• Community benefit

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Opportunities for local suppliers
Speed of service
Sustainability
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Summary

• A huge market, but patience and time needed
• Many ways into the NHS
• Buyers have competing pressures on them
• Need to be properly prepared

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Useful links

• www.pasa.nhs.uk
• www.supplychain.nhs.uk
• www.ogc.gov.uk
• http//www.sid4health.nhs.uk
• www.pasa.nhs.uk/sid
• www.supply2gov.uk
• www.ted.europa.eu

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• Thank You