Applying an eProcurement system in Healthcare the EPOS paradigm

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Applying an eProcurement system in Healthcare
the EPOS paradigm
Kostis Kaggelidesk.kaggelides_at_gnomon.com.gr
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Presentation Overview

• eGoverment and Public eProcurement
• Procurement Basics (process and Issues)
• eProcurement Solutions and Landscape
• Auction Mechanisms
• Public eProcurement in the Healthcare
• EPOS Approach
• Conclusions

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eGoverment Public eProcurement

• eGoverment definition
• The change in governance due to the effect of ICT
• Key Actors
• Political System
• Administration
• Business
• Citizens
• Public eProcurement
• A radical change in the market dynamics in
  public sector of the economy
• Due to minimisation of information asymmetry and
• transparency
• Leading to a single electronic European market

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Public eProcurement

• High in the EU Agenda (EU Action Plan for legal
  framework preparation 12/2004)
• Characteristics
• Transparency / Public Nature
• European Dimension The Single European Electronic
  Market
• Open versus Closed Procedures
• Different approaches e-Tendering, auctioning,
  contracting
• Important Issues
• Standardization and codification of items
• Annual Procurement Plan
• Contract awards, frameworks and market dynamics
• Complaints
• Contact management
• Acceptance

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Procurement Basics Types

• Direct Procurement (core production relates)
• Raw materials
• Critical
• Frequent
• Indirect Procurement (non core production)
• MRO related
• Consumables
• Services
• Capital Equipment

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Procurement Basics The process

• Information Gathering
• RFI,RFQ,RFP
• Negotiation
• Contracting
• Fulfillment
• Evaluation
• Renewal

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eProcurement Solutions

• Buy-Side
• Sell-Side
• Exchanges

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eProcurement Landscape

• Content
• Supplier Databases
• Catalog Management
• Collaborative Manufacturing
• Analytics
• Sourcing Strategy Planning
• Spend Analysis
• Supplier Risk Analysis, Supplier Allocation
  Analysis
• Contract Administration
• Supplier Performance Analysis
• Pre-negotiation RFP,RFQ
• Transaction Automation
• Vertical Solutions

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eProcurement Generic Model

• Catalogues
• Needs Workflow / Demand Planning
• Procurement Planning
• Auctioning / Price Clearing
• Automation mechanisms

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An updated model

• Demand Planning (Buyer)
• RFP, RFQ (Buyer)
• Bid (Supplier)
• Contract Negotiation (Both)
• Purchase Order Issue (Buyer)
• Order Processing (Supplier)
• Order Fulfillment and Invoicing (Supplier)
• Payment (Buyer)
• Benchmarking Supplier (Buyer)
• Customer Service (Supplier)

• eP

• ERP

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Market Types Detailed
e-marketplaces
Pricing Clearing
Buy or Sell
Auction Design
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Winner Determination
e-auction
Constrain the Materials Procured
Award Criteria
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Bidding rules
e-auction
Award Criteria
Bid Type
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Mechanism Design
e-auction
Award Criteria
Bid Type
Mechanism
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A taxonomy of auction mechanisms
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Bidding in Multi-item Auction
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Public Procurement Issues

• Politically and legally acceptable award
  mechanisms that rearrange the public sector
  market dynamics
• Assure equality and transparency on a independent
  third party level
• Efficient demand and procurement planning for
  cost reduction
• Exploitation of the group buying characteristic
  of the public procurement

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Healthcare Public Procurement

• More issues added
• Nature and Complexity of the materials
• Organizational Issues
• The potential of group buying
• Human Resources (medical versus administrative
  personnel)
• Healthcare Supply Chain is Critical
• Involves businesses and citizens
• Has a spatial dimension
• Cost issues
• Market dynamics and Inertia

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The EPOS Solution Approach

• Catalogues (in German, English, Spanish, Greek,
  Flemish)
• Demand Planning
• Budgeting
• Procurement Planning
• Auctions
• Security / Logging

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features

• Vertical Public eProcurement specific
• Operational in EU, national and regional level
• Stand alone or interfaced with ERP
• Consistent multilingual catalogues
• Multiple codification schemata
• User profiling / personalisation
• Workflow based operation for purchasing and
  budgeting
• Support of advanced auctioning mechanisms

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Materials Nomenclature
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Material Nomenclature Pitfalls

• ERP vs eProcurement (different catalogues)
• Products vs. Items
• Scales
• Item categories dictate different procurement
  cycles
• Chemical reactors for Medical Labs
• One use devices
• Capital Equipment

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Macro Process
Needs
Budget
Budget
Budget
Small Centre
Ministry
RHS
Hospital
Healtcare Centre
Procurement Plan
Annual RHS Procurement Plan
Annual Hospital Procurement Plan
Unit Plan
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Budget Management
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Legal Issues Security Issues

• Infrastructure and Inertia rather than Technology
• PKI ?a? Digital Signatures
• Single Sign On (LDAP or RDBMS)
• HTTPS (SSL) / Digital Certificates
• Timestamping
• Legal Issues mandate security

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EPOS Screenshots
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EPOS Screenshots
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Conclusions

• Public eProcurement is a radical eGoverment
  application
• eProcurement must be envisioned as a vertical
  application solution
• Inertia lies in the market and administration
  dynamics
• EU SEEM Vision drives the change along with cost
  reduction drivers
• EPOS is a fully functional adaptable public
  eprocurement solution which can be adopted
  gradually

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Thank you