NHS London Procurement Partnership Medical & Surgical and Supply Chain update

1. NHS London Procurement Partnership Medical & Surgical and Supply Chain update John Watts, Director of Procurement, Barts and LPP NHS Lead

2. Agenda • Investment in M & S and Supply Chain by LPP • M & S Strategy Milestones • Change in approach

3. Investment in M & S and Supply Chain by NHS LPP • Announced at LPP Conference in January 2013 • Recognition of the successes achieved to date • Merger of M & S and Supply Chain workstreams • Recruitment of team of Senior Category Managers • Full complement in place from 1st April 2014

4. M & S and Supply Chain Strategy Cornerstones • Stakeholder engagement • Strategic management of key suppliers • Managing the market • Collaboration with other NHS hubs and NHSSC • Adaptable offering for all trusts/organisations in LPP • Development of resources and solutions

5. Change in approach • Centralisation of procurement activity formerly carried out by member trusts • Focus on management of categories rather than being a “frameworks factory” • Proactive approach to implementation of framework agreements and other opportunities with member trusts • Recognition of members as customers in delivering benefits • Participation in trust cost improvement meetings

6. NHS London Procurement Partnership Medical &Surgical and Supply Chain – meet the LPP team Marc Osborne, LPP Senior Workstream Lead

7. Marc Osborne – Senior Workstream Lead • Formerly Director of Procurement and Supply Chain (Acting) at UCLH • 28 Years in NHS procurement • 9 years M & S Procurement roles at Healthcare Purchasing Consortium • Previously Head of Procurement at Trusts in the West and South Midlands • MCIPS

8. Tom Wynne – Workstream Lead • Worked in Procurement for London • Transport and Surrey County Council • Head of Procurement at Royal Devon • and Exeter Healthcare NHS Trust • Associate Director of Procurement for • NHS Commercial Solutions overseeing • M & S Categories • Extensive experience of procurement, • stakeholder and account management • over 28 years • MCIPS

9. Debra Day – Senior Category Manager, Cardiology, Radiology and Renal • NHS Procurement: 34 years • Worked at trust, regional and national • level • NHS Supplies: • Print and stationery • National contracts oil and coal • M & S Procurement Manager at Barts • Senior Category Manager for M & S for • Barts then LPP from 2012 to date • MCIPS, MBA

10. Beth Watkins – Senior Category Manager, Orthopaedics • 3 years in private sector: Security • and Health Care sectors submitting bids to • Public Sector Bodies • 4 years at NHS Commercial Solutions as • Category Manager working on Orthopaedics, • Cardiology and Respiratory Medicine • Experienced in Stakeholder • Management and delivering solutions • Currently implementing Trauma • Framework agreement with LPP • Member Trusts • Student MCIPS

11. Chris Hassall – Senior Category Manager • NHS and private sector: 25 years • 5 years experience as Category • Specialist at HPC and HealthTrust • Europe • Category experience includes • Cardiology, Orthopaedics and • Procedure Packs • Now looking after Procedure Packs, • Audiology and Laparoscopy • Team support for Demand • Aggregation Pilot • Student MCIPS

12. Engagement with Heads of Procurement

13. “Better Procurement, Better Value, Better Care” £2billion savings by 2015 Improving outcomes at reduced cost through clinical procurement review partnerships • Multi disciplinary procurement review partnerships • Combine commercial and clinical outcome data to engage clinicians and inform change • Implement a clinically led approach to procurement in one region

14. NHS HOPs – LPP needs you !! • HOPs sometimes choose their own path rather than work with NHS LPP - why? • What do HOPs want out of the relationship with LPP? • We need to present a united and coherent front to the market – how are we going to do that?

15. This is what happens when we work together: • Procurement of ICDs and Pacemakers • Senior clinicians and procurement staff met with suppliers: unified voice • Prevented suppliers introducing new, innovative products at a higher cost • Net result: £2.5 million savings • Clinicians happy with the product range available • Choice maintained at affordable prices • No compromise on quality

16. This is what happens when we work together: • Implementation of LPP Trauma Framework • Pro-active approach with trusts • Early sign up to framework agreement • Identification and validation of savings • Opportunity analysis has led to change at certain trusts • Choice maintained at affordable prices

17. This is what happens when we work together: • Trauma implementations so far: • £1.259m saved

18. Trusts HOPs – LPP Needs You !!!!

19. Floorstock Contract Implementation at Barking, Havering and Redbridge University Hospitals NHS Trust

20. Agenda • Planning Prior to Contract signature • Analysis • Solution Design • Pre-Implementation • Current Status • Future Steps and Development

21. Planning Prior to Contract Signature • Product and supplier identification • Vendor engagement & 3-way negotiation • End user & staff engagement • Impact analysis • Analysis of product usage • trends • Project planning to define team

22. Analysis • 143 requisition points, 87 selected for Floorstock • Matched 574 lines from 1700 lines identified • £4.3 million NHSSC spend to be transferred to Office Depot • Phase 1: 67 lines. • Phase 2: additional 125 lines. • Phase 3: a further 289 lines • Phase 4: remaining 93 lines within a year • Savings potential £387k per annum

23. Analysis • Analysis of each requisition point - product lines to transfer to Office Depot • Mapping of NHSSC code to a new Office Depot Code for each product in collaboration with Office Depot • Impact analysis on operational service • IT interfaces • Equipment inc PDAs • Training

24. Solution Design • Adoption of the Avantec system PDA for top up (not essential to have cabinets to have the Avantec PDAs) • Interfaces - BHR: Purchase to Pay (SBS), NHSSC, Office Depot and Squadron • Checked the Wi-Fi connectivity at Queens and installed at KGH • Transferred the mapping onto the PDAs per requisition point – supported by Avantec • Data cleansing • Bar coding for Materials Management

25. Solution Design • Bar code labelling configuration • Replenishment programme – mapped to align to current NHSSC programme • Invoice design to meet the HMRC managed service VAT reclaim compliance • Electronic feed for invoices being developed • Cages and Tote Bins to be utilised • Tracking system for cages & totes using the PDA system. BHR will utilise this for parcel tracking around the hospital • Pilot & Testing ( 44 lines - £45k spend )

26. Pre Implementation • Avantec: equipment • Software and hardware • Compliant processes • Data build • Office Depot • Catalogue built, correct product codes and mapping • Vendor replenishment • Trust: • Demand history/forecasting • System data • Equipment operational • Staff training and competence

27. Status of Project at BHR • Live - Queen’s and King George’s Hospitals • 87 locations • Total lines 299, 15 vendors = £1.856M annual spend @ 9% saving = £167K (FYE) • Phase 3 and 4 vendors to follow up the Office Depot working with BHR to assess additional lines for inclusion

28. Future Developments • Monitor and review the operational and financial benefits and KPIs • Report usage, spend and savings • Establish Procurement Council • Further trusts need to be engaged • Look at products and further vendor engagement • Combine work with Demand Aggregation Pilot BHRUT specific • Solution design development. i.e. PDAs to be utilised in Goods Receiving/ Distribution and Courier Transport • Include printed stationery on top-up through PDAs • Further expansion of non stock materials management