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eProcurement The NHS Experience Scott Haldane - Director of Finance / Deputy Chief Executive NHS National Services Scotland. Session Objectives. Overview of eProcurement [email protected] NHS Scotland approach Local implementation experience. What IS eProcurement?.

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Session objectives

eProcurementThe NHS ExperienceScott Haldane - Director of Finance / Deputy Chief Executive NHS National Services Scotland


Session objectives

Session Objectives

  • Overview of eProcurement [email protected]

  • NHS Scotland approach

  • Local implementation experience


What is eprocurement

What IS eProcurement?

  • Electronic tools that support and expedite the transactional purchasing process including:

    • The use of on line catalogues

    • Placing requisitions

    • Routing for approval

    • Sending to suppliers

(Essentially it is a buzzword for doing

procurement activities via the internet)


What is eprocurement scotl@nd

What is eProcurement [email protected]?

  • Scottish Executive-wide initiative

  • A nationally negotiated subscription based service

  • Harness internet-based technologies

  • A step-change in procurement practice

  • An environment for more effective SRM

  • A flexible approach that can be adapted across the Public Sector


Eprocurement scotl@nd is designed to achieve

PECOS

PECOS

PECOS

eProcurement [email protected] is designed to achieve:

  • improved process efficiency

  • improved Financial Control

  • Government eBusiness Targets

Scottish

Executive

Suppliers


Pecos is based on remote hosting

PECOS is based on Remote Hosting

  • PECOS application hosted by Elcom in Boston, Massachusetts

  • No new hardware or software required

  • Only require a web browser

  • Can be accessed from anywhere within your organisation

  • Available 24 hours, 7 days a week

  • Plug and Play


An opportunity for the nhs and local authorities

PECOS

PECOS

PECOS

An opportunity for the NHS (and Local Authorities?)

Scottish

Executive

Suppliers

NHS

Highland

Suppliers

NHS

Tayside

Suppliers


Analysis of the use of the system showed

PECOS

PECOS

PECOS

Analysis of the use of the System Showed:

the NHS was using different suppliers for the same things

Scottish

Executive

Supplier A

NHS

Highland

Supplier B

NHS

Tayside

Supplier C


Analysis of the system also showed

PECOS

PECOS

PECOS

Analysis of the system also showed:

even when we bought from the same suppliers, we bought slightly different thingsor the same things at different prices

Scottish

Executive

Supplier A

SE items & pricing

NHS

Highland

Supplier B

Highland items & pricing

Tayside items & pricing

NHS

Tayside


A bright idea nhs wide items and pricing

PECOS

A bright idea - NHS wide items and pricing

PECOS

NHS NSS

Stationery

Supplier

NHS items & pricing

PECOS

NHS items & pricing

IT Supplier 1

NHS

Highland

NHS items & pricing

IT Supplier 2

NHS

Tayside

Travel

Supplier

NHS items & pricing

But, we need to link it in to other activities


The challenge to improve procurement practice across the nhs

The challenge to improve procurement practice across the NHS

BEST PROCUREMENT IMPLEMENTATION (BPI)

ePROCUREMENT SCOTLAND

(PECOS)

BETTER BUYING

(STRATEGIC SOURCING)

PECOS

LOGISTICS

(Bulk Supplies to point

of use)


Impact of strategic sourcing approach

Impact of Strategic Sourcing approach:

Supplier

Supplier

NHS NSS

NSS items & pricing

BETTER

BUYING

(STRATEGIC

SOURCING)

Supplier

NHS items & pricing

NHS

Highland

Highland items & pricing

Supplier

NHS

Tayside

Tayside items & pricing

Supplier


Benefits

Benefits

  • Process efficiency

    • eAuctions

    • eTendering

  • Greater use of National Contracts

    • Strategic sourcing

  • Value for money from suppliers

  • Improved Financial Control

  • Government eBusiness Targets


What pecos is

What PECOS is:

  • A system that provides:

  • content of products

  • requisitions to be created on-line

  • approval for spend on-line

  • automatic transfer of order to supplier

  • full audit trail

  • reporting suite

  • contract compliance

  • reduction in time taken to process documentation

  • reduction in overall lead time

  • reduction in stock required

  • reduction in paper records and hence stationery costs

  • improved query process


What pecos does

What PECOS does:

  • Access to Supplier Catalogues electronically

  • Orders handled on-line

    • eMail

    • Punch Out

    • CXML

      However, this assumes that supplies are eEnabled..

      a major risk for the programme!


What pecos isn t

What PECOS isnt:

A Finance system

but is capable of integration to FMIS

A Stock system

this is being assessed at a national level

An automatic link to a cost-centre budget

but can be used to effect greater budgetary control.


Next steps

Next Steps:

  • Full integration to Finance Systems

    • NHS Shared Services

    • Purchase to Pay improvements

  • Link with Ward Product Management Systems

  • Support NHS Logistics

  • Inter-Agency Collaboration

    • Streamlined Public Sector procurement.


Session objectives

eProcurement Scotland NHSScotland Blueprint Strategy

Hamish Paterson

NHSS ePS Programme Implementation Manager


Session objectives

Context.

  • The need to modernise Procurement and Supplies Management across NHSScotland (NHSS) is widely recognised.

  • NHSS needs to adopt a more corporate approach to improve service delivery, leverage total spend and significantly reduce costs.

  • A key enabler for this will be the effective deployment of the right technology - The eProcurement [email protected] (ePS) service

  • The Blueprint Strategy proposes a planned and co-ordinated roll out of ePS which maximises the use of available resources across NHSScotland.


Session objectives

A standard process for collecting and analysing the data from Health Boards was developed and followed.

  • Meet with Health Boards and agree the process to be followed

  • Data Collection from Health Boards

  • Data Validation exercise and review meetings with Health Boards

  • Summarise all Health Board data

  • Develop initial roll out/Blueprint strategy

  • Review proposed Blueprint strategy with all Health Boards

  • Sign-off and commitment to Blueprint by all Health Boards


Session objectives

Data collected from Health Boards was subject to a number of limitations that need to be acknowledged

  • Was a department fully implemented?

  • Were departments placing orders themselves or via Procurement?

  • Initial data was occasionally miscoded by users

  • There was some unmapped/obscure data that was difficult to define

  • Health Board resource availability to validate the data

  • Departments paying for goods/services did not necessarily instigate the purchase order


Session objectives

  • Drugs

  • Income

  • Recharges

  • Rent & Rates

  • Capital Expenditure - New Buildings

  • Professional Fees and Services (50% of spend)

  • Telecoms (being reviewed)

  • Training Expenses

  • Travel & Subsistence (excluding leased cars)

  • Postage & Carriage

  • Utilities (being reviewed)

  • Transportation & Portering

  • Other Admin/Board Expenses

  • Waste Disposal

  • Publications

  • Subscriptions & Information Services

Exclusions were agreed and the validated figures are in line with share of NHSS spend per Health Board.

Agreed exclusions from this phase

Approx % share of national spend per Health Board

In-scope expenditure for Health Boards based on 2004 data collected


Session objectives

Department Roll Out Sequence takes the following Components of the Blueprint Strategy into Account..

  • Award of Strategic Sourcing Contracts & Contract Renewal and possible savings that can be made

  • Fitting in with NHS Logistics timetable for the implementation of Ward Product Management

  • Current approved HB plans

  • Rolling out to the same departments at the same time (or pilot first then roll out all other departments together) to aid easier central supplier adoption

  • Size of Spend

  • Stock Integration

  • Shared Services


Session objectives

Blueprint Department Order for continued eProcurement rollout


Session objectives

Agreed Key performance indicators have been set up to measure the success of the implementations by Health Boards..

  • Key Performance Indicators

    • Percentage of In-scope spend covered

    • Value of transactions against target spend with respect to local project plan

  • Statistics that will also be tracked, although not measured against

    • Volume of transactions

    • Split between Level 1 & Level 2 catalogues

    • Number of suppliers adopted vs suppliers identified in local supplier adoption

    • Users trained vs planned for departments (estimate)

    • Active vs Registered Suppliers

    • Active vs Registered Users

    • Break-down of Supplier Content by catalogue, non-catalogue, punch-out

    • Break-down of Order Routing by fax, email, cXML


Session objectives

Agreed Health Board Targets


What do we have

What do we have.

  • An Agreed roll out strategy signed up to by all NHSS Scotland Health Boards

  • A Roll out plan that co-ordinates the efforts of the national and local resources and effort

  • Agreed KPI markers that are common to all organisations and are deliverable to the Scottish Executive

  • A co-ordinated plan that takes into account the needs of local and national initiatives


Session objectives

Everything you wanted to know about an eProcurement implementation

(but were afraid to ask)

Peter Shinton

Project Manager- eProcurement

NHS National Services Scotland


Session objectives

Scottish Executive Initiative- Scott

Scottish Executive Initiative- Scott

NHS Initiative- Margaret

NSS Initiative


Session objectives

Contract

compliance

Make strategic

sourcing decisions

Process

improvement

Accurate information,

produced quicker

Whats the theory?


Session objectives

Nothing on

PECOS that shouldnt be

Info for this still from Fin Systems

Do I have to raise an indent?

Easy to keep tabs on progress

and the practice?

Contract

compliance

Process

improvement

Accurate information,

produced quicker

Make strategic

sourcing decisions


Session objectives

Contract

compliance

Process

improvement

Accurate information,

produced quicker

Make strategic

sourcing decisions

Ensure only contract suppliers and items are adopted

Monitor all transactions through existing methods to ensure non-contract purchasing isnt continuing

What are you trying to improve?


Session objectives

Contract

compliance

Process

improvement

Accurate information,

produced quicker

Make strategic

sourcing decisions

Ensure the commodities are suitable for eProcurement

Dont add complexity / bureaucracy to the processes

Making todays processes electronic doesnt automatically improve them!

What are you trying to improve?


Session objectives

Make strategic

sourcing decisions

Contract

compliance

Process

improvement

Accurate information,

produced quicker

Decide what you want the information for

Should you push ALL transactions through the system, or are you targeting particular commodities?

What are you trying to improve?


Session objectives

Contract

compliance

Process

improvement

Accurate information,

produced quicker

Make strategic

sourcing decisions

Ensure you obtain the information you want

Ensure you have the opportunity and ability to make use of the information

What are you trying to improve?


Session objectives

To snatch defeat from the jaws of victory,

you must ensure you have no

  • clear implementation strategy

  • dedicated resource

  • defined scope or end point

  • clear responsibilities

  • amongst other things!

  • An implementation is a project

  • but

  • ongoing system use belongs to the business


Session objectives

Thank you for listening

Any questions?

Peter Shinton

Project Manager- eProcurement

Corporate Programme Office

( Tel: 0131 275 6769 (Internal No 6769)

+ Email:[email protected]

NHS National Services Scotland, Gyle Square, 1 South Gyle Crescent, Edinburgh, EH12 9EB


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