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Ethical Procurement at NHS Supply Chain . ETI Conference 8/12/2010. AGENDA. NHS Supply Chain Company overview NHS Supply Chain Ethical Agenda Questions. Team structure. Martin Lee MD Supply Chain & Transformation. Alfreton Chester Runcorn. Clare Macintosh Sustainability Manager.

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Presentation Transcript
  • NHS Supply Chain Company overview
  • NHS Supply Chain Ethical Agenda
  • Questions
team structure
Team structure

Martin Lee

MD Supply Chain & Transformation




Clare Macintosh

Sustainability Manager

Colin Stuart

Sustainability Analyst

Sophie Cros

Sustainable Procurement Manager

Jane Bingham

Senior HRBP & CSR Lead


NHS Supply Chain..

Our strength is in our scale

  • A 10 year contract operating as an agent forthe NHS Business Services Authority (NHSBSA), providing long term security of supply to the NHS
  • NHS Supply Chain’s commercial return is capped ensuring 80% of savings flow back to trusts
  • all NHS Supply Chain’s financial transactions are transparent to the NHSBSA
  • powered by DHL – the global leader in logistics, bringing supply chain excellence to the NHS and reduced supply chain costs
  • targeted to deliver £1 billion savings to NHS by 2016
  • providing contract coverage compliant to EU regulation for £5 billion NHS non-pay spend, reducing legal risks to trusts
  • significant investments in infrastructure since 2006, saving NHS from investing in non core areas.
  • “We are your national service”
the nhs supply chain sustainability agenda
The NHS Supply Chain Sustainability Agenda

What is Sustainable Development within NHS Supply Chain?

‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’

we recognise the need to join up economic, social and environmental goals

Aim to be a leading organisation striving for excellence in our environmental performance

We have 3 key areas of activity

Sustainable Operations

Community and Social

Sustainable Procurement

We are governed by the Sustainability Memorandum of Understanding with the NHS BSA and also by DHL targets e.g. Go Green

One of NHS SC 4 Pillars (Customer proposition)

our aim
Our Aim

NHS Supply Chain aims to reduce as far as possible, adverse environmental and social and economic impacts occurred during the life cycle of products procured and ensure sustainable value for the NHS.

  • Security of Supply – organisations operating outside legal limits run the risk of closure.
  • Quality of Product – Sweat shops / child labour / poor working conditions / long working hours do not support the production of quality products.
  • Brand reputation - Part of our customer value proposition
what is sustainable procurement
What is Sustainable Procurement?


A process where an organisation meets it procurement needs whilst considering external social, environmental and economic factors.

what is a social factor
What is a social factor?

Health & Safety

Child Labour

Working Hours

Forced & Bonded Labour


Living Wage

Harsh Treatment

Casual Labour

Freedom of Association


Code of Conduct


Policy Alignment





Sustainable Procurement Forum





Base Code


Ethical Trade Working Group

Advice, training and resources




Social interest

Social interest

Policy Alignment


Value Proposition

sustainable procurement policy
Sustainable Procurement Policy

Flexible Framework

Supplier Code of Conduct

Business Case

Sustainable Development Strategy

Sustainable Procurement Policy

Baseline Assessment

Memorandum of Understanding


Annual Report



Contract Award

Govt Minimum Standards


Questions included:

- Are there concerns over labour standards within the supply chain

- Are there concerns over broader ethical issues (e.g. bribary, human right, etc) within the supply chain

Risk scoring per contract

supplier code of conduct
Supplier Code of Conduct
  • Child Labour
  • Forced Labour
  • Compensation and Working Hours
  • Discrimination
  • Laws and Ethical Standards
  • Health & Safety
  • Business Continuity Planning
  • Improper Payments/Bribery
  • Environment
  • Business Partner Dialogue
baseline questionnaire
Baseline Questionnaire
  • Confirmation of receipt of Supplier Code of Conduct
  • Confirmation of compliance
  • Ethical Policy Questions
  • Environmental Policy Questions
  • Manufacturing Locations
  • Assessment of Supply Base
  • Supplier Action Plan
    • Improvement Action Plan
fairly traded product ranges
Fairly traded product ranges
  • 1st Fairtrade garment to the NHS

introduced in May 2010 & coming soon:

doctor coats, nurse tunic, nurse dress…

  • Faitrade coffees
  • FSC paper
  • Importance of making it visible to our customer with our flag for “ethically sourced product”
thank you for your attention
Thank You for your attention

Sophie Cros

Sustainable Procurement Manager

Tel: 01244 582839


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