July 14th, 2016
Redesign of Procurement
Gloucestershire NHS Foundation Trust
Recent department of health initiatives together with the e-revolution have combined to change the face of NHS procurement. Redesign and behaviour change on a large scale can be hugely challenging for hospital trusts but if the right processes are introduced in the right way enormous savings can be made.
Gloucestershire NHS Foundation Trust has an annual non pay procurement spend of £88 million. The population of Gloucestershire are served by two Acute hospitals at Gloucester and Cheltenham, a Partnership Trust and PCT. It is a complex environment with ever increasing patient services and demands, which in turn requires best practice procurement solutions to improve customer service and reduce both administration costs and procurement spend to help the Trusts meet their health and financial obligations.
The Gershon report has set challenging targets to improve back office efficiencies across the public sector with procurement highlighted as a key area for change. The Consultancy Company was asked to implement a procurement to pay system across the health community in Gloucestershire. This project encompassed the re-design and re-engineering of the procurement function to combine ‘best in class’ integration of technologies and systems thinking, to provide online catalogues and ordering, automatic invoice matching and a total process where only exceptions are managed.
The project also required a significant change in procurement strategy, moving from a centralised procurement order processing system to a devolved system making budget holders and the user community responsible for raising, authorising and processing their own procurement orders.
The Consultancy Company selected and implemented a market place solution for trading online. We identified the need to radically improve contracting through total cross-county visibility of spend and the need to bring all items purchased through local purchase orders under the procurement umbrella. Our objectives were as follows:
- Creation of an e-market place hosting supplier catalogues
- Design and implementation of a web-based procurement user interface
- Database clean-up and restructure
“I was highly impressed with the efforts and professionalism of The Consultancy Company team who brought the project in on budget and worked through some tough periods of staff culture change.”
Gloucestershire Hospitals NHS Foundation Trust
- Redesigned user security
- Improved controls
- Enhanced reporting
- Training over 1000 users throughout the health community
- Provision of a robust end-to-end project management process
- Projected £7.9 million savings over five years
- More accountability and transparency of procurement function
- Use of best procurement technologies
- A long term procurement strategy that is understood and supported by all
- Greater speed and efficiency of procurement
Our experienced team of consultants successfully delivered this complex project which encompassed a myriad of procurement systems across many diverse locations and within a shared service environment to three partnering Trusts. The Consultancy Company is not just about reports, concepts, strategy, but also about deploying experienced people who can work in a team environment to get the job done and bring your people with you.
For an in-depth discussion please contact:
Aidan Salter, Managing Director – 07801 039600,