Lord Carter of Coles published his interim report for the ‘Review of Operational Productivity in NHS providers’ in June 2015.
The ambition of this review and the prize it seeks is huge. Based on the data so far available he believes that savings of up to £5bn per annum could be realised by 2020, with optimisation of procurement contributing at least £1bn of savings, and more if electronic procurement is used to reduce holding levels and wastage of pharmaceuticals.
Just considering procurement of everyday consumables, high-value medical devices and common goods & services it is clear that there is huge price variability (>35% in some cases), real challenges in invoice matching (18% matching across the cohort of 20 hospitals surveyed) and ineffective catalogue management (500,000 items vs best practice of 6,000 - 9,000 items).
His recommendations in this area are clear; implement an Adjusted Treatment Index to measure performance, develop a ‘model NHS hospital’ framework that describes best practice, optimise pharmacy while maintaining or improving patient outcomes and develop an effective and efficient approach to catalogue management.
But he also recognises that change must come from the within the NHS itself, supported by, but not led from the centre.
That’s where Virtualstock’s The Edge comes in.
We are working with the NHS’ largest teaching hospital to transform their Purchase To Pay process, delivering control, compliance and an optimised catalogue.
The first phase will enrol the catalogues and prices of their largest suppliers, which will cover around 60% of their consumables spend. This will be followed by enrolling the long tail of smaller suppliers, allowing them to make their full ranges available.
Requisitioners and category managers will have rich product data, price transparency and product availability information at their finger tips so that they can make the best purchasing decisions.
The second phase will be to open up the platform for order management, which will give all stakeholders end to end visibility of the supply chain, order status and procurement performance.
However, once suppliers have loaded their catalogues these can then be exposed to any other NHS Trust that they supply or indeed want to supply. And any NHS Trust can discover new suppliers.
Virtualstock’s The Edge, delivering cost effective and scaleable change, led from within the Trusts themselves, ensuring best practice and best prices at the point of purchase.
And without IT change on the critical path.