NHS Supply Chain Customer Board

NHS Supply Chain Customer Board Bi-Annual Report March 2013

www.supplychain.nhs.uk/customerboard

Foreword from the Chair Having retired from my position as Chief Executive of Sheffield Children’s NHS Foundation Trust in June 2011, after 40 years NHS service I was asked by Sir David Nicholson and Peter Coates (Commercial Director PICD, Department of Health) to chair a Customer Board working with NHS Supply Chain to improve usage of the national contract for the purchase and supply of consumable, medical, surgical and capital equipment for the NHS and to maximise the efficiencies that are available through spend commitment and collaboration. The NAO audit report in 2011, the subsequent Public Accounts Committee hearing and the publication of the Department of Health’s “NHS Procurement: Raising Our Game” in May 2012, have added further focus to the already recognised need to drive value and enhanced savings within our systems, ultimately allowing us to make best use of our resources and deliver better patient outcomes. The NHS has enormous spending power, and harnessing that is a key factor in realising savings.

The Customer Board’s Vision “To engage with our senior stakeholder community, listen to their pressures and challenges and respond through optimising the use and understanding of NHS Supply Chain’s scale and expertise to consistently drive value for money and provide the best healthcare and well-being for all” I hope this document provides a good update on the work of the Customer Board and outputs to date, and the manner in which the Board is seeking to derive best value from procurement within the NHS. To this end the Customer Board has been asked to lead a consultation exercise with their NHS Executive peers in April on the future of the NHS Supply Chain contract. To learn more about the activity of the Customer Board and who represents the NHS on it take a look at our website at www.supplychain.nhs.uk/customerboard I encourage you to take the time to understand NHS Supply Chain’s service and realise the value it can bring to your trust. Kind regards

Chris Sharratt OBE


Aims of the Customer Board The Customer Board’s purpose is to allow open and constructive communication between the NHS and NHS Supply Chain, with the ultimate aim of influencing the strategy of NHS Supply Chain to enable greater savings to be delivered to NHS trusts. This is being achieved through: • Developing a greater understanding of the needs of the NHS, and how NHS Supply Chain’s service offering can be enhanced to help meet the challenges facing trusts today.

• Provide an opportunity for trusts to actively influence NHS Supply Chain’s strategy. • Establish a forum for senior NHS customers to discuss current healthcare trends and major changes in patient service provision, and share their perspective on the focus of NHS Supply Chain.

• Improve communication between NHS Supply Chain and their customers across the NHS.

How the Customer Board Operates The board meets quarterly for a full day to discuss the opportunities, challenges and progress on the agreed workstreams initiated by the Customer Board. Following the launch of the board in November 2011, the initial priorities were agreed with its members and two key collaborative workstreams developed: Communications and Knowledge Management. Both workstreams have made considerable progress, made possible through strong engagement and participation from Board members and their trusts both at and between the quarterly meetings. In addition to delivering these two workstreams, there are a number of other projects that the Customer Board is actively engaged in to deliver improvements and value to the broader NHS.

If you have any questions or queries please contact us via [email protected] For further information on the activity of the board, please visit our website at: www.supplychain.nhs.uk/customerboard

Key Achievements and Areas of Focus NHS Procurement Strategy There has been strong debate and activity in support of the Department of Health’s “NHS Procurement: Raising Our Game” and subsequent “World Class Procurement in the NHS: Call for Evidence”, to which the Customer Board submitted a response. Customer Board members worked over the summer months to define their recommendations to the Department of Health about how to implement the NHS Procurement Standards within trusts and to define a clear set of metrics to give Procurement and Supply the right focus at board level within a trust. For further information regarding this process please visit http://www.dh.gov.uk/health/2012/05/ procurement-review/

Communications Workstream Raising the Profile of NHS Supply Chain The Customer Board felt it was important for NHS Supply Chain to raise its profile and better articulate its value, using suitable evidence, particularly at trust board level within the NHS. Messaging supported by appropriate financial or clinical evidence, has been developed with the Customer Board members and is now being utilised for Executive and Non-Executive engagement. Product and Innovation Adoption Best Practice Work is now focussed on understanding the enablers and barriers to product and innovation adoption within trusts, through an exercise to map the process within trusts. The aim of the activity is to understand the current practice within the NHS, develop a best practice guide and a supplier tool kit and then share it to enable accelerated adoption of products and services which will result in improved patient outcomes and savings to trusts. Capital Funding and Managed Equipment Services (MES) The Customer Board critiqued and endorsed an independent guide and reference point on capital funding and MES, which can be used by the NHS to avoid duplication in the cost of investigation by trusts undertaking their own MES procurement and preliminary activities.

Knowledge Management Workstream Transparency As the NHS seeks to drive more cost out of the system there is a growing need for greater transparency in the market. Customer Board members have assured themselves as to the governance and financial performance of the NHS Supply Chain contract and have developed a statement to this end to share with their peers in the NHS to seek greater engagement with the contract. To view in full please visit: http://www.supplychain.nhs.uk/ usefuldocuments Knowledge Management Customer Board members wanted to provide trust executives with business intelligence to improve decision - making ability, including better representation of savings available. A blueprint for knowledge management requirements within trusts, has been established.

Stakeholder Engagement Members have actively supported NHS Supply Chain accessing the right NHS stakeholder groups to seek better understanding of the national service and encourage greater engagement at a senior level.

Supplier Research The research aims to identify opportunities to improve the collaboration between NHS Supply Chain and suppliers as well as their view of the value of NHS Supply Chain as a supply route. Furthermore the objective is to identify opportunities for NHS Supply Chain and its supply base to collaborate to deliver further savings and carbon reduction efficiencies.

Who’s on the Customer Board The NHS Supply Chain Customer Board was launched in November 2011 and consists of 17 members, including representatives from across the NHS Chief Executive, Director of Finance, Non-Executive, Senior Clinical Manager and Procurement communities, with NHS Supply Chain being represented by Nick Gerrard Chief Executive Officer.

John Barrett Non Executive Director Royal Berkshire NHS Foundation Trust

Kevin Oxley Commercial Director North Tees and Hartlepool NHS Foundation Trust

Mike Bell Consultant Sheffield Children’s NHS Foundation Trust

Mark Roscrow Assistant Director of Shared Services Procurement Services NHS Wales Shared Services Partnership

Lee Bond Chief Financial Officer Hull and East Yorkshire Hospitals NHS Trust

Chris Sharratt Customer Board Chair

Nick Gerrard Chief Executive Officer NHS Supply Chain

Steve Shaw Strategic Commercial Advisor Department of Health

Mick Guymer Director of Finance Central Manchester University Hospitals NHS Foundation Trust

Bill Shields Chief Financial Officer Imperial College Healthcare NHS Trust

Paul Havey Finance Director Lancashire Teaching Hospitals NHS Foundation Trust

Philippa Slinger Chief Executive Heatherwood and Wexham Park Hospitals NHS Foundation Trust

Nathan Johnson Head of Procurement & Commercial Services University Hospital of North Staffordshire NHS Trust

Mandie Sunderland Chief Nurse Heart of England NHS Foundation Trust

Keith Mahoney Non Executive Director Barking, Havering and Redbridge University Hospitals NHS Trust

Mario Varela Managing Director London Procurement Programme

David Melbourne Acting Chief Executive and Chief Financial Officer Birmingham Children’s Hospital NHS Foundation Trust


NHS Supply Chain West Way Cotes Park Industrial Estate Alfreton, Derbyshire DE55 4QJ
