Policy: Procurement Policy

Transcription

1 Policy: Procurement Policy Executive or Associate Director lead Policy author/ lead Feedback on implementation to Mr. Phillip Easthope, Executive Director of Finance Mr. Malcolm Littlewood, Head of Procurement Mr. Malcolm Littlewood, Head of Procurement Date of draft July 2015 Dates of consultation period December 2015 Date of ratification January 2016/ April 2016 Ratified by Executive Directors Group/ Audit & Assurance Committee Date of issue Date for review One year from issue Target audience All Trust Staff Policy Version and advice on document history, availability and storage Draft document created July 2015 Procurement Policy (Final) Page 1 of 16

2 Contents Section Page 1 Introduction 3 2 Procurement Principles 5 3 Financial Scope 6 4 Compliance 6 5 Stock Control & Receipt & Distribution Activities 9 6 Sustainability 9 7 Deliverables 14 8 Conclusion 16 9 References Contact Details Appendices (on request) a. Procurement Development Programme for the NHS 2013 b. NHS Standards for Procurement (2 nd Edition) 2013 c. Better Procurement, Better Value, Better Care 2013 d. NHS e-procurement Strategy 2014 Procurement Policy (Final) Page 2 of 16

3 1. Introduction 1.1 National Context In November 2015 the Chancellor announced that the health budget will continue to be protected until 2020/21. However even with this protection these are significantly challenging times for the health service. The current and future economic outlook requires us to work differently, delivering more with less resource, The government expects the NHS to deliver 22 billion of efficiency savings in the Five Year Forward Review With demand continuing to increase in the NHS, including this Trust, the need to ensure we obtain maximum value out of every pound spent is crucial. Nationally, transforming the approach to procurement is an urgent priority. The Department of Health document, Better Procurement, Better Value, Better Care outlines the national goal as a minimum is to ensure non-pay expenditure is inflation free until at least the end of 2015/16. This effectively means the NHS needs to find over 1.5 billion in efficiencies from its procurement of goods and services. In 2011 the National Audit Office also identified the potential of 500m savings through better procurement. The NHS eprocurement Strategy was launched in April eprocurement is the application of technology to automate the exchange of procurement information throughout the supply chain which is about making procurement processes faster and more efficient. The NHS eprocurement Strategy refers to NHS providers focusing on: Implementation of international standards, supported by enabling national infrastructure, to achieve straight-through-processing, where transactions are made from machine to machine with little or no human intervention; Greater use of procurement intelligence and sourcing solutions to improve the outcomes of contracting activity; Benchmarking of procurement data, to enable NHS providers to compare prices with their peers and increase competition among the supplier base. The global standards to be adopted by the NHS include: GS1 (for product coding, location coding and data synchronisation) PEPPOL (for purchase order, advice note and invoice messaging) To support the national Procurement agenda a new NHS Procurement Development Oversight Board and NHS Procurement Delivery Board has been established to ensure there is a common policy for NHS procurement and ensure the NHS is using private sector best practice and expertise. The need for more integration and partnership working between care providers and suppliers and the proliferation of technology in ICT, Fleet and Estates are a powerful catalyst for change. This enables providers to improve the delivery of healthcare services and reach greater numbers of patients in community and home settings. 1.2 Local Context At the very heart of our five year integrated strategic plan is our vision to provide world class care for the communities we serve which can be achieved through continually improving patient care, setting the highest standards of performance, always learning and spending public money wisely. Our Procurement Policy is aligned to our five year plan and is focused on the development of a modern, effective and efficient procurement capability within the Trust that delivers value for money, supports innovation and growth and most importantly delivers the highest quality Service User care. Procurement Policy (Final) Page 3 of 16

4 The management of Procurement is essential to the efficiency and effectiveness of both clinical and support services and facilitating the introduction of new innovative technologies and supply agreements. Service User care depends on the guaranteed availability of quality equipment, materials and services. Accountability for the expenditure of taxpayer s money requires that sound economic decisions are taken in relation to procurement. The cost pressures facing us are considerable and procurement has a key role to play in securing better value for every pound spent on goods and services. We cannot deliver required efficiencies without a constant focus on costs and if we are to protect our services we will expect our suppliers to work with us to reduce costs and prices whilst ensuring innovation. It is essential that procurement understands supplier market strategies and their drive to continue to fragment the NHS market place to their advantage. To combat this, the Trust intends to develop the role of category management specialists who will develop a comprehensive knowledge of their market sector and the supplier strategies used. Our ambition for eprocurement is for all purchase-to-pay transactions and category management activities to be undertaken by electronic means. The national eprocurement strategy requires NHS acute foundation and non-foundation trusts during 2014/15 to develop and implement a trust board approved GS1 and PEPPOL adoption plan and therefore although not mandated to do so as a nonacute trust, we will commence development and implementation of GS1 coding once updated guidance has been received from the Department of Health in 2015/16. In line with national policy the Trust Board approved the development of a Procurement Policy. This document takes account of Government changes, together with current issues and developments which impact on supply activity. This includes supporting the Trust in an increasingly competitive environment and delivery of our five year strategy. This policy identifies areas for on-going improvement and review together with initiatives that represent transformation in the way we buy goods and services, from the systems we have in place and the processes that we follow. It recognises and endorses the key recommendations of the Best Practice Guidelines NHS Procurement Raising Our Game and is aligned with the NHS Standards of Procurement, and recognition of further DH publications, Better Procurement, Better Value, Better Care (2013) and the NHS e Procurement Strategy and Procurement Transparency (2014). These documents will be the framework around which improvements in procurement performance are measured and are available as appendices for information. This policy provides focus on the 2016/17 financial year and sets the tone and direction of travel for subsequent years. The aim of the Procurement Department is: To provide a risk-balanced procurement [and contract management] service which improves service user outcomes by delivering the highest quality output at best value for money, whilst being legally compliant. 1.3 In defining a policy that delivers the aforementioned aim, it is important to identify the key [approaches] which support it. These are highlighted below: Working closely with internal customers to help them shape their requirements in order to increase the likelihood of a successful procurement outcome for the Trust Delivering creative and cost-competitive commercial solutions in the sourcing and purchase of a wide range of goods and services [and works] for the Trust. Procurement Policy (Final) Page 4 of 16

5 1.3.3 Engaging with other Trusts / Procurement Hubs and the DH Commercial Division in a collaborative manner to aggregate spend and maximise buying power Delivering creative and cost-effective stock control and supply chain solutions for a wide range of consumable items Establishing and maintaining sustainable procurement initiatives Supporting and developing the use of local providers of goods and services where it is commercially appropriate and where compliance with procurement legislation is not compromised Managing relationships with key suppliers in order to improve performance and stimulate innovation to deliver quality and value Increasing procurement performance transparency to drive behavioural change to improve and identify opportunities to deliver maximum value for money and support innovation across the Trust. 2. Procurement Principles 2.1 In carrying out its procurement activity, SHSC will adopt the following key principles: Transparency We will ensure tender opportunities are sufficiently and appropriately advertised using NHS Sourcing (Intend). We will ensure that any conflicts of interest are declared and appropriate action taken. We will publish our procurement decisions where appropriate Proportionality We will ensure that our procurement processes are proportionate to the value, complexity and risks associated with each particular requirement. We will ensure that potential suppliers are not excluded through overly burdensome or bureaucratic processes Equality We will ensure that all suppliers have equal opportunity to compete for our business where appropriate. We will ensure that we treat all suppliers equally and that all financial and due diligence checks apply equally and are proportionate to the value of the particular requirement Non-Discrimination and Consistency We will apply Trust and National procurement policies and procedures consistently and fairly Efficiency We will standardise and simplify our procurement processes wherever possible Continuity We will work with the appropriate Stakeholders within the Trust to monitor the performance of service contracts to ensure that they continue to deliver best value for money as and when required. Procurement Policy (Final) Page 5 of 16

6 2.1.7 Development We will provide support to all suppliers and internal departments to encourage continual improvement in the quality of goods and services that are provided and, where it is in the public interest will target new service areas to encourage new entrants to the market Innovation We will encourage innovation from current and potential suppliers to ensure that the Trust can adopt existing innovation and stimulate new innovation to deliver quality and value both for Trust patients and for taxpayers. 3. Financial Scope / The total non-pay spend in 2014/15 was c million. This amount was spent with 1669 suppliers across a wide range of goods and services. Analysis of type of spend and of spend by supplier requires further investigation to determine an accurate figure of influenceable spend and the suppliers that make up this spend A key part of the Procurement Policy is to analyse this spend in order to identify opportunities for savings and also review the number of suppliers used by the Trust to consolidate/reduce where possible. The spend by supplier will be placed into one of four categories: 1. Estates and Facilities 2. Pharmacy and Medical 3. IT 4. Non-Medical Detailed analysis is planned on a supplier by supplier basis in order to establish an overall sourcing Policy to ensure that Procurement resource is focused on those areas of commercial activity that will deliver maximum financial benefit for the Trust As part of the annual CIP review for 2015/16, Procurement will (in conjunction with appropriate Stakeholders) establish target savings for each category based on the application of one or more of the following initiatives: Aggregation Standardisation Substitution Contract Re-Negotiation 4. Compliance 4.1 Procurement is responsible for ensuring that the Trust complies with all local, national and European procurement legislation. Purchasing activity will continue to be conducted in accordance with Trust Standing Orders, Standing Financial Instructions, and the Scheme of Delegations and with the relevant EU Public Procurement Regulations and Information Governance requirements. Procurement Policy (Final) Page 6 of 16

7 The Procurement Department are available to offer help and advice on when the Public Contracts Regulations apply to the purchase of Goods, Services and Works. 4.2 Commerciality Commercial activity in the sourcing of a wide range of goods and services for the Trust will depend on several factors Clinical Agreement to all clinical products standardisation programme which will support the patient safety agenda and work to reduce clinical risk whilst improving the quality of products used in the Trust. Establish an agreed mechanism for review and adoption of new technology and innovation in clinical products that delivers value for money and improves quality of patient care delivery Performance The current Performance indicators (NHS Procurement Dashboard) and strategic work plan will be refreshed to present more detailed and comprehensive spend data, demand, contract compliance together with measures for transactional efficiency and performance against carbon reduction targets. These reports will also be structured to produce relevant information at a Department level, to compliment the current financial reporting process (see section 7.11 for an example of the new proposed dashboard). A specific Key Performance Indicator will be introduced to measure the level of stakeholder satisfaction with procurement performance Procurement Influence and Expansion of Contract Coverage A continued aim of this policy is to maximise Procurement influence on the non-pay spend. This includes extending the role of Procurement to cover all non-pay expenditure The on-going work to consolidate the current data into meaningful comprehensive spend and demand information will enable improved engagement with departments and the supplier markets, to effectively target and influence any gaps in spend. We will maximise value for money in non-pay spend by the application of procurement and commercial expertise, to deliver a reduction in incumbent supplier spend, an improvement in catalogue management, sustainability and system efficiency We will also ensure best price by benchmarking current prices across the NHS to drive more transparency, pricing parity for the products and equipment utilised in the Trust. Procurement Savings, Strategic Sourcing and Supplier Management Procurement has an integral part to play in supporting the delivery of the Trusts overall cost improvement programme. Procurements contribution to key stakeholder CIP targets will be agreed following internal discussions with stakeholders and work plans will be produced to reflect this. Further work will be carried out during the year to identify savings opportunities that will support the delivery of Trust CIPs in subsequent years. The whole Trust requires continued procurement focus and the application of sound strategic sourcing methodologies in those areas of the delivery of the CIP that are influenced by Procurement: Procurement Policy (Final) Page 7 of 16

8 Continued targeted approach to high spend areas and top spend suppliers, applying competitive and modern purchasing techniques. In conjunction with department/finance teams formulate savings plans identifying those areas which will contribute to the savings target. Consolidate supply to reduce the number of suppliers used by the Trust. Effective contract and vendor management incorporating regular reviews to measure operational performance, activity and service improvements. Develop effective benchmarking with other similar organisations/networks. Consider, where appropriate the introduction of longer term agreements with major suppliers, including commitment expectations to realise savings benefits. Identify and promote lower cost products and sources of supply. Understand the logistics and supply chain cost to serve models and determine optimal supply routes, volumes and stocking options for consumables items. The Trust will continue to maximise the opportunities by collaborating with other organisations on procurement and supply activity in the following ways: North of England the Head of Procurement will lead the Trust s relationship with NOE, identifying and agreeing the joint sourcing work plan and ensuring that savings performance targets are delivered. NHS Supply Chain the Trust will continue to access contracts and services offered where they deliver appropriate benefits and best value. Crown Commercial Services on-line access to the public sectors national procurement portal providing a range of supply and service frameworks, with the facility to undertake online competitive exercises efficiently and within agreed best value criteria and terms. The Procurement Department will explore alternative collaborative opportunities when they arise and will make a commercial judgement as to their relevance, including other similar Trust services, in addition we will look at suitability and any potential commercial advantage for the Trust. A fundamental priority in ensuring that Procurement supports the delivery of quality patient care whilst ensuring value for money as part of the strategic sourcing program is the effective and ongoing engagement with clinical/non clinical staff by attending engagement meetings. Whilst in many clinical/non clinical areas good relationships have been developed there are still opportunities to improve engagement withal stakeholders, recognizing as well the integration of community provider services and the need to improve communications across these areas. There will be opportunities for existing and/or potential suppliers of equipment and consumable items to present outline proposals for consideration where there are opportunities to maintain or improve current levels of patient outcome or experience at reduced cost. Procurement Policy (Final) Page 8 of 16

9 5. Stock Control & Receipt & Distribution Activities 5.1 The Trust does not currently utilise the NHSSC EDC System for stock control. It is envisaged that this facility will, subject to Trust approval/funding, be adopted in 2016/17.E-requisitioning is currently carried out by end-user requisitioners using NHSSC stock module Procurement will work closely with the finance team to ensure the trust received the right product at the correct time at the agreed price. The Procurement Department will assist in the development of new and initiative ways to reduce cost though the supply chain and delivery of goods and services to all departments within the Trust. The Procurement Department will utilise strategic sourcing techniques to get the best products and services at the best value and will give continuous attention to improving and re-evaluating purchasing and the total supply chain. The Department will continue to develop purchase to pay transactional processes that confirm our contractual requirements with suppliers, allow for electronic receiving at the point of receipt (by either the Receiving Department or the end-user) and for paying for the goods or services through a range of payment options. The transactional processes will provide visible spend data through utilisation of financial, purchasing and inventory management data, informing demand and the sourcing programme. 6. Sustainability 6.1 Sustainable Procurement means improving the efficiency by which public money is spent whilst at the same time using market power to bring about major environmental and social benefits locally and globally. It is the process of purchasing goods, services and works that takes into account the social, economic and environmental impact that such purchasing has on people and communities whilst still achieving value. To achieve improved sustainable procurement this policy will ensure that goods and services procured by the Trust are designed, manufactured, delivered used and managed at end-of-life in an environmentally and socially responsible manner and forms an integral part of the Trusts overarching Sustainable Development Management Plan, approved by the Trust Board in 2015 The Trust has calculated its baseline carbon footprint of approximately 5600 tonnes of Co2. Adopting the nationally recognised flexible framework for sustainability and carbon reductions, nearly 60% of the NHS s total carbon footprint relate to the products and services it procures. Carbon emissions are associated with the extraction, processing, assembly, packaging, transport, storage and handling of products and materials that are consumed directly and indirectly by service providers. This equates to 20 billion every year spent by the NHS on goods and services, totalling over 11 million tonnes of CO2 per annum (SDU, 2012). To support sustainability across the Trust procurement will assist in the following areas:- Annual cost and demand reduction targets for all relevant non-pay expenditure Efficiency in Use to reduce waste Procurement of the right goods for the job, taking into account opportunities for substitution and innovation Procurement Policy (Final) Page 9 of 16

10 Managing supply chains not only to ensure value for money but that they are as local as possible by aggregating demand across a common range of goods and services and that ethical, human rights and employment standards are met The Public Services (Social Value) Act was passed at the end of February Under the Act, all public bodies in England and Wales are required to consider how the services they commission and procure might improve the economic, social and environmental well-being of the area. Procurement legislation and the Trust s own Standing Orders and Standing Financial Instructions limit the Trust s ability to favour local businesses, but there are numerous ways in which it can legitimately support local businesses including: Working proactively with appropriate stakeholders to support local businesses through consultation, face to face meetings to explain how to do business with the Trust, and obtain their feedback in order to improve processes and relevant documentation. Advertising Trust contracts below EU Tender Thresholds on the Trusts internet site to encourage local businesses and SME s (Small Medium Enterprises) to compete for business. Supporting and attending local Meet the Buyer events that may be hosted by the local Council or Chamber of Commerce. Using Government Procurement Cards to procure low value goods (often through local outlets). 6.2 Leadership, Governance & Control At Board level the Director of Finance is responsible for the Procurement function, with the Head of Procurement having operational responsibility for the delivery of the service. High level Corporate Governance and Trust policies are in place defining operational compliance. Controls for performance and risk are in place ensuring operating effectiveness is controlled, measured and managed. 6.3 Risk Management Procurement will establish a business continuity plan to ensure arrangements are in place for the supply of products and services in the event of an emergency situation. The plan will include any risks identified at national level, In addition updating to the existing contracts portfolio/database will commence in 2016/17 alongside the catalogue management roll-out programme, which will integrate with the business continuity plan and internal risk register, providing improved visibility. 6.4 Professional Competence & Development The delivery of the supply strategy requires that all staff involved in supply activity is developed to the appropriate level of competence, this includes anyone undertaking tender opportunities. Staff within the Procurement Department have been and will continue to undertake appropriate training and qualifications. All staff will have agreed KSF outlines for their posts and these will be used in their on-going appraisals supporting their personal development plans. Procurement Policy (Final) Page 10 of 16

11 6.5 Category Management Category management is where costs are analysed and broken down into significant categories of expenditure to allow the Trust to look at spend strategically and obtain best value for money. The future structure of the Procurement function will support the introduction of category management specialists who will develop a comprehensive knowledge of their market sector and the supplier strategies used, acting as a single point of contact. The main objectives and outcomes of category management include: Improved supplier engagement through: Measuring and increasing performance and commitment from suppliers Cost reduction through understanding of the supply market, cost structures and aspirations (supply and supplier strategies) Challenging the way we procure a category (e.g. e-auctions) Increase business interaction through: Developing closer stakeholder relationships Building strong commercial acumen Procurement being seen as change agents developing innovative solutions Working in partnership with stakeholders to control and simplify processes to drive supplier value Development of the Procurement team through: Increased understanding of the business Being viewed as commercial partners to the Trust Demonstrating commercial awareness and challenge into the organisation Being experts and developing deep understanding of market sectors 6.6 NHS Standards of Procurement The NHS Standards of Procurement support the recommendations from the Public Accounts Committee (V2 Update June 2013) by providing a clear vision of good procurement and identifies high quality procurement performance. The Standards enable the Trust to assess procurement performance and recognise areas for improvement to ensure value for money is delivered through its procurement activity and its procurement partners. The standards provide a structure for the Trust to work within to improve procurement performance and inform the direction and priority for any system level support. They are Procurement Policy (Final) Page 11 of 16

12 supported by the National QIPP Procurement programme and other system level initiatives. The standards provide a useful aid to the continuing success of procurement performance. The NHS Standards of Procurement cover four key areas: Leadership Process Partnership People Each area contains a number of measures, all of which comprise: The Standard How organisational performance will be improved from achieving the standard Maturity Levels 1 3 identifying the attributes of: Level 1 Building awareness and building blocks in place Level 2 Achieving making good progress Level 3 Excelling outstanding procurement performance 6.7 Suggested Indicators Each standard will be used by the Procurement Department to measure procurement performance and the indicators used to set goals for continuous improvement in procurement performance. The 4 measures are summarised as follows: A full copy of the NHS Standards of Procurement is available on request. Procurement Policy (Final) Page 12 of 16

13 The Trust will also adopt the values incorporated in the DoH document Better Procurement, Better Value, Better Care (August 2013). NHS trusts spent 20.6 billion in on goods and services. This is broken down into the broad categories summarised below: 5.5bn Drugs and Pharmacy 4.5bn Clinical supplies 0.6bn Rentals 0.5bn Transport 1.0bn Establishment 3.3bn Premises 0.3bn Consultancy 2.4bn Agency staff 1.3bn Non-Clinical supplies 0.3bn Training 0.2bn Healthcare from non-nhs bodies 0.6bn Miscellaneous These figures are indicative and are not necessarily representative of the spend data produced by SHSC. To guide and support the NHS have published an eprocurement strategy for the, setting out actions for the development of national and local infrastructure that s supports the adoption of GS1. The McKinsey report Strength in Unity identified recurring savings of 3 million and 5 million for a 600 bed acute trust, based on full implementation of global GS1 standards. As part of this strategy, the NHS will: Mandate through contracts the use of GS1 coding for the NHS. Create a single NHS GS1 data pool for the NHS to use in its systems. Centrally Invest in enabling Product Information Management and Messaging technologies. Create a single data warehouse for NHS procurement data. Define standards to ensure interoperability between e-procurement systems. Establish Standards for datasets and classification. Put implementation Support arrangements in place for trusts to draw upon. Implementing the e-procurement strategy, including the adoption of GS1, will enable trusts to share, compare and be transparent with their procurement information. This will not only help to hold public service to account, but will increase visibility of opportunities for SMEs, therefore supporting the economic recovery. As noted previously, the Trust, although not mandated to do so, will commence implementation of GS1 coding once further guidance has been received from the Department of Health. In local terms the adoption and implementation of an e-procurement strategy will deliver: Procurement Policy (Final) Page 13 of 16

14 Better informed procurement decisions based on timely and accurate data. Better benchmarking activity in comparing our performance with similar trusts. Better use of procurement resource in targeting opportunities that will deliver maximum benefit to the Trust. The NHS also recognises there is an urgent need to encourage transparency and benchmarking, in order to achieve this they will explore opportunities to: Increase transparency by requiring all providers of NHS healthcare through the NHS Standard Contract to publish all procurement data, including opportunities, expenditure and contracts on their websites and Contracts Finder. Develop, procure and implement a single, best-in-class NHS Spend Analysis and Price Benchmarking Service to streamline the data collection and benchmarking process, and enable Trusts to frequently and cost effectively compare prices across a wide range of goods and services. Implement a dashboard of procurement performance metrics to support internal management and governance, enable public reporting and facilitate the identification and exchange of good and best practice. A set of 7 core metrics have been developed and piloted for this purpose. This is based on three core areas:- Doing it well Doing it Efficiently Doing it Right 7. Deliverables 7.1 Further to a review of the procurement function and subsequent recommendations being accepted by the Trust, the procurement team will be refocused to reflect the need to move to a more strategic category function which will support the National and Trust direction of travel over the forthcoming years. 7.2 As part of this policy the procurement team will work with other departments to assist in the delivery of each department's CIP targets. 7.3 The Procurement team will embed best practice into each department by engaging each budget holder and assisting in utilising and establishing contracts where none exist. 7.4 Purchasing the cheapest item is not always the most cost effective; the procurement department will work with all departments and assist in the procurement of the correct items as part of the Trusts core principles. 7.5 We will work with and alongside any capital monitoring group to underpin the capital spend versus revenue spend. To do this the procurement team will identify any revenue implications of a capital spend and report these back to the group prior to the expenditure. 7.6 Support departments in reducing the impact of purchase-to-pay process, Procurement will look at initiatives to get the best value out of the P2P system and further support the supply chain process. Procurement Policy (Final) Page 14 of 16

15 Number 7.7 Work with the finance team to reduce the supplier list, (as appropriate) introduce better supplier management systems / procedures to enhance the current system. 7.8 Key suppliers to the Trust will be actively managed by the Procurement Team on a regular basis and work will commence to reduce the number of low value spend suppliers by aggregating demand where possible. 7.9 In line with National Strategy, Procurement will lead on the expansion of the roll out of electronic end user requisitioning, commence the development of electronic supplier catalogue management and implement electronic orders and work with Finance colleagues on electronic matching PO s to invoices Commence implementation of GS1 coding once further guidance has been received from the Department of Health We will provide management information through enhanced use of the NHS Procurement Dashboard We will produce a detailed implementation plan that will support the deliverables identified above Doing it Well Doing it Efficiently Doing it Right C1 - Impact on Patient Care RAG C3 - Cost Improvement RAG C6 - Standards of Procurement RAG Number of instances where patient outcome, experience or safety has been adversely affected by a lack of product or service availability R Value of contribution to cost improvement as a percentage of non pay expenditure C2 - Spend Control RAG C4 - Cost to Procure RAG Percentage of non pay expenditure captured electronically through purchase to pay systems 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% R 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Cost to procure as a percentage of non pay expenditure % 80.00% 60.00% 40.00% 20.00% 0.00% G Progress against the NHS Standards of Procurement A G Target Progress against standards Enter notes on NHS Standards of Procurement Commentary C5 - Collaboration RAG C7 - Staff Qualification RAG Percentage of non pay expenditure through national and/or collaborative purchasing arrangements G Percentage of recognised procurement staff with an appropriate formal procurement qualification(s) G Enter notes to assist interpretation of dashboard 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Procurement Policy (Final) Page 15 of 16

16 8. Conclusion The Procurement function within the Trust has a key role to play in maximising value for money, delivering financial sustainability, protecting front line patient services and driving innovation to improve the care we provide to the communities we serve. To do this we need to build a procurement function that can enable and drive change across the Trust. This Procurement Policy states the importance of effective supply management to the overall performance of the Trust and moves the procurement function forward significantly by transforming some of the key systems and processes to provide a more integrated and efficient service. It reflects the latest Department of Health thinking and policy in the need for improvements to NHS procurement activity and is designed to ensure that the procurement function becomes a champion of innovation and is responsive to creative ideas from both existing and potential suppliers. Procurement will endeavour to evaluate and support the adoption of innovative solutions at scale and pace across the Trust. The policy recognises the importance of Stakeholder Engagement within the Trust and local engagement within the community. This 3 year policy will be reviewed on an annual basis to ensure its relevance to the Trust s objectives. 9. References EU Procurement Directives Procurement development programme for the NHS 2013 NHS standards for Procurement (2 nd ed) 2013 NHS eprocurement Strategy 2014 Procurement Transparency 2014 Better Procurement, Better Value, Better Care 2013 Equalities Act 2010 Race Relations Amendment Act 2006 Disability Discrimination Act 2005 Sale of Goods and Services Act Social issues in procurement Human Rights Act 1998 Freedom of Information Act 2000 Health and Safety at Work Act 1974 Management of Health and Safety at Work Regulations 1999 FN Procedure 004 (version 2) FN Procedure 005 (version 2) 10. Contact details Title Name Phone Deputy Director of Finance James Sabin James.sabin@shsc.nhs.uk Head of Procurement Malcolm Littlewood Malcolm.littlewood@shsc.nhs.uk Asst Purchasing Manager Nathan Kelly Nathan.kelly@shsc.nhs.uk Procurement Policy (Final) Page 16 of 16