STRATEGIC SOURCING. with. LASA National Congress 2015

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1 STRATEGIC SOURCING with

2 DPL are the largest and only successful strategic sourcing partner in the Australian and New Zealand healthcare sector

3 Operations : Quality & Regulatory Affairs Product Registration & Compliance QMS Accreditation ISO Remanufacturing ISO 9001 : 2008 Company wide

4 Operations : DP Logistics DPL ARE THE SECOND LARGEST SUPPLIER OF PRODUCTS TO THE H EALTHCARE SECTOR Food Grade Compliant Secure Warehouse CCTV Back to base security Restricted access Pest Control Rapid roller doors Temperature monitoring EDI Complaint 5,200m² Footprint 7,350 pallet spaces ISO9001 Accredited 6 high, narrow aisle Apron capable of stowing 6 containers Good access to main arterial roads Satellite warehouses in WA & Tasmania

5 Operations : DP Logistics S UPPLY C HAIN S OLUTIONS Next Day Deliveries Customised Solutions 3 rd Party Logistics 4 PL 5 PL True End to End Solution Product sourcing Branding Registration Quality Guarantee Storage Delivery

6

7 Quality Clinical Financial Aged Care Strategic Sourcing

8

9 R OLE OF P ROCUREMENT Direct Sourcing Financial & Clinical Independent Resource Product Evaluation Group Direct Sourcing Trial Sites IMPLEMENT Procurement Sites

10 R OLE OF P ROCUREMENT Target the big Multinational's who are not significantly affected by the Direct Sourcing initiative - Identify companies and categories - Perform financial analysis - Negotiate better deals Procurement Compliance as a KPI - Establish KPI s - Monitor performance - Enforce compliance Deliver financial results - Establish and agree budgets

11 1. Responsibility and accountability: 2. Scope of work 3. Choose your partners wisely 4. No shortage of opportunities 5. Manufacturer selection 6. Quality, Quality, Quality.

12 1. Responsibility and accountability: a. Choose an end to end partner that takes full responsibility for every step. b. This is not Aged Care s core business: Control what you can and outsource everything else. Qualified personel Registration End to end Solution Insurance Hong Kong Subsidiary Foreign entity Chinese based

13 2. Scope of work a. Insurance of product: transit, public and product liability ($20 million) b. Packaging c. Marketing: Product catalogue d. Graphic design e. TGA management Qualified personel Registration End to end Solution Insurance Hong Kong Subsidiary Foreign entity Chinese based

14 3. Choose your partners wisely a. A friend of a friend from China is not the partner of Aged Care b. Experts is the Aged Care partner of choice c. Consultants are not needed Local Quality Overseas

15 4. No shortage of opportunities a. Target opportunities b. Be clear on categories

16 5. Manufacturer Selection

17 6. Quality, Quality, Quality. a. Who will do the manufacturer audit initially b. Who will do in production run audit c. Who will audit and take responsibility before the product is shipped. Fit for purpose HSP Approval Quality ARTG CE

18 END

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