Procurement Finance and Informatics Away Day

Report
North West Procurement Survey
2014
1
Areas covered
•
•
•
•
•
Background
Highlights
Headcount & department makeup
Spend & financial profile
Procurement partners & systems
2
Background
• 2nd survey of the NW regional NHS procurement
landscape
• Shows staffing levels, qualifications, spend and financial
information, systems and how NW organisations interact
with procurement partners
• Allows Trusts to understand their position in the
landscape and helps Trusts build business cases for
investment in their procurement functions
A full data will be available to Heads of Procurement at:
www.nwprocurement.co.uk
3
Highlights
• 26 / 34 responses received
• 74% response rate
• 412 procurement staff
• £2.4bn of non-pay spend
• £1.1bn of influencable non-pay spend
• £39m 2014/15 savings target for procurement
• 33% of NW procurement staff MCIPS
(Excludes stores, Mat Man, AP and Secretarial)
4
Responses
• 26/34 in 2014
• 31/35 in 2013
• 5 Trusts who submitted in
2013 haven’t done so for
2014
Note:
Not all Trusts have
procurement departments.
In these cases their
procurement function is often
outsourced to another Trust in
close proximity.
TRUST
5 Boroughs Partnership NHS FT
Aintree Hospitals NHS Foundation Trust
Alder Hey Childrens NHS Foundation Trust
Blackpool Teaching Hospitals NHS FT
Bolton NHS Foundation Trust
Bridgewater Community Healthcare NHS Trust
Central Manchester University Hospitals NHS Foundation Trust
Cheshire & Wirral Partnership NHS Foundation Trust
Christie NHS Foundation Trust
Countess of Chester NHS Foundation Trust
East Cheshire NHS Trust
East Lancashire Hospitals NHS Trust
Greater Manchester West Mental Health NHS Foundation Trust
Lancashire Care NHS FT
Lancashire Teaching Hospitals NHS FT
Liverpool Community Health NHS Trust
Liverpool Heart and Chest NHS FT
Liverpool Women's NHS Foundation Trust
Mersey Care NHS Trust
Mid Cheshire Hospitals NHS Foundation Trust
North West Ambulance Service
Pennine Acute Hospitals NHS Trust
Pennine Care NHS Foundation Trust
Royal Liverpool and Broadgreen University Hospitals NHS Trust
Salford Royal Hospitals NHS Foundation Trust
Southport and Ormskirk Hospitals NHS Trust
St Helens and Knowsley Hospital NHS Trust
Stockport NHS Foundation Trust
Tameside & Glossop Acute Services NHS Foundation Trust
University Hospital of South Manchester NHS Foundation Trust
University Hospitals of Morecambe Bay NHS FT
Walton Neurology Centre NHS Foundation Trust
Warrington and Halton Hospitals NHS Foundation Trust
Wirral Community NHS Trust
Wirral University Teaching Hospital NHS Foundation Trust
Wrightington, Wigan & Leigh NHS Foundation Trust
2013
2014
31
26
5
Headcount & department makeup
Department size and budget
• 412 total staff in post
– Average of 16 per department
• For Trusts that submitted data in both years there is an
increase from 361 WTE in 2013 to 391 WTE 2014
– An increase of 8.3%
• 250 staff in front line procurement roles
• 162 staff in stores, materials management, AP and
secretarial
• The largest team consists of 55 and smallest team of 5
• Total departmental budgets range from £172k to £1,489k
– £488k mean average / 0.17% of Trust turnover
– £30k mean average budget per WTE
6
Headcount & department makeup
Regional dispersion of staff
Regional heat map of
procurement staff based on
reported headcount
• Shows concentration of staff
in both Liverpool and
Manchester
• Also shows the relative
proximity of teams in the
region to one another
• University Hospital
Morecambe Bay is furthest
North and Mid Cheshire
furthest south
7
Headcount & department makeup
AFC Banding
8
Headcount & department makeup
Change in establishment
9
Headcount & department makeup
Departmental budget as a % of Trust turnover
10
Headcount & department makeup
Qualification
• 83 staff are MCIPS in 2014
– 33.20% of staff in front line procurement roles
(excludes stores, materials management, accounts payable and secretarial)
• 77 staff were MCIPS in 2013
(in trusts which submitted in both years)
• 137 staff have some level of CIPS qualification (inc. MCIPS)
–
–
–
–
17 Associate Members (Level 5)
12 Diploma Member (Level 4)
16 Certificate Members (Level 2)
9 Student Members
11
Spend & financial profile
Regional picture
• £2.4bn non-pay spend managed by procurement
teams in NW
• £1.1bn of this reported as influencable by
procurement departments
• 60% is the mean average non-pay expenditure
covered by Purchase Order (lowest 23% and highest
96%)
– 60% was the average coverage reported in 2012/13
survey
12
Spend & financial profile
Savings
• SAVINGS
–
–
–
–
£319m NW CIP target for 2014/15
4.74% average CIP as percentage of Trust turnover
£29m savings achieved by procurement in 2013/14
0.40% average savings achieved by procurement in
2013/14 as a percentage of turnover
– £39m savings targeted by procurement for 2014/15
13
Spend & financial profile
Savings achieved as % of Trust turnover
14
Spend & financial profile
Procurement savings 13/14 vs target 14/15
15
Spend & financial profile
Purchase order coverage
16
Procurement partners & systems
Procurement partner
17
NORTH WEST PROCUREMENT SKILLS DEVELOPMENT
(PSD) UPDATE
LEARNING & DEVELOPMENT
NHS STANDARDS OF ACCREDITATION PEER REVIEWS
LEARNING & DEVELOPMENT UPDATE:
 Achilles EU Academy commenced November 2014
 Training Needs Analysis due to be sent out shortly
 Procurement Focus Working Group Away Day
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – CURRENTLY ACCREDITED (LEVEL 1)
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Aintree University Hospitals NHS Foundation Trust
Central Manchester University Hospitals NHS Foundation Trust
Lancashire Teaching Hospitals NHS Foundation Trust
North West Ambulance Service NHS Trust
Salford Royal NHS Foundation Trust
St Helens & Knowsley Hospitals NHS Trust
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – EXPRESSED AN INTEREST IN WORKING
TOWARDS ACCREDITATION
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5 Boroughs Partnership NHS Foundation Trust
Blackpool Teaching Hospitals NHS Foundation Trust
Bolton Hospital NHS Foundation Trust
East Lancashire Hospitals NHS Trust
Mersey Care NHS Trust
Southport & Ormskirk Hospitals NHS Trust
The Christie NHS Foundation Trust
The Walton Centre NHS Foundation Trust
Warrington & Halton Hospitals NHS Foundation Trust
Wrightington Wigan and Leigh NHS Foundation Trust
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – WORKING TOWARDS LEVEL 2
ACCREDITATION
 Aintree Hospitals NHS Foundation Trust
 Central Manchester University Hospitals NHS Foundation Trust
 North West Ambulance Service NHS Trust
Brian Mangan
NHS NW Procurement Development
&
John Pooley
Senior Accountancy Assistant
Health Education North West
Background
Findings to date and
next steps
View from an
“apprentice”
Background
• Fellowship
• HCSA and Supply Mgmt
articles – Sept/Nov
• Promotes profession
• CIPS, Colleges and PSD
engaged
IN
Procurement
http://www.cips.org/en-GB/membership/Fellowship/
Findings to date
Funding/indicative costs
• 16-18 training paid in full – option to pay
minimum wage rates if high training element
• Level 3 on - £1k contribution to training
• Higher level apprenticeships through to degree –
50% funding
Next steps
• In discussions with apprenticeships.gov etc re
Trailblazer project
• Initial feedback positive – scoping Trust
involvement and potential providers
• Timescales – May 15
John Pooley
My experience on an apprenticeship scheme
By John Pooley
Starting as an Apprentice
• Secured apprenticeship – before was studying joinery
• College – 2/3 of a degree within a year
• Work – 1 year – experience in different departments
• Life after – procure to pay – management accounts
Skills Gained from my Apprenticeship
• 1 Year’s experience – invaluable in current climate
• Qualification - chance without a degree – AAT
• Life balance between both work and college – used to
working life
• Foot in the door for future employment
• Apprenticeships are more practical and job-related than other
forms of learning
Employers gain from hiring an
Apprentice.
• Allows employer to develop apprentice with skills and
qualities that external market can not guarantee
• Help secure a supply of skilled young recruits – ageing
workforce
• Apprenticeships are less expensive to recruit and train
than experienced workers.
• Apprentices tend to stay with the organisation – also
provide a high number future managers
• A good Apprenticeship scheme could be reflected in an
enhanced reputation for the business both within the
industry and in the local community
To register an interest please email
[email protected]
Thank you - any questions?
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Sue Colbeck, Aintree Hospitals NHS Foundation Trust

Elizabeth McKenna, Salford Royal NHS Foundation Trust
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Principles of NHS Standards of Procurement
 People
 Leadership
 Partnerships
 Process

Maturity Levels
 Level 1 – Building - awareness and building blocks in place
 Level 2 – Achieving - making good, strong progress
 Level 3 – Excelling – outstanding procurement performance
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Planning process & gathering of information
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Pre-assessment Day – what is expected, who should attend

Assessment Day – what is expected, format and who should attend
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Assessment documentation and evidence
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Areas of best practice – website
 http://www.nwprocurement.co.uk look on the Share tab
 Lancashire Teaching – procurement procedure guidance documents on line
 St Helens and Knowsley – procurement based induction session

FSD Assessment levels and feedback
 Salford Level 3 Accredited ‘The organisation is well run, and highly regarded’
NHS STANDARDS OF PROCUREMENT NORTH WEST PEER
REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK
Any
questions?

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