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) 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 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 Pre-assessment Day – what is expected, who should attend Assessment Day – what is expected, format and who should attend 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?