nhss procurement review workshop systems and logistics barry hurcombe nss logistics 4th nov 2014

NHSS Procurement Review Workshop Systems and Logistics

Barry HurcombeNSS Logistics4th Nov 2014

NDC Activity

• NDC picks and ships c90,000 lines per week• Over 3/4m items picked per week • Annually c5m lines over 43m items • Catalogue of c9500 stock keeping units (skus)• Exceeding throughput budget of £140m this year• Proven, well established transferable model

£-

£20,000,000

£40,000,000

£60,000,000

£80,000,000

£100,000,000

£120,000,000

£140,000,000

£160,000,000

£180,000,000

£200,000,000

07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15

NDC Revenue all Health Boards

NDC Activity

• NDC continues to grow each year (14/15 Projection £144m) 50% growth over last 5 years • General medical supplies, Janitorial supplies, non Pharmaceutical lines, Lab supplies, Theatre lines + Primary care supplies all within NDC coverage

• Rich in both data and expertise providing key performance data to help influence and support positive change: Operational KPI measures, Benchmarking, non compliant spend, preliminary demand management activity, SG Pandemic stock, support contract transition, support local transport optimisation programmes, WPM implementation & system support & maintenance, Cross Docking, Rationalisation / Consolidation

Rationalisation / Consolidation

A&A (excluding GG&C & Lan), 706

A&A and Lan (excluding GG&C), 444

Lan (excluding GG&C & A&A), 1097

Lan and GG&C (excluding A&A), 814

GG&C (excluding A&A & Lan), 1373

GG&C and A&A (excluding Lan), 415

NDC Product Overlap by SKU over 3mths

£0 - £300 £301 - £600 £601 - £900 £901 - £1200 £1201 - £1500 £1501 - £1800 £1801 - £2100 £2101 - £2400 £2401 - £2700 £2701 - £3000£3001 -

£2,400,000

Number of SKUs in Revenue Interval 1852 768 533 419 356 278 276 225 199 177 4359

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

No

of S

KUs

12 Months NDC Revenue:Number of SKUs segmented by revenue value

3153

• 53% of skus below £3k annual value

• Over 3000 with spend below £900

• Commonality of product usage across Health Boards is limited

GG&C (excluding A&A & Lan 1373


Commonality of products









15%

• Does variability have an impact on patient safety?• Does variability have a potential training impact?• Does variability have an impact on savings?

NDC Activity

• NDC is a proven, well established and transferable model

• So what’s next?

WPM / Theatre Stock Management

WPM service introduced in conjunction with migration to NDC

• Projected Benefits• Releasing valuable clinical time (supporting time to care)• Reduction in ward stock holding • Reduction of ward stock obsolescence• Standardised process for ordering and receipt• Bar code data capture to avoid transposition errors• Trained resource to manage stock on behalf of wards

• Level 1 service for everyone

• NDC Only counted• Introduced in Primary Care• WPM provided to Theatres• Relationships well developed• New items not included• Reviews regularly carried out• No consistency of ward stock layout

• Level 1, 2 & 3 service

• All items counted• Only available in Acute sites• No WPM offered to Theatres • Relationships strained• New items added routinely• Reviews not carried out• Positioning of Ward stock consistent across wards

WPM Consistency of Deployment

Are we getting the most out of the system and the service ?Is the local knowledge available to extract the information you need for decision making?Is there an optimum approach we should all follow?Do we need a web accessible solution?

Theatre Stock Management-Why?

• Limited visibility of real time stock availability and value

• Significant levels of overstock

• Reliance on manual stock control & ordering & knowledge of stores person

• Pockets of safety stock (squirreling)

• Limited electronic facility for batch control or tracking (Manual recording in place in most areas)

• Limited ability to determine costs per procedure, or by patient or by clinician

• No ability to confirm or track consignment stock usage

• No linkage with Theatre’s procedure scheduling systems

• Impact of potential legislation on GS1 barcode scanning

Theatre Stock Management-Why?

• Limited visibility of real time stock availability and value• System provides real time visibility of stock position and value

• Significant levels of overstock • System holds optimum stock levels and reorders only after consumption

• Reliance on manual stock control, ordering & knowledge of stores person• Stock requisition generated on consumption & interfaced through Pecos

• Pockets of safety stock (squirreling) • System provides visibility of all stock held

• Limited electronic facility for batch control or tracking (Manual recording in place in most areas)• System will capture batch codes for tracking

• Limited ability to determine costs per procedure, or by patient or by clinician• data extraction easily obtained for reporting

• No ability to confirm or track consignment stock usage• System provides real time visibility of stock position and usage

• No linkage with Theatre’s procedure scheduling systems• data extraction easily obtained for reporting

• Impact of potential legislation on GS1 barcode scanning• Will be able to read GS1 barcodes

Theatre Stock ManagementCurrent Programme Plan

• Powergate Pilot in place in Dumfries and Galloway

• NHS Tayside deployment of Powergate agreed and engagement commenced

• NHS Lothian agreed in principle for Powergate deployment

• Keen interest in progressing Powergate Theatre Stock Solution expressed from National waiting Time Centre , NHS Ayrshire and Arran and NHS Lanarkshire

• View of experience from Chris Sanderson (NHS D&G)

nhss procurement review workshop systems and logistics barry hurcombe nss logistics 4th nov 2014

Documents

limited slide

c9500 stock

ndc activity ndc picks

sg pandemic stock

track consignment stock

ndc projected benefits

primary care wpm

ndc coverage rich