The Integrated Supply Chain

David Lawson MCIPS

Chief Procurement Officer

Guy’s & St Thomas’ NHS Foundation Trust

Key Procurement Challenges in Healthcare

1) Over Ordering2) Inefficient final mile

1) Over Ordering

£8 b1% = £80 m10% = £800 m20% = £1.6 b

Hidden Cost

GSTT: ~10% (£8 m pa)

1) Over Ordering

CausesDo not

know what we have

Order errors –wrong product/ quantity/ price

Too many people

can order

Do not know when it will arrive

No Visibility

waste not measured

1) Over Ordering

£80 m

GSTT: Approach (2010-15), Inventory

Autom

ated Inventory System

‘Clunky’ ordering system

1) Over Ordering

£80 m

GSTT: Approach (2016+), Integrated P2P

Autom

ated Inventory System

‘Am

azon Style’ ordering system

1) Over Ordering

£80 m

GSTT: Approach: Role of GS1

Unique Identifier (GTINS): Give visibility- Stop duplicate

ordering between systems

- Enable track & trace of orders

- Measure performance

Autom

ated Inventory System

‘Am

azon Style’ ordering system

1) Over Ordering

£80 m5% = £4 m5% = £4 m

GSTT Approach: Saving Impact

Inventory Management

Integrated P2P10%

2) Final mile

Hidden CostNon-Patient Supply Chain: Current State

Ward Theatre

Proc

urem

ent

(Sup

plies

)

Phar

mac

y(&

Diet

etics

)

Bere

sden

(Lau

ndry

&Line

n)

ByW

ater

s(W

aste

Man

t.)

Cate

ring

ArjoH

untle

igh(B

ed M

attre

sses

)

Ster

ile

Serv

ices

DAILY DELIVERY/ COLLECTION LESS FREQUENT DELIVERY

Unifo

rms

Cras

h Tr

olley

Hous

ekee

ping

Wor

ks D

ept.

STORE STORE STORE

Offic

e De

pot

CDP

(Prin

t)

Bay C

urta

ins

Dire

ct Co

urier

LIFTS

2) Final mile

Hidden Cost

2) Final mile

GSTT Approach (2016+): Integrated SCMNon-Patient Supply Chain: Phase One (July 16)

Ward Theatre

Integ

rate

d “L

andin

g De

ck”

ByW

aters

(Was

te M

ant.)

ArjoH

untle

igh(B

ed M

attre

sses

)

DAILY DELIVERY/ COLLECTION LESS FREQUENT DELIVERY

Wor

ks D

ept.

INTEGRATED STORE

STORE

LIFTS

DEDICATED SUPPORT DEDICATED SUPPORT

SuppliesPharmacyHousekeepingLaundry & LinenUniformsCateringSterile ServicesCrash trolley

2) Final mile

GSTT Approach (2016+): Integrated SCMNon-Patient Supply Chain: Phase Two (Sept 16)

Ward Theatre

Integ

rate

d “L

andin

g De

ck”

DAILY DELIVERY/ COLLECTIONINTEGRATED

STORE

LIFTS

DEDICATED SUPPORT DEDICATED SUPPORT

PHASE ONE STREAMS +Waste Management Re-tender ReviewBed ManagementWorks dept store

2) Final mile

GSTT Approach (2016+): Integrated SCM

Landing Deck

Store

Supplies

Pharmacy

Facilities

2) Final mile

GSTT Approach: Role of GS1

Unique Identifiers: - GTINS – Product- GLNS – Location- GRAI – Palleys

Real-Time Visibility- Measure Performance- Drive Improvement

2) Final mile

GSTT Approach: Saving Impact

Space, 2,700 sq m

Free clinical staff time

Improve patient experience

£0.5m+ de-scope service contracts

Conclusion

Key Procurement Challenges 1, over ordering 2, in efficient final mileIntegrated processes/ systems provide a solution.GS1 critical to help underpin new solutions.

What is the future role of procurement?

The Integrated Supply Chain

David Lawson MCIPS

Chief Procurement Officer

Guy’s & St Thomas’ NHS Foundation Trust