1. Supplier Forum 14 February 2011

2. Objectives of the day
Provide more information about NHS SBS and how we work
To gain an appreciation of some of the issues suppliers to the NHS face
To facilitate a forum for sharing of ideas
To enable feedback of concerns
To facilitate the ongoing sharing of information
To identify improvements and ways in which we could all work better to make this happen

3. Steria & Department of Health - a unique joint venture
Unique 50:50 JV
Commercial organisation
Joint governance
Customer focus
Best practice
World Class
Original shared service centres
NHS experienced people
Oracle EWA
Financial support
Management & Business Devt
Service optimisation
Best practice
Offshore capability
Commercial expertise
Surplus
Surplus
cost
savings
saving the NHS £250m over 10 years = 12,500 additional nurses

4. About NHS SBS Core Service Lines: Finance & Accounting Payroll & HR
Family Health Services
Commercial Procurement Solutions
Typical savings for Trusts of between 20% and 40%
Employing 1,430 people, including 670 in India
40% of NHS organisations are NHS SBS clients
27m people in England have NHS care from NHS SBS clients

5. Integrated Delivery model
Shared Services Delivery Model
Onshoring / Offshoring – but truly integrated systems
Integrated delivery – India : UK working together in a joined up approach as “One team”
Multi shift operations - 17 hours working window - Early morning working – job ready before NHS trusts staff arrives in office
Dedicated offshore transition team – cost efficient, understands offshore challenges and requirements

6. Customer Profile 130 Finance & Accounting clients
Over £31 billion payments / per annum
£12 billion of NHS debt recovered per annum
60,000+ trained users on the Oracle system
57 Payroll & HR clients
Paying 200,000 NHS employees
Processing 2.5 million payroll transactions per annum
Extending into HR Shared Services
16 Family Health Services clients
NE London sector – seven Trusts
East Midlands region – nine Trusts
50 Commercial Procurement Solutions clients

7. Voice of the Customer: “would recommend NHS SBS”
2007
2008
2009
2010
YES : 39%
YES: 80%
YES: 85%
YES: 95%
NHS Directors of Finance & HR

8. NHS SBS - World Class Hackett Global Benchmark
Hackett Value GridTM
2010
High 1Q 1Q
2007
Effectiveness
2004
Low
Efficiency
High
Other Companies in 2010
NHS SBS 8

9. Summary
NHS SBS on target to achieve savings for the NHS of £250m over 10 years and play a role in delivering QIPP back office targets
NAO verified at least £50 million cost savings to the NHS so far
Estimated revenues of around £53.4m in 2010 (12.6% growth)
a successful and profitable public/private sector partnership
Leveraging NHS SBS capability will result in far greater savings to the NHS
NHS SBS can be a key facilitator of change in the NHS – GP consortia, GP commissioning, smooth transition to new landscape
£1.06m royalty fee shared with NHS SBS clients in 2010 (in addition to cost and efficiency savings already achieved by NHS Trusts), and expect to do the same in 2011

10. GP Commissioning

11. “...the biggest planned overhaul of the NHS in England in its 63-year history”
19 January 2011
Presented in a White paper “Liberating the NHS” – currently going through parliament at second reading stage

12. Aims of the proposed changes
The main aim of the change is to
put patients at the heart of everything the NHS does;
focus on continuously improving those things that really matter to patients - the outcome of their healthcare;
empower and liberate clinicians to innovate, with the freedom to focus on improving healthcare services
To do this certain admin functions are being removed putting the control into the GP Practices, who will become part of a local consortia
There is also a review of the Arms Length Bodies such as NHS Direct, NHS Information Centre

13. Expected timeline PCT Commissioner Services PCT Provider Services
April 2011
April 2012
April 2013
April 2014
PCT Provider Services
PCT Commissioner Services
ALB’s & SHA’s
All trusts become foundation trusts
Gain Foundation status or cease to exist
Services to move to a new home
Organisation disappears
Organisation disappears

14. Commissioning will have 3 Main PillarsGP
Commissioning
Consortia
National
Commissioning
Board
National
Commissioning
Development
Programme
Commissioning
Support
These 3 groups will commission/buy healthcare so majority of their invoices will be from healthcare providers
Won’t own assets
Majority of non healthcare supplier invoices will be, temporary staff, travel and subsistence and office supplies
Commissioning support may come form PCT Clusters which are now forming
Until April 2013 you would invoice separate PCT (not cluster these are admin arrangements not legal entities), from April 2013 invoice new Commissioning support organisation

15. GP Practice / NHS Link

16. Serving a local community Leading Commissioning
Leading people
Leading a consortium
Serving a local community
Leading Commissioning
Leading improvement & innovation
Managing self
Forging partnerships
Partnering with patients & the public
Engaging professionals
Promoting research & development
Leading a team
Business leadership
Partnering with local authorities
Setting priorities
Continual quality improvement
Setting vision
Media & communication
Partnering with providers
Shaping demand
Promoting sustainability
Leading change
Horizon scanning
Evaluating population needs
Designing services
Governance
Protecting & promoting health
Leading contracting
Market shaping
Sharing commissioning
Points to mention:
5 domains, 24 competency areas
some more in-depth than others, for practice staff. We all need to be aware of & supportive of every one
every domain matters
holistic, collaborative, relational approach
includes both commissioning and provision
commissioning built on a foundation of partnerships and an agenda of serving the public health

17. Review and Comments

18. The business of care

19. choice, commerce and care
The health market
choice, commerce and care
Consortia:
Co-ordinate healthcare development and acute contracting for practices – manage risk pool
Care Providers:
Deliver care to tariff
Manage input prices/costs
Practices:
Holder of contracts
with provider and
consortia
Health Industry:
Supply goods, medicines, equipment, staff
And provide managed services
Reg Health Board:
Award Primary Care contracts and assess performance and healthcare with ties to local authorities and public health
Patients:
Choice of practice & provider

20. Increased scrutiny of procurement decisions
With healthcare organisations facing structural change to align activities to meet healthcare business objectives and pressures……. Challenges and opportunities balance out
Income suppressed in line with demand - QIPP and CIP challenges – Costs and risks from block contracts - Greater market competition and choice
Increased scrutiny of procurement decisions
Increased opportunity for focused optimisation of spend as commercial lever - freedom for collaboration and partnering - greater use of service/supply contracts - rewards for high performance - growth in private patient business

21. CPS - translating these challenges into simple service offers to meet healthcare business objectives
Systems to direct and manage caresupplies, drive costs down and manage risk
Insight to define, design and deliver improvements in care, and business process and performance, driving income

22. Procurement and SBS CPS solutions focus on understanding the management of costs, and focus on care
Cost of population health utilisation
Cost of patient pathway
Cost of medicines management
Cost of purchasing
Cost of provider performance and quality
Cost of outcomes
Cost of the business

23. The SBS Commercial Procurement Solutions
The business cycle driving our services
Understanding our costs and spend
Contracting compliantly to secure supplies, and drive value
Purchasing processes and systems to support day to day operations
Financial and accounts systems to manage transactions
Tailored Procurement and contracting solutions for bespoke needs

24. The SBS Commercial Procurement Solutions process aligned services
Spend
Contract
Catalogue
Purchase
Pay
Perform
The SBS Commercial Procurement Solutions
process aligned services

25. CPS – Products and services for business challenges.
SBS group interests
Optimising Spend Services:
Spend analysis and profiling
Legally compliant routing and aggregation
Optimisation analysis
Procurement Services:
Contract & framework portfolio
Contracting calendar
SAP
Supplier catalogues
Procurement :
Spend analysis tools
Etendering tools
Evaluation tools
Catalogue & P2P systems
Commercial services:
Procurement & contracting project management
Contract management services
Inventory management

26. The SBS CPS strategic sourcing `contracting’ offer
Spend
Spend capture and data cleansing & coding
Spend profiling
Spend & price benchmarking
Spend matching
Contract
Strategic sourcing opportunity assessments
Spend mapped to frameworks and contracts to secure supply and value
Rolling contracting programme
Enhanced contracting through national competitions and SAP
Managed contract performance and SRM
Catalogue
Catalogues of suppliers/products and prices
Maintained database
Integration service with trust systems
Links to spend benchmarking services and P2P

27. Strategy steps in increasing spend management
Spend Under Management Benchmarks*:
Laggards 30% - Industrial average 30-70% - Best in class 70%
Analysis of spend data
Data mapped to contracts and frameworks
Procurement plan to aggregate volumes and shape markets
Volume committed contracts and catalogues
Purchase to pay systems providing compliance, control and focused spending

28. Trust objectives Reduce Clinical variation Spend fragmentation
Increase
Best practise pathways
Product standardisation
Use of economies of scale

29. The vision for managed spend
Reduction in variation, improved performance
Aggregation of demand, driving value
Managed compliance, supporting control
Strategically spent and levered for value
All NHS £

30. Mini Competitions – Specific Agreements
Spend refined, aggregated and commited over time
SAP
Mini Competitions – Specific Agreements
Framework Agreements
All NHS expenditure covered by Frameworks/Contracts

31. The SAP pathway – The route to business performance and savings
Capacity Review
Rationalisation
Standardisation
Market engagement
Procurement
commitment
Contracting
Mobilisation
Compliance
Delivery

32. Innovation and Continuous improvement
Product
Phase 1
Pathway
Phase 2
Innovation and Continuous improvement
Phase 3
SAP Process
Analysis
- Review Spend data
- Benchmark Pricing
Pathway Efficiency Review
Review processes in pathway
Product use for patient/ task
Pathway workstreams
-Pathway Product workstreams
-Patient Level Costing
Clinical Review
-Share clinical expertise
-Consider NICE guidance
Product Validation
-Developing exact specifications
-Evidence based selection
Product efficiency
-Demand management
- Right product for patient/ task
Procurement
-Procure with commitment
Initial Standardisation
Deliverables
-Efficiency, savings, innovation
-Full Standardisation
Innovation and improvement
-New product development
-Implementation of innovative products
Implementation and savings
- Implement contractual outcome
Selection of Strategic Partner
Drive product development
Deliver further efficiency and utilisation savings
Savings and benefits delivery
-Establishment of ongoing KPI’s and targets
Project team; CPS, DOFS, SBS, Clinicians
Supporting; Procurement, Business partners
Project team; CPS, AQuA, NICE, MHRA, NPSA, Clinicians
Supporting; Procurement, DOFS, Business Partners
Project team; Clinicians, Strategic Suppliers, NICE
Supporting; CPS, MHRA, NPSA, Business Partners

33. Strategic Advantage Programme
We will support securing supplies, procuring
compliantly, and in optimising your spend volumes.
2.We will ensure there are business ready catalogues
for organisations to use in operational purchasing
3.We will continue to move frameworked volumes, committed customers, and commercially responsive suppliers closer together through continuous SAP rounds.
Agreements
Framework
Security of Supply
EU compliant procurement
Aggregation of expenditure
Catalogues
Supplier details
Product Pricing
Invoice Matching
Link to eprocurement
Strategic Advantage Programme
Supplier Rationalisation
Product standardisation
Contracted Volumes
Driven compliance

34. Getting Invoices Paid

35. Purchase to Pay Locations Four Staff 350 System Oracle 11.5.10i
End Users
55,000+
Procurement
eProc

36. Purchase to Pay AP Transactions 4.5 M Payment Value £31B Procurement
Scanned Invoices
3.75 M
Electronic
300,000 / 450,000

37. Purchase to Pay Returns 5% Payments Runs 25,000+ Suppliers 175,000 PO
40%
Non PO
60%

38. AP Overview Post and Scanning Paper and electronic Verification
Paper documents
Non PO
Rules engine

39. AP Overview PO
Notifications
Payments
Automated
Supplier
Compliance

40. Questions

41. Communication 175,000 suppliers 55,000 users 350 staff System Email
Clients
SBS
Suppliers
175,000 suppliers
55,000 users
350 staff
System
Outbound
Inbound
Reporting
Statements
Web

42. Action or Information? When Why What How All calls recorded
Case record created
Query or follow up undertaken
Automated log
Action Request
Process fix
Follow up
Case closed
Client
Fix
Query

43. Two way communication The client told me……….
You don’t tell us when it has gone wrong
The client told me……….
You don’t tell us when it was resolved
What dispute?

44. Lunch

45. Communication 5 Queries Overview of Invoice Status
Consistency of communication
Across suppliers
Across systems
Self Help
Improved support system for Service Desk
Auto information responses
Statement production
Customer Focus Groups

46. Process E-invoicing E- invoicing solutions being investigated
ed invoices
ADI files, etc
Invoice cost
Consistency of approach
E- invoicing solutions being investigated
Root-cause analysis with clients and suppliers
Process standardisation initiative

47. Service Context Knowledge about NHS SBS and the wider context
NHS SBS as a framework?
Forum on-going activity
Linked-in/huddlespace
Procurement Planning horizon being developed by CPS

48. Objectives of the day
Provide more information about NHS SBS and how we work
To gain an appreciation of some of the issues suppliers to the NHS face
To facilitate a forum for sharing of ideas
To enable feedback of concerns
To facilitate the ongoing sharing of information
To identify improvements and ways in which we could all work better to make this happen

49. Close