1. HEALTH SERVICE IN IRELAND
Health Service Executive (HSE)
Head of Procurement
Mr. John Swords
InterTrade Cork – 19th October 2016

2. HBS organisation structure
HBS Structure
HBS organisation structure
Director General
National Director of HBS
Deputy Director of HBS
CRM
Finance
Procurement
Estates
ERPS HR

3. Procurement organisation structure
HBS Structure
Procurement organisation structure
HBS Shared Services
Procurement
Office of the Head of Procurement
Sourcing & Contracts
Logistics & Inventory Management
Systems

4. HBS Structure
Health Customers
Health
Section 38
Section 39
OGP
HSE

5. Health Procurement Structure

6. Other Sector Led Categories
Health Procurement Structure
Health Customers
HBS Procurement
Health Led Categories
Medical Care & Pharma
Equipment, Laboratory & Diagnostics
Medical Professional Services
Surgical Interventional Devices & Consumables
OGP Led Categories
Professional Services
Facilities Management and Maintenance
Utilities
ICT and Office Equipment
Marketing, Print and Stationery
Travel and HR Services
Fleet and Plant
Managed Services
Other Sector Led Categories
Local Government
Minor Building Works and Civils
Plant Hire
Defence
Defence and Security
Education
Veterinary and Agriculture
Laboratory Equipment

7. Guiding Principles Health Procurement Structure
The model is designed to comply with the requirements of the Government decision– “One Voice for Health”.
Compliance with national initiatives and contracts is mandatory, not optional.
Single integrated approach for health procurement.
Sustain the savings already achieved in the Health Sector.
HBS Procurement will represent Healthcare customers.

8. Procurement Structure
Health Procurement Structure
Procurement Structure
Head of Procurement
Office of the Head of Procurement
Sourcing / Contracting
Logistics
Systems

9. HSE Sourcing & Contracting

10. Sourcing Organisation / Operational Category Councils
Acute Services & Medical Devices
Community Funded Schemes
Disability
Medical Professional Services
Medical Devices Equipment
eHealth

11. Implementation Ways of Working
Health Business Services will sign overarching contracts on behalf of all health agencies.
Local sourcing teams:-
Spot Buying
Below Threshold Sourcing
Purchase to Pay Processing
Contract Management
Information Provision to HBS Procurement to support Sourcing / Performance Management
For unplanned sourcing projects, a Procurement Service Request (PSR) will be submitted by the Procurement Coordinator to HBS Sourcing & Contracting. Will be incorporated in national / local plans as appropriate.

12. Head of Health Sourcing
Sourcing / Contracts
Sourcing
MCP - Medical Care & Pharma
ELD – Equipment, Laboratory & Diagnostics
HTMPS – Health Technology & Medical Professional Services
SIDC – Surgical Interventional Devices & Consumables
Head of Health Sourcing
MCP
ELD
HTMPS
SIDC

13. Sourcing Sourcing / Contracts Medical Care Pharma (MCP)
Community Funded Schemes
Medical Devices & Care Products
Pharma
Equipment Labratory & Diagnostics
Medical & Surgical Equipment & Diagnostics
Capital Project Equipping Services
Health Technology & Medical Professional Services
eHealth
Health HR and Professional services
External Health Services
Surgical / Interventional Devices & Consumables (SIDC)
PPI Surgical Devices & Implants
Surgical Consumables
General Theatre Equipment

14. Key Customers Generating Sourcing & Contracts Projects
Building a Single National Sourcing Plan for Health
Key Customers Generating Sourcing & Contracts Projects
3 Year Plan
Health Sourcing Plan Pipeline
40/02
Capital Plan
Savings Initiatives
9 CHOs
Voluntary Agencies
Philanthropic Donations CAWT
HSE Corporate / Clinical Directorates
7 Hospital Groups
TUSLA / Other Government Departments
Logistics NDC

15. HSE Logistics Service

16. HSE Logistics & Inventory Management Service New model for Logistics & Inventory Management
NDC & Regional Hubs
Comprehensive Review resulted in the following recommendations:
Consolidation of fragmented stores infrastructure into a National Distribution Centre (NDC) distributing to 9 Hubs
Increase level of management of stock at point of use (POU)
Implementation of appropriate supply channels – 4000 Customer Delivery Points:

17. NDC Landscape
Regional Hubs are transhipment locations (no local stock) from which local deliveries will be made.
Product from the NDC will be transported to regional hubs on large vehicles in labelled cages. It will be cross-docked (consolidated), with product delivered from local suppliers and then delivered to customers in a single delivery using smaller vehicles.
Stock may be delivered to customer location by the NDC if it is more practical / effective in certain circumstances e.g. full loads for customer locations.
Implementation within the Dublin region is currently being further developed, in order to maximise the supply chain management strategy and to assist in the minimisation of stock holding arrangements in a number of locations.

18. NDC High Level requisition Flow Process

19. Stock Management - Point of Use
2 Bin Storage
system
Sample Label
Front Side
Sample Label
Reverse Side
POU Storage Unit
Back
Front
(ward staff use stock
from this bin first)
When the front bin is empty the user or L&IM operative turns the label which indicates replenishment is required and then begins to use stock from back bin
Stock put away into Kanban and barcode label turned to front
Stock picked and shipped
File uploaded and validated on Procurement system
Formatted file created for upload into Procurement system.
Depending on wireless availability. This may require return to docking station after scanning a number of locations.
On a scheduled basis a POU operative will scan the location for cards which have been turned to indicate replenishment required. Each card requiring replen will be scanned and returned to front.

20. Point of Use (POU) Benefits
Stock Management - Point of Use
Point of Use (POU) Benefits
There are many advantages to using the kanban system as a way to manage work, including:
Flexibility
Focus on continuous delivery
Reduction of wasted work / wasted time
Increased productivity
Increased efficiency
Team members’ ability to focus

21. Key Reasons for Implementing NDC
It is a health shared service which is a key element of: Government policy / public reform programme; HSE Reform Programme – Future Health; Logistics Review 2010
It is supported by a strong business case (€9m net saving p.a)
It delivers on LRC and Public Service Agreements (e.g HRA commits to maximising efficiency and greatly increasing productivity (p-11) and flexibility around grade demarcations (p-13))
It is supported by Minister for Health, Director General HSE, CFO HSE, National Director Shared Services and Head of Procurement
It releases clinical resources to frontline patient care
It resolves long standing deficits regarding ICT / Financial Management
It provides a platform for future development (systems and people)
It gives local suppliers / SME access to national distribution

22. A common language to identify, capture and share information globally
What is the GS1 Standard?
A common language to identify, capture and share information globally
Not for profit, global standards organisation
40 years experience in data standards
GS1* standards cover Identification**, Data Capture and Data Sharing (ie: master data management)
112 country offices, 1.3 million members, 25+ industry sectors
Members range from Retailers, Food Manufacturers, Hospitals and Government Agencies to Medical Device and Pharmaceutical Manufacturers
To learn more :
The most widely used supply chain standards in the world across healthcare and many other sectors
GS1 standards identify products, locations, assets and more, to drive Patient Safety and Supply chain efficiencies
Eg: The Product Code (GTIN) and other key product information are automatically identified when the barcode is scanned.
GS1 Code (GTIN) is on 98% of Pharmaceutical products and 70% of Medical Devices (see mcKinsey report ‘Strength in Unity’)
Recognised by over 65 Regulators around the world – being adopted by many government agencies around the world eg: NHS, Nehta (Australia), Canada Infoway, US GPO (Group purchasing organisations) as well as many Manufacturers
*GS1 - formerly EAN
**Barcode, 2D Datamatrix, RFID 22

23. HSE Drivers for GS1 Standards adoption
Internal
Patient Safety* (Traceability)
Increase Supply Chain Efficiencies
Patient Level Costing
External
Increase in Product Recall
Legislation (falsified medicines directive and medical devices regulation (UDI))
Policy Change ( Money Follows Patient)
Drive for cost savings
Local Healthcare User Group (HUG)
 Patient Safety achieved through
Accurate product identification
Greater traceability of product from the manufacturer to the patient
Patient 5 rights - Ensuring that the
right patient
Is given the right treatment
In the right dose
Through the right route
At the right time
(01) (10)A1C2E3
*See McKinsey report ‘Strength in Unity’ 23

24. HBS Procurement Communication to Suppliers
National Traceability Solution – GS1
Only National Traceability Solution (Instrument trays and endoscopes) in the world
90% of volume will be utilizing the solution by end of Phase 2 in 2015 (32 Hospitals)
Patient Safety was the key reason for implementation : Clinical imperative to have traceability for high risk procedures
HBS Procurement Communication to Suppliers
March 2015
Benefits: Huge paper savings and significant time savings eg: 1 Hospital/CDU had 5,000 transcriptions per day (scanning makes this a lot easier and more accurate), process to recall patients is faster, easier, more accurate and complete
What is the solution?
GS1 code on all Instrument trays and endoscopes
Scanned at each step of the decontamination process
Scanned and linked to the patient record
For hospitals that are using the solution, instrument sets can be shared while maintaining full traceability (major time saving as it is much easier to process a set that is GS1 coded and tracked using the MS1 system)

25. Business Intelligence
Procurement Systems
Business Intelligence

26. Procurement Systems Pricing & Assisted Sourcing System
The Pricing & Assisted Sourcing System (PASS) is a centralized searchable database designed to inform HSE staff who are authorised to buy goods and services of items on contract. PASS provides details and information relating to products, suppliers on contract as well as the price per item.
Procurement Programme Management System
The Procurement Programme Management System (PPMS) was developed to manage the procurement workload and pipeline.
Procurement Data Warehouse
The Procurement Data Warehouse (PDW) provides procurement with visibility across the supply-chain and the heterogenous systems within HSE.
National Distribution Centre
The National Distribution Centre (NDC) was developed to implement part of the Shared Services model to increase efficiency and productivity.

27. Visibility, Control & Efficiency
Procurement Systems
Visibility, Control & Efficiency
Extend use of ICT solutions
Maximise System to System Processing Integration
Maintain High Quality Master Data
Develop Self Service Requisition Capacity
Maximum use of Business Intelligence Analysis

28. Visibility, Control & Efficiency
Procurement Systems
Visibility, Control & Efficiency
Business Intelligence/
PDW/PPMS
Procurement Master Data
NDC/Finance Stabilisation
AIDC
Voice/Scanpoint
eReq.
EDI
eInvoicing
IFMS/Finance Reform
Self Service Requisitioning

29. Data Warehouse / Business Intelligence

30. If you want to go fast, go alone. If you want to go far, go together.

31. Thank You
Queries:

32. Contact Details Name Title Email Phone John Swords Head of Procurement
Brendan White
Head of Sourcing & Contracts
Brian Long
Head of Logistics & Inventory Management
Siobhan Dunphy
Office of the Head of Procurement Manager

33. Contact Details – Sourcing & Contracting
Name
Title
Phone
Martin Quinlivan
Medical Care Pharma (MCP)
Vincent O’Sullivan
Equipment, Laboratory & Diagnostics (ELD)
TBD
Surgical & Intravention Devices / Consumables (SIDC)
Michael Driscoll
Health Technology and Medical Professional Services (HTMPS)
Non-Health Categories (NHC)

34. Contact Details – Logistics & Inventory Management (L&IM)
Name
Title
Region
Phone
Francis Mollen
General Manager L&IM
Dublin Mid-Leinster & North East
Brendan Shovlin
HSE West
Stephen Lynch
HSE South
Edward Hogan
SAP Systems
Gerry McMahon
Business Systems