1. Simon Brewin Overview of the National Supply Chain Reform Task Force

2. Today’s Presentation…  National supply chain reform task force  What’s driving e-commerce reform  Why we need a national approach  Task Form Work Groups  Status of supply chain reform initiatives  Summary

3.  Health Online (NHIMAC) identified five key health information projects that depend on collaborative activity on a national basis.  Introducing e-commerce in hospital supply chains was identified as a key project.  NHIMAC established the National Supply Chain Reform Task Force in July 2000 to support joint planning by governments, hospitals, purchasing agencies and product suppliers. National Supply Chain Reform Task Force

4. About The Task Force Vision Vision Improved Patient Care in a changing Health Environment Improved Patient Care in a changing Health Environment Mission Mission World-class efficient and effective end-to-end supply chain World-class efficient and effective end-to-end supply chain

5. About the Task Force Objectives Objectives Identify key areas for joint work between health supply chain members Identify key areas for joint work between health supply chain members Develop activities to help members of the supply chain to redesign business processes Develop activities to help members of the supply chain to redesign business processes Develop activities to help members of the supply chain to adopt new technologies in a consistent fashion Develop activities to help members of the supply chain to adopt new technologies in a consistent fashion Provide forums for stakeholders across health to continue to collaborate and share information on supply chain developments Provide forums for stakeholders across health to continue to collaborate and share information on supply chain developments

6.  Opportunities to reduce costs and improve the quality and reliability of supply chains.  The importance of positioning Australian hospital purchasers and their suppliers to respond to global e-commerce trends for hospital purchasing. What is Driving e-Commerce Reform?

7.  Size and fragmentation of the Australian hospital supply chain.  Different business processes, technologies and management approaches already add costs.  Inconsistent implementation of e-commerce will further entrench fragmentation, reducing potential gains and deterring industry participation. Why Do We Need a National Approach?

8. Structure: Task Force Task Force Established July 2000 to collaborate on e-commerce. Vision. Purpose for each working group. Provide resources, general direction, remove roadblocks. Monitor progress, steer, and report to NHIMAC/AHMAC. Product Numbering EAN, HIBC Electronically Connecting Trading Partners How to improve towards an optimal supply chain. Understand end-to-end processes and critical success factors. Implementation priorities. Standards Develop and report standards within an overarching framework for priority areas. Standard Contract Terms and Conditions Develop standard hospital contract and request for tender documents. Performance Measurement Develop a performance management tool with KPIs that can be benchmarked across Australian hospitals. Supplier (Partner) Engagement Strategies for roll-out of Task Force programs to critical mass. Facilitation of adoption of working group guidelines. Event planning & coordination. Pilots. Roll-out. Messaging Datasets, other.

9. Electronically Connecting Trading Partners Working Group  Developed a Business Framework.  Describes the building blocks for achieving the vision of an OPTIMAL SUPPLY CHAIN in the Australian Health Sector.  Key factor is collaboration between trading partners to streamline shared processes and establish efficient, effective and accurate data exchanges.  It complements the more technical Standards Framework document.

10. Performance Measurement Working Group  Developed a Guideline for Hospitals.  Steps through a process for putting the stake in the ground in terms of “where we are today” - current performance.  Hospitals can measure performance before and after any change (eg. as a result of streamlining processes).  Determine/demonstrate benefits of e-commerce/change.  Includes national KPIs for benchmarking between similar hospitals (services, size etc).

11. Standardised Approach to Contract Terms and Conditions Working Group  Developed a standard contract for the supply of goods and services to hospitals.  Developed a standard request for tender document.  High level of cooperation was required to come to consensus between jurisdictions on terms and conditions.  Further work to be taken to move documents to the next level of maturity.

12. Supplier Engagement  Facilitates implementation of Task Force deliverables and recommendations - particularly compliance to any standards.  To influence e-commerce and supply chain reform directions in the Australian Health Sector.  Arranges and promotes Annual Health Supply Chain Summit. Summit 2002 (Nov, Sydney):  Next Health Supply Chain Summit in planning phase.  Over 100 participants  Representatives across the whole health sector  Supported recommendations

13.  Therapeutic Goods Association  Standards Australia  National Office for the Information Economy  Australian Procurement & Construction Council  SWEEP Project (Deakin University)  Medicines Coding Council of Australia  Commonwealth, State and Territory initiatives Coordination with Other National Initiatives

14.  High level of collaboration/ teamwork achieved within Task Force & 5 Working Groups  Broad agreement of National Directions in Supply Chain Reform  Final phase of 2002/03 Task Force deliverables endorsed by AHMAC.  Attend the Health Supply Chain Summit (~July/Aug2004). Continued participation to progress national initiatives and uptake for the transition to an optimal electronic supply chain in health. In Summary…

15. www.health.vic.gov.au/supplychain New Site (~Sept 2003) www.healthsupplychain.gov.au OR jane.dooley@dhs.vic.gov.au OR jane.dooley@dhs.vic.gov.au  613 9616 7008 Contacts

16. Thank You