North West Procurement Survey2014

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Areas covered

• Background• Highlights• Headcount & department makeup• Spend & financial profile• Procurement partners & systems

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Background

• 2nd survey of the NW regional NHS procurement landscape

• Shows staffing levels, qualifications, spend and financial information, systems and how NW organisations interact with procurement partners

• Allows Trusts to understand their position in the landscape and helps Trusts build business cases for investment in their procurement functions

A full data will be available to Heads of Procurement at: www.nwprocurement.co.uk

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Highlights

• 26 / 34 responses received• 74% response rate

• 412 procurement staff

• £2.4bn of non-pay spend

• £1.1bn of influencable non-pay spend

• £39m 2014/15 savings target for procurement

• 33% of NW procurement staff MCIPS(Excludes stores, Mat Man, AP and Secretarial)

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Responses• 26/34 in 2014• 31/35 in 2013• 5 Trusts who submitted in

2013 haven’t done so for 2014

Note:Not all Trusts have procurement departments. In these cases their procurement function is often outsourced to another Trust in close proximity.

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TRUST 2013 20145 Boroughs Partnership NHS FTAintree Hospitals NHS Foundation TrustAlder Hey Childrens NHS Foundation TrustBlackpool Teaching Hospitals NHS FTBolton NHS Foundation TrustBridgewater Community Healthcare NHS TrustCentral Manchester University Hospitals NHS Foundation TrustCheshire & Wirral Partnership NHS Foundation TrustChristie NHS Foundation TrustCountess of Chester NHS Foundation Trust East Cheshire NHS TrustEast Lancashire Hospitals NHS TrustGreater Manchester West Mental Health NHS Foundation TrustLancashire Care NHS FTLancashire Teaching Hospitals NHS FTLiverpool Community Health NHS TrustLiverpool Heart and Chest NHS FTLiverpool Women's NHS Foundation TrustMersey Care NHS TrustMid Cheshire Hospitals NHS Foundation TrustNorth West Ambulance Service Pennine Acute Hospitals NHS TrustPennine Care NHS Foundation TrustRoyal Liverpool and Broadgreen University Hospitals NHS TrustSalford Royal Hospitals NHS Foundation TrustSouthport and Ormskirk Hospitals NHS TrustSt Helens and Knowsley Hospital NHS TrustStockport NHS Foundation Trust Tameside & Glossop Acute Services NHS Foundation TrustUniversity Hospital of South Manchester NHS Foundation TrustUniversity Hospitals of Morecambe Bay NHS FTWalton Neurology Centre NHS Foundation TrustWarrington and Halton Hospitals NHS Foundation TrustWirral Community NHS TrustWirral University Teaching Hospital NHS Foundation TrustWrightington, Wigan & Leigh NHS Foundation Trust

31 26

Headcount & department makeupDepartment size and budget• 412 total staff in post

– Average of 16 per department• For Trusts that submitted data in both years there is an

increase from 361 WTE in 2013 to 391 WTE 2014 – An increase of 8.3%

• 250 staff in front line procurement roles • 162 staff in stores, materials management, AP and secretarial• The largest team consists of 55 and smallest team of 5• Total departmental budgets range from £172k to £1,489k

– £488k mean average / 0.17% of Trust turnover– £30k mean average budget per WTE

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Headcount & department makeupRegional dispersion of staff

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Regional heat map of procurement staff based on reported headcount• Shows concentration of staff

in both Liverpool and Manchester

• Also shows the relative proximity of teams in the region to one another

• University Hospital Morecambe Bay is furthest North and Mid Cheshire furthest south

Headcount & department makeupAFC Banding

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Headcount & department makeupChange in establishment

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Headcount & department makeupDepartmental budget as a % of Trust turnover

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Headcount & department makeupQualification

• 83 staff are MCIPS in 2014– 33.20% of staff in front line procurement roles (excludes stores, materials management, accounts payable and secretarial)

• 77 staff were MCIPS in 2013 (in trusts which submitted in both years)

• 137 staff have some level of CIPS qualification (inc. MCIPS)

– 17 Associate Members (Level 5)– 12 Diploma Member (Level 4)– 16 Certificate Members (Level 2)– 9 Student Members

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Spend & financial profileRegional picture

• £2.4bn non-pay spend managed by procurement teams in NW

• £1.1bn of this reported as influencable by procurement departments

• 60% is the mean average non-pay expenditure covered by Purchase Order (lowest 23% and highest 96%)– 60% was the average coverage reported in 2012/13

survey

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Spend & financial profileSavings

• SAVINGS– £319m NW CIP target for 2014/15– 4.74% average CIP as percentage of Trust turnover– £29m savings achieved by procurement in 2013/14– 0.40% average savings achieved by procurement in

2013/14 as a percentage of turnover – £39m savings targeted by procurement for 2014/15

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Spend & financial profileSavings achieved as % of Trust turnover

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Spend & financial profileProcurement savings 13/14 vs target 14/15

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Spend & financial profilePurchase order coverage

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Procurement partners & systemsProcurement partner

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NORTH WEST PROCUREMENT SKILLS DEVELOPMENT (PSD) UPDATE

LEARNING & DEVELOPMENT

NHS STANDARDS OF ACCREDITATION PEER REVIEWS

LEARNING & DEVELOPMENT UPDATE:

Achilles EU Academy commenced November 2014

Training Needs Analysis due to be sent out shortly

Procurement Focus Working Group Away Day

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – CURRENTLY ACCREDITED (LEVEL 1)

Aintree University Hospitals NHS Foundation Trust Central Manchester University Hospitals NHS Foundation Trust Lancashire Teaching Hospitals NHS Foundation Trust North West Ambulance Service NHS Trust Salford Royal NHS Foundation Trust St Helens & Knowsley Hospitals NHS Trust

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – EXPRESSED AN INTEREST IN WORKING TOWARDS ACCREDITATION

5 Boroughs Partnership NHS Foundation Trust Blackpool Teaching Hospitals NHS Foundation Trust Bolton Hospital NHS Foundation Trust East Lancashire Hospitals NHS Trust Mersey Care NHS Trust Southport & Ormskirk Hospitals NHS Trust The Christie NHS Foundation Trust The Walton Centre NHS Foundation Trust Warrington & Halton Hospitals NHS Foundation Trust Wrightington Wigan and Leigh NHS Foundation Trust

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – WORKING TOWARDS LEVEL 2 ACCREDITATION

Aintree Hospitals NHS Foundation Trust

Central Manchester University Hospitals NHS Foundation Trust

North West Ambulance Service NHS Trust

Brian ManganNHS NW Procurement Development

&John Pooley

Senior Accountancy AssistantHealth Education North West

THE PROCUREMENT APPRENTICE

Background

Findings to date and next steps

View from an “apprentice”

Background

• Fellowship• HCSA and Supply Mgmt

articles – Sept/Nov• Promotes profession• CIPS, Colleges and PSD

engaged

http://www.cips.org/en-GB/membership/Fellowship/

ProcurementIN

Findings to date

Funding/indicative costs• 16-18 training paid in full – option to pay minimum

wage rates if high training element• Level 3 on - £1k contribution to training• Higher level apprenticeships through to degree – 50%

funding Next steps• In discussions with apprenticeships.gov etc re

Trailblazer project• Initial feedback positive – scoping Trust involvement

and potential providers• Timescales – May 15

John Pooley

My experience on an apprenticeship scheme

By John Pooley

Starting as an Apprentice

• Secured apprenticeship – before was studying joinery

• College – 2/3 of a degree within a year

• Work – 1 year – experience in different departments

• Life after – procure to pay – management accounts

Skills Gained from my Apprenticeship

• 1 Year’s experience – invaluable in current climate

• Qualification - chance without a degree – AAT

• Life balance between both work and college – used to working life

• Foot in the door for future employment

• Apprenticeships are more practical and job-related than other forms of learning

Employers gain from hiring an Apprentice.

• Allows employer to develop apprentice with skills and qualities that external market can not guarantee

• Help secure a supply of skilled young recruits – ageing workforce

• Apprenticeships are less expensive to recruit and train than experienced workers.

• Apprentices tend to stay with the organisation – also provide a high number future managers

• A good Apprenticeship scheme could be reflected in an enhanced reputation for the business both within the industry and in the local community

To register an interest please emailBrian.a.mangan@wwl.nhs.uk

Thank you - any questions?

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Sue Colbeck, Aintree Hospitals NHS Foundation Trust

Elizabeth McKenna, Salford Royal NHS Foundation Trust

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Principles of NHS Standards of ProcurementPeopleLeadershipPartnershipsProcess

Maturity LevelsLevel 1 – Building - awareness and building blocks in placeLevel 2 – Achieving - making good, strong progressLevel 3 – Excelling – outstanding procurement performance

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Planning process & gathering of information

Pre-assessment Day – what is expected, who should attend

Assessment Day – what is expected, format and who should attend

Assessment documentation and evidence

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Areas of best practice – websitehttp://www.nwprocurement.co.uk look on the Share tabLancashire Teaching – procurement procedure guidance documents on lineSt Helens and Knowsley – procurement based induction session

FSD Assessment levels and feedback Salford Level 3 Accredited ‘The organisation is well run, and highly regarded’

NHS STANDARDS OF PROCUREMENT NORTH WEST PEER REVIEW PROCESS – ORGANISATION & ASSESSOR FEEDBACK

Any questions?