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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
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