Upload
vanminh
View
224
Download
2
Embed Size (px)
Citation preview
Owner:
NHS Shetland
Procurement Strategy
2016-2019
Version 5 18/10/2016
2 | Page NHS Shetland: Procurement Strategy 2016-2019
Table of Contents
1 Introduction / Executive summary .......................................................... 4
1.1 Foreword from NHS Shetland Chief Executive ..................................... 5
2 Procurement Vision / Mission Statement .................................................. 6
2.1 NHS Shetland Board Objectives ........................................................ 6
2.2 NHS Shetland Procurement Vision ..................................................... 6
2.3 NHS Shetland Procurement Mission ................................................... 6
3 Strategy Rationale / Context .................................................................. 7
3.1 Purpose ......................................................................................... 7
3.2 Strategy Drivers ............................................................................. 7
3.3 The Economic Challenge ................................................................ 12
4 Strategic aims, objectives & key priorities ............................................. 14
4.1 An enabler of corporate objectives .................................................. 14
4.2 NHS Shetland Procurement structure .............................................. 14
4.3 Procurement strategic objectives .................................................... 15
5 Spend ............................................................................................... 18
6 Mandatory Obligations ........................................................................ 19
6.1 Introduction ................................................................................. 19
7 Monitoring, reviewing and reporting on strategies ................................... 24
7.1 Monitoring our objectives ............................................................... 24
7.2 NHS Shetland Contract Register ...................................................... 24
7.3 Annual Report .............................................................................. 24
8 Delivering Procurement Excellence ....................................................... 26
8.1 Procurement Sub-Processes ........................................................... 26
8.2 Developing the Profession .............................................................. 27
8.3 Developing the Function ................................................................ 27
9 Strategy ownership & contact details .................................................... 30
10 Policies, tools & procedures ............................................................... 31
3 | Page NHS Shetland: Procurement Strategy 2016-2019
11 Appendices ..................................................................................... 32
11.1 Appendix A – NHS Shetland Procurement Steering Group Terms of
Reference ............................................................................................. 32
11.2 Appendix B – NHS Shetland Procurement User Group Terms of
Reference ............................................................................................. 33
11.3 Appendix C – PCIP ‘Lite’ Assessment ............................................ 35
11.4 Appendix D – PESTLEE Analysis ................................................... 41
11.5 Appendix E NHS Shetland Procurement Balanced Scorecard ............ 42
12 Glossary ......................................................................................... 44
13 Bibliography .................................................................................... 44
DOCUMENT CONTROL SHEET: ................................................................... 54
4 | Page NHS Shetland: Procurement Strategy 2016-2019
1 Introduction / Executive summary
The proper management of Procurement is an important factor contributing
towards the efficient operation of NHS Shetland and the attainment of corporate
objectives. In order to support steps already underway to deliver better
healthcare, it is vital to staff and patients that products and services are
delivered at the highest quality and optimum value, within systems tested as fit
for purpose at point of delivery, whilst managing risk and due diligence.
This Procurement Strategy positions the Procurement function visibly within the
organisation; establishing Board level commitment to and involvement in the
management of the Board’s procurement deliverables. It additionally sets out
clear, measurable objectives and priorities for improvement which will be closely
monitored. Progress against strategic objectives will be reported to the NHS
Shetland Board through the Executive Management Team.
This strategy sets out clearly the Procurement Service’s commitments over the
next three years and is also written to be fully compliant with the following
Procurement regulations governing Public Procurement in Scotland:
The Procurement Reform (Scotland) Act 2014
The Public Contracts (Scotland) Regulations 2015 and;
The Procurement Scotland Regulations 2016.
The strategy will be supported in line with management accountability structures
and savings targets will in turn be reflected within the savings plans of
Departments.
The strategy will additionally shape the Board’s procurement procedures which
set out the detailed operational controls governing procurement activity in a
manner which meets the requirements of the Board’s Standing Financial
Instructions and Financial Operating Procedures.
The emerging picture of Health and Social Care Integration across NHS Shetland will be kept under review and the Strategy will be updated accordingly. In any
case NHS Shetland will review its procurement strategy
5 | Page NHS Shetland: Procurement Strategy 2016-2019
annually and make such revisions as it considers necessary.
This strategy spans the period from the remainder of financial year 2016-17
from 1st January 2017 to March 31st 2017 and the subsequent three financial
years across 2017-18 to 2019-20.
1.1 Foreword from NHS Shetland Chief Executive
NHS Shetland’s overall vision is to deliver sustainable high quality, local health &
care services, that are suited to the needs of our population.
In a modern Health service this is delivered by a well qualified staff, who have
the appropriate support, equipment and tools to carry out their roles. All of this
support will at some point be impacted by procurement, whether this is for the
purchase of physical products, obtaining additional services such as education &
training or perhaps the sourcing of other technical input, for example engineers
or external service experts.
Good procurement should therefore be seen as key to the effective and efficient
delivery of our services.
This strategy sets out our Procurement objectives for 2016-2019; it explains
how we will address the responsibilities placed upon us as a Scottish Public
Sector body by the latest Procurement regulations and how we will balance the
need to obtain value for money, while also ensuring appropriate choice and
provision of the best possible equipment for our staff. This should also be done
in a way which is both environmentally and ethically responsible.
Finally it is essential that we all recognise that responsibility for the delivery of
the objectives & goals within this strategy rests with our entire workforce and
not only the Procurement team. Only through effective collaboration and
collective responsibility will we demonstrate the value that excellent
Procurement can deliver for NHS Shetland.
<Signature> Ralph Roberts
Chief Executive
6 | Page NHS Shetland: Procurement Strategy 2016-2019
2 Procurement Vision / Mission Statement
2.1 NHS Shetland Board Objectives
NHS Shetland Procurement’s vision / mission and subsequent objectives operate
in harmony with the Health Board objectives (Shetland, 2015) as follows;
Figure 1 NHS Shetland Board Objectives
2.2 NHS Shetland Procurement Vision
To be recognised as having leading commercial, procurement and commissioning
practices and skills delivering outstanding outcomes. To have the people of our
region and service users at the heart of what we do.
2.3 NHS Shetland Procurement Mission
We deliver our service in partnership with colleagues, patients and suppliers to
ensure we achieve the optimum solution which balances available resources with
the highest quality outcomes.
I. To continue to improve and protect the health of the people
of Shetland
II. To provide quality, effective and safe services, delivered in
the most appropriate setting for the patient
III. To redesign services where appropriate, in partnership, to
ensure a modern sustainable local health service
IV. To provide best value for resources and deliver financial
balance
V. To ensure sufficient organizational capacity, capability and
resilience
7 | Page NHS Shetland: Procurement Strategy 2016-2019
3 Strategy Rationale / Context
3.1 Purpose
The purpose of this strategy is to lay out a clear framework for the activities of
the NHS Shetland Procurement function over the three year period of 2016-
2019. This will provide the reader with a detailed understanding of what the
priorities of the function are, the reasons these priorities have been chosen
along with an action plan to deliver against these priorities.
3.2 Strategy Drivers
It is an accepted principle within the Scottish Public Sector that all of an
organisation’s non-pay expenditure should be subject to professional
procurement influence. John F. McClelland’s “Review of Public Procurement in
Scotland“ (Mclelland, 2006), commonly referred to as the McClelland Report,
outlined the path to “Best Value” in Public Sector Procurement and contained
attributes and performance assessment metrics for organisations to aspire to
and map their way to superior performance. NHS Scotland has used the
McClelland Report as a basis for its Reform Programme and to develop its reform
agenda aligned with Scottish Government and its Public Procurement Reform
Programme. In support of this aim newly created Procurement Centre’s of
Expertise (CoE’s) were created. The NHS Scotland CoE being NHS National
Procurement hosted within NHS National Services Scotland.
3.2.1 Policy
NHS Shetland work within the Scottish model of Procurement, defined by
Scottish Government as follows;
“The Scottish Model of Procurement puts procurement at the heart of Scotland’s
economic recovery. It sees procurement as an integral part of policy
development and service delivery.
Like all good ideas, it’s a simple concept - business friendly and socially
responsible. Looking at outcomes not outputs, it uses the power of public spend
to deliver genuine public value beyond simply cost and /or quality in purchasing.
8 | Page NHS Shetland: Procurement Strategy 2016-2019
Government led, it benefits from strong political leadership including three
successive Cabinet Secretaries. It is also owned by all of the Scottish public
sector. Working together to develop strategic relationships with key business,
Third Sector organisations and, a project level partnership with them to agree
solutions to specific problems.
The Value for Money triangle sums up the Scottish Model of Procurement; it is
not just about cost and quality, but about the best balance of cost, quality and
sustainability.”
Figure 2 The Scottish Model of Procurement
How Procurement is structured
The figure below shows the inter-relationship between the different public
procurement organisations and their respective responsibilities.
9 | Page NHS Shetland: Procurement Strategy 2016-2019
Figure 3 Scottish Procurement Structure
2016 has been a major year for Public Procurement Policy in Scotland. in
addition to the enactment of an updated version of the European Union Public
Procurement Regulations (SSI, The Public Contracts (Scotland) Regulations
2015, 2015) the Scottish Government has put into force two pieces of
legislation, “to focus Government and public services on creating a more
successful country, with opportunities for all of Scotland to flourish, through
increasing sustainable economic growth” (SSI, Procurement Reform (Scotland)
Act 2014, 2014), (SSI, The Procurement Scotland Regulations 2016, 2016). This
legislation compels almost all public bodies in Scotland to ensure there is
complete transparency of their non-pay expenditure in order to support and
encourage SME and 3rd sector opportunity and growth.
3.2.2 Health Policy
Within the Health context the NHS Scotland approach has been developed
further and is now controlled within the NHS Scotland Procurement Steering
Group. The CEL 05 (2012) (Directorate for Health Finance and Information,
2012) sets out the key principles of this engagement to be adopted by all Health
Boards and Special Boards in Scotland with regards to Procurement activity.
10 | Page NHS Shetland: Procurement Strategy 2016-2019
In Particular:-
National & Sectoral, Regional and Local Contracts will be used as part of the
strategy
Where a contract exists then it must be used within the Health Board or
exceptions noted and justified.
Procurement, Clinical and Technical leads will work with NHS National
Procurement, Regional Procurement and Local Procurement to support these
contracts and ensure best value decisions are made for the board on their use.
Commodity Advisory Panels (CAPs) and Technical Users Groups (TUGs) will
continue to function and progress reported through Procurement Steering Group.
Wide coverage on all the various National, Regional and Local contracts will be
maintained through the engagement of the TUGs and CAPs.
3.2.3 The 2020 Vision
In 2011, the Scottish Government set out its strategic vision for achieving
sustainable quality in the delivery of healthcare services across Scotland, in the
face of the significant challenges of Scotland’s public health record, our changing
demography and the economic environment.
The 2020 Vision provides the strategic narrative and context for taking forward
the implementation of the Quality Strategy, and the required actions to improve
efficiency and achieve financial sustainability.
The Scottish Government's 2020 Vision is that by 2020 everyone is able to live
longer healthier lives at home, or in a homely setting and, that we will have a
healthcare system where:
We have integrated health and social care
There is a focus on prevention, anticipation and supported self-management
Hospital treatment is required, and cannot be provided in a community setting,
day case treatment will be the norm
Whatever the setting, care will be provided to the highest standards of quality
and safety, with the person at the centre of all decisions
11 | Page NHS Shetland: Procurement Strategy 2016-2019
There will be a focus on ensuring that people get back into their home or
community environment as soon as appropriate, with minimal risk of re-
admission
The Shetland Islands are not immune to the challenge; by 2037 Shetland’s
population is expected to increase by 8.3% from 2012. The 75+ age group is
expected to increase most. (Scotland N. R., 2015)
3.2.4 NHS Shetland Positioning
A SWOT (Strengths, Weaknesses, Opportunities and Threats) was carried out by
the service improvement forum to understand how the Board is positioned to
face up to future challenges. This has been further developed by the
Procurement team; the following outputs from this exercise will directly influence
the success of delivery of the Procurement Strategy.
Strengths
- Formal Procurement governance structure in place - Recognition of issues and willingness to improve - Ability to utilise NHS Scotland national contracts - Small Board and ownership of staff in setting the direction. - Easy to find the right person in the Board. - Including a patient in service improvement and quality.
Weaknesses
- Low level of local procurement knowledge - Difficulty in attracting and retaining Procurement knowledge and skills - Dependence on logistics carriers (Sea/Air) for medical supplies /
equipment - Poor utilisation of eProcurement system and limited meaningful data - Low level of Procurement engagement from local stakeholders
Opportunities
- Exploit existing knowledge from colleagues across different Health Boards
- Partner with local authority and utilise Health Board consortia structure - Develop a talent pool of staff - Develop local suppliers, prioritise economic growth - Work with Health Board / IJB to commission innovative approaches to
Health and social care services
Threats
- Budgetary pressures - Health Board re-structuring - ‘Unknown impacts’ arising from Health & Social Care integration
Table 1 SWOT Analysis Outcomes
12 | Page NHS Shetland: Procurement Strategy 2016-2019
3.3 The Economic Challenge
The following chart taken from the latest Audit Scotland NHS Scotland report
(Scotland A. G., 2015) demonstrates in stark detail the challenge facing public
healthcare services;
Figure 4 Pressures on Health Budgets
The Audit Scotland report makes the following recommendation;
“The Scottish Government needs to increase the pace of change if it is to
achieve its 2020 vision. In doing so, it is important that the Scottish Government
and NHS boards ensure changes are underpinned by good long-term financial
and workforce planning. They also need to consider the implications for
performance targets and standards and the NHS estate, as well as ongoing
initiatives and reform programmes. By doing so, the Scottish Government and
boards will gain a better understanding of the nature, scale and impact of
changes required.”
NHS Shetland shares this very difficult challenge of balancing demand with
resource as detailed within the Local Delivery Plan (Shetland, 2015), NHS
13 | Page NHS Shetland: Procurement Strategy 2016-2019
Shetland is required to deliver Efficiency savings in 2016-17 of £1.768 Million of
which £151K are directly attributable to Procurement.
3.3.1 Procurement Capability
A focus of NHS Scotland’s drive to attain “Best Value” is the use of a
Procurement & Commercial Improvement Programme (PCIP) (Government T. S.,
2016). This was formerly known as the Procurement Capability Assessment
(PCA) and is conducted annually assessing performance in terms of the
attributes outlined in the McClelland report.
During 2014/15 the new PCIP arrangements were being formulated and
therefore no assessments were carried out in Health during this period. In early
2016 a PCIP assessment was performed on NHS Shetland which yielded a score
of 35% aligning within the ‘Blue’ performance band; which places the Health
Board in the lower 50% of NHS Scotland Procurement performance. However
more pressing is the need to develop the performance of the Development and
Tender and Contract areas are these have been measured as non-conformant at
the assessment.
NHS Shetland’s positioning in this assessment provides a baseline and platform
to drive and develop the function through our partnership with NSS National
Procurement and will receive considerable focus over this strategy period.
3.3.2 Hosted Procurement with National Services Scotland
NHS Shetland has recognised the skills gap required to sustain Procurement
improvement and has moved to close this gap by utilising the skills from NHS
National Procurement to directly manage its Procurement function. It is hoped
that sharing this knowledge resource will lead to better local outcomes for all
stakeholders. This service will focus on strategic Procurement, encompassing
contracting and tendering, governance, benefits tracking and compliance with all
Procurement Regulations. Guidance and mentoring for local Procurement
administration staff to support them should they wish to develop their
Procurement career will also form part of the partnership.
14 | Page NHS Shetland: Procurement Strategy 2016-2019
4 Strategic aims, objectives & key priorities
4.1 An enabler of corporate objectives
Procurement, when done well can have a huge impact on the success of an
organisation, any organisation.
Organisations gain competitive advantage through the use of resources at their
disposal (Barney, 1991) (Barney, 1995). It is now widely recognised that by
establishing appropriate external relationships, organisations can tap into
resources beyond their four walls and even find synergies and create new
complementary resources (Dyer and Singh, 1998) (Lavie, 2006).
4.2 NHS Shetland Procurement structure
The overall governance and strategic leadership within the Board is controlled
and directed by the Procurement Steering Group (PSG). Reflecting the strategic
nature of this group the membership is as follows;
Procurement Steering Group Membership
Board Chairman (Chair)
Director of Finance
Director of Pharmacy
Director of Nursing & Acute Services
Director of Community Health & Social Care
Director of Human Resources & Support Services
Head of Estates
Clinical Director of Dental Services
Note: the PSG Terms of Reference is presented in Appendix A – NHS Shetland
Procurement Steering Group Terms of Reference.
Operationally the function will report and drive delivery and performance
through the Procurement User Group (PUG) which meets every 2nd month;
Procurement User Group Membership
Head of Finance & Procurement (Chair)
15 | Page NHS Shetland: Procurement Strategy 2016-2019
Estates Project Manager
NSS hosted Procurement lead
Facilities Manager
Primary Care Service Manager
Dental Business Manager
Chief Medical Physics Officer
Assistant Director of Nursing (Hospitals)
Head of IM & T
(Or nominated deputies)
Note: the PUG Terms of Reference is presented in Appendix B – NHS
Shetland Procurement User Group Terms of Reference.
The NSS Hosted Procurement approach will be to work closely with the above
groups to agree, develop and drive Procurement performance within NHS
Shetland.
4.3 Procurement strategic objectives
In support of NHS Shetland’s corporate strategy the following strategic
objectives have been agreed; (please note year 2 & 3 may be refined at annual
review).
Board
Objective
Objective Name Year 1
Target
Year 2
Target
Year 3
Target
1 Recurring Procurement
Savings
£140K £140K £140K
Objective summary: as detailed in the local delivery plan, NHS Shetland is
required to make £1.768M efficiency savings in 2016 alone, with £151K directly
attributable to Procurement. Procurement savings will be primarily delivered
through the following means:
Playing our role in national contracting efforts and delivering identified
savings from these
Developing a local contract workplan to ensure best value is gained
through local arrangements
Through supplier and contract management, identify potential efficiencies
Work with local stakeholder to manage demand effectively
16 | Page NHS Shetland: Procurement Strategy 2016-2019
2 PCIP Score 45% 65% 80%
Objective summary: The PCIP is the means by which Procurement function’s
within individual public bodies can measure their effectiveness and capabilities in
a standardised way. Based on best practice, if we improve our score to the levels
above we can assure our stakeholders that the proper governance and
procedures are in place to manage public funds and deliver better value
outcomes. The Procurement team will on a bi-monthly basis score itself against
the measurement tool to gauge progress to plan with an associated report to the
Procurement Steering group twice per year. The actual PCIP is due to be
undertaken again in early 2018 which will provide full validation of progress.
3 Trade supplier spend
on managed contracts
40% 60% 90%
Objective summary: How do we ensure that our suppliers are delivering
effectively against our requirements and thus providing quality, effective and
safe services? The process begins by ensuring that there is a fully documented
and rational statement of requirements alongside appropriate metrics which can
be measured by the commissioner or procurer of the service. Managed contracts
may be managed by National bodies such as Scottish Government Procurement
and Commercial team or NHS National Procurement or from a local perspective
by the Budget holder with support from local Procurement or directly by local
Procurement; the important measure being that the contract has been suitably
sourced, following local Procurement procedures / SFI’s and the Procurement
Journey.
4
Major Suppliers on
supplier management
Programme
1 3 5
Objective summary: Redesign effort to deliver a modern, sustainable health
service should include strategic suppliers. These suppliers should be viewed as
partners in the success of NHS Shetland and as sources of competitive
advantage and innovation. It is vital then that emphasis and dialogue should be
directed toward our top suppliers. To this end the above commitments have
been made to engage in formal / regular dialogue with these suppliers.
5 Spend with associated
PO
50% 70% 90%
17 | Page NHS Shetland: Procurement Strategy 2016-2019
Objective summary: A purchase order [PO] is a document issued by a buyer to
their supplier that defines what is needed, in what quantity, when performance
is required, and on what terms, including price and payment terms. A PO also
provides assurance and evidence that organisational procedures have been
adhered to. In addition to this requirement with NHS Shetland SFI’s, all Chief
Executives within NHS Scotland have committed to a, “no PO no pay policy.”
(Health Directorate, 2012). NHS Shetland Procurement will communicate this
objective widely with budget holders, and measure conformance on a monthly
basis with reporting to PUG / PSG on a bi-monthly / 6 monthly basis
respectively.
6 Spend through
Catalogues
50% 65% 85%
Objective summary: The ability to select and order product from catalogues
brings with it benefits through order efficiency, speed and accuracy not just for
NHS Shetland but the wider supply chain. Catalogues will be updated regularly
and training provided to users in year 1 of this strategy. Performance will be
measured on a monthly basis with reporting to PUG / PSG on a bi-monthly / 6
monthly basis respectively.
7
To consistently achieve
high customer
satisfaction scores
30% (Net
Promoter
Score)
35%
(Net
Promoter
Score)
40%
(Net
Promoter
Score)
Objective summary: In supporting the Health Board to support the people of
Shetland; Procurement must be an effective partner. In order to measure this
effectiveness, customer feedback mechanisms must be implemented and acted
upon. To this end the Net Promoter Score© approach will be implemented
(Satmetrix Systems, 2016).
18 | Page NHS Shetland: Procurement Strategy 2016-2019
5 Spend
NHS Shetland spends approximately £10 million pounds per year on external
goods and services in order to deliver its objectives. Achieving best value against
this spend is the primary focus of NHS Shetland procurement.
The following chart provides a high level overview of where NHS Shetland
spends its money each year;
Figure 5 NHS Shetland Spend by Product / Service
19 | Page NHS Shetland: Procurement Strategy 2016-2019
6 Mandatory Obligations
6.1 Introduction
This section documents NHS Shetland Procurement‘s approach to meeting the
mandatory requirements of the Procurement Reform Act.
6.1.1 Regulated Procurements
All Regulated Procurements; that is Procurement exercises of £50K and above in
value will be advertised on the Public Contracts Scotland website
http://www.publiccontractsscotland.gov.uk/ NHS Shetland is committed to
ensuring all suitable opportunities are advertised to support businesses across
Scotland in gaining access to our product and service requirements. As NHS
Shetland will be advertising on and subsequently awarding on the PCS website
the functionality of the site will automatically publish and maintain our contract
register for public viewing.
6.1.2 Achieving our purpose
Our stated vision is, “To be recognised as having leading commercial,
procurement & commissioning practices and skills delivering
outstanding outcomes. To have the people of our region and service
users at the heart of what we do” and our mission is that, “We deliver our
service in partnership with colleagues, patients and suppliers to ensure
we achieve the optimum solution which balances available resources
with the highest quality outcomes.”
Procurement cannot operate in a vacuum and must engage closely with
colleagues who are subject matter experts in order to deliver value. To this end
for regulated procurements we will utilise the Procurement Journey Route 3
(Government, 2016) which documents in detail how a strategic procurement
exercise should be undertaken within the Public Sector in Scotland. Each
exercise, when managed by a capable Procurement professional working in
partnership with key stakeholders including service users, colleagues and other
subject matter experts will result in an appropriately drafted ‘outcome’
specification supporting innovative submissions from suitable suppliers from
micro-size and 3rd Sector suppliers through to multi-national businesses. The
20 | Page NHS Shetland: Procurement Strategy 2016-2019
Procurement Journey is developed to facilitate the public Procurement
regulations and by following this journey provides assurance of equal and fair
treatment of all suppliers bidding for work in our regulated procurements from
initial requirements gathering through award and subsequent contract delivery
and completion.
6.1.3 Delivery of value for money
Value for money is defined in the online business dictionary (WebFinance, 2016)
as,
” A utility derived from every purchase or every sum of money spent. Value for
money is based not only on the minimum purchase price (economy) but also on
the maximum efficiency and effectiveness of the purchase.”
The most effective way of ensuring value for money is to openly and
transparently invite bids for the suitably specified requirement from the supply
market. The requirement will be specified as far as possible based on the
required outcome to support and enable a wide range of potential solutions and
suppliers. This allows each potential supplier, with their own unique capabilities
and strengths to accurately estimate their approach to fulfilling the requirement.
NHS Shetland’s Procurement approach will be to harness as wide a supply base
as possible for its requirements through advertising of opportunities and, for
lower spend inviting three quotes from suitably qualified suppliers. The three
quote process will utilise Routes 1 & 2 of the Procurement Journey and will be
performed using the Public Contracts Scotland Quick Quote procedure. Of course
value for money can also be defined as delivering additional economic benefits
for the local community.
6.1.4 Sustainable Procurement
As Procurement professionals in the Scottish Public Sector we align ourselves
with the Scottish Governments Procurement Journey and the requirements of
the Procurement Reform (Scotland) Act 2014 which requires that an
Organisation must think about how they can improve the Social, Environmental
and Economic wellbeing of the area in which they operate, with a particular
focus on reducing inequality. Regulated Procurements under National, Regional
21 | Page NHS Shetland: Procurement Strategy 2016-2019
and Local commodity strategies are carried out in compliance with our
sustainable procurement duty, having access to tools such as;
Scottish Public Procurement Prioritisation Tool;
The Sustainability test;
Life Cycle Impact Mapping; and
the Scottish Flexible Framework
6.1.5 Engaging with our patients
In order to open dialogue with our patient population we have utilised the NHS
Shetland Public Partnership Forum (PPF) which meets quarterly. Public
Partnership Forums are networks of local people with an interest in improving
NHS services in Scotland. The NHS Shetland PPF involves a range of people,
including members of local community groups and voluntary organisations, and
other interested individuals. This engagement has involved the Procurement
team presenting to the local population information about who we are, what we
do, what benefits we bring to NHS Scotland in general and NHS Shetland in
particular; from this introduction we have elicited views and comments from the
forum attendees on what is important to them in order to again focus
Procurement on patient priorities. We will commit to attendance at this forum on
an annual basis.
6.1.6 Engaging with Suppliers
In relation to this Procurement strategy we have contacted a number of
suppliers to NHS Shetland ranging from micro-businesses up to multi nationals
asking a series of qualitative questions in order to inform priorities and direction
of travel for the Procurement function. We decided to choose specific businesses
across a range of product and service categories in order to get as wide an input
of views as possible without being too resource intensive.
A telephone survey was undertaken as previous experiences with holding a
supplier open day resulted in a very low attendance. By opening dialogue in this
way with suppliers it is felt that this may result in the possible reinstatement of
an annual open supplier day.
22 | Page NHS Shetland: Procurement Strategy 2016-2019
Unfortunately we received only 3 responses from this engagement with no
perceptible trends emerging. This was despite a number of reminders that the
survey was available. We will continue to look at different ways to engage with
suppliers over time to allow them the opportunity to influence our approach.
6.1.7 Community benefits
As part of our commitment to incorporating community benefits in order to
improve the economic, environmental and social wellbeing of the Shetland
Islands (Government T. S., 2016) we will commit to incorporating the following
recommended tools;
Scottish Public Procurement Prioritisation Tool;
The Sustainability test;
Life Cycle Impact Mapping; and
the Scottish Flexible Framework
6.1.8 Our approach to food procurement
NHS Shetland will work closely with NHS National Procurement to ensure the
highest level of standards are maintained in both the obtaining of food supplies
and the onsite preparation of food to ensure the wellbeing of our patients and
staff; utilising the skills, knowledge and experience of NHS National Procurement
will provide assurance that the highest standards of animal welfare is maintained
at all times and that we are aware and are operating to the latest legislative
requirements. Policy details are again to be located in section 10.
6.1.9 Our position with regard to the living wage
NHS Shetland supports the right of employees to earn a fair wage which affords
them a decent standard of living. NHS Shetland Procurement whilst not able to
enforce living wage demands on its suppliers nevertheless will work with
suppliers through relationship management to look for opportunities for its
suppliers to implement the living wage within their staff structures.
6.1.10 Compliance by contractors and sub-contractors with the Health
and Safety at Work etc. Act 1974
Shetland NHS Board exists to provide safe, high quality, sustainable healthcare
and health improvement services to the people of Shetland. The Board
recognises that it cannot provide these services unless it ensures, as far as
possible, freedom from risk to the health, safety and welfare of staff, and others
23 | Page NHS Shetland: Procurement Strategy 2016-2019
affected by the work undertaken and/or the nature of the business.
Improvement and protection of health is a primary objective of the Board and it
is prioritised equally alongside other business and operating objectives. (Oxley,
2014). All contractors are expected to adhere to NHS Shetland facilities
management procedures (Policies, tools & procedures) and policies when
working on site.
6.1.11 Embedding Ethical Procurement
NHS Shetland will consider the relevant and proportionate application of fair
and ethical trading principles in its regulated procurement activity to promote
fairness, dignity and the rights of workers and producers in local and
international trading.
It will implement this by including in each public contract or framework
agreement, either by the ESPD or relevant selection criteria, conditions relating
to the performance of the contract to ensure that the economic operator
complies with environmental, social and employment law as required by Section
19(4) of The Public Contract (Scotland) Regulation 2015. The ESPD and selection
criteria will include questions designed to establish any breaches of
environmental, social and employment law on the part of the supplier, details of
any breach which has occurred and any subsequent measures the bidder has
taken to “Self-Cleanse” and demonstrate reliability in this area
As many of the goods and services that are used in Shetland are call offs from
contracts and Frameworks procured by the National Procurement Centre for
Expertise, these measures have been adopted into their contracting process
already.
6.1.12 Supplier payments
NHS Shetland is committed to ensuring its suppliers receive payment within 30
days of delivery of agreed goods or services and to this end monitors
effectiveness of payments as part of our balanced scorecard.
24 | Page NHS Shetland: Procurement Strategy 2016-2019
7 Monitoring, reviewing and reporting on
strategies
7.1 Monitoring our objectives
The bulk of the stated objectives will be measured and shared with senior
management on a monthly basis using a Balanced Scorecard (Kaplan & Norton,
1996) measurement approach. The Balanced Scorecard not only measures
financial benefits but also process, staff and customer facing benefits also. This
will ensure we achieve a fair balance of priorities to deliver a best value
Procurement function. We will also track objectives through the Procurement
User Group and Procurement Steering Group meetings. The Balanced Scorecard
summary is presented in Appendix E.
7.2 NHS Shetland Contract Register
NHS Shetland is fully committed to transparency in its spend with suppliers and
supports the requirement of the Procurement reform Act (SSI, 2014)to publish a
public facing contracts register. To this end NHS Shetland will utilise the
functionality available on the Public Contracts Scotland website (NHS Shetland
Public Contracts Register, 2016). All NHS Shetland public contracts of value
above £50,000 shall appear on this register.
7.2.1 Approach to Framework Call Offs
Any call off from a Framework Agreement with a single supplier that exceeds or
is it expected to exceed (in the case of multiple call offs) the threshold value of
£50,000 over the lifetime of the Framework will (as soon as practicable) have an
associated contract award notice placed on Public Contracts Scotland
(Government T. S., 2016) advertising this fact. By virtue of the award placement
an associated entry with the public contract register will be made.
7.3 Annual Report
The first NHS Shetland Procurement annual report will be published as soon as
reasonably practicable in the 2018-19 financial year in line with statutory
guidance (Government T. S., 2016) as follows;
25 | Page NHS Shetland: Procurement Strategy 2016-2019
“If the financial year starts later, for example on 1 May 2017, the first report will
cover 31 December 2016 to 30 April 2017 and 1 May 2017 to 30 April 2018. In
that case, the report would need to be produced as soon as reasonably
practicable after 30 April 2018.”
The NHS Shetland Procurement annual report will be approved by the NHS
Shetland Procurement Steering Group in April of each year and then will be
presented to the NHS Shetland Board for final approval before publishing on the
NHS Shetland website. The annual report will contain the following information
as a minimum;
(a) A summary of the regulated Procurements that have been completed during
the year covered by the report.
(b) A review of whether those procurements complied with the NHS Shetland
Procurement strategy.
(c) To the extent that any regulated procurements did not comply, a statement
of how NHS Shetland intends to ensure that future regulated Procurements do
comply.
(d) A summary of any community benefit requirements imposed as part of a
regulated Procurement that were fulfilled during the financial year covered by
the report.
(e) A summary of any steps taken to facilitate the involvement of supported
businesses in regulated Procurements during the year covered by the report.
(f) A summary of the regulated Procurements the authority expects to
commence in the next two financial years.
26 | Page NHS Shetland: Procurement Strategy 2016-2019
8 Delivering Procurement Excellence
8.1 Procurement Sub-Processes
To ensure Procurement excels in its purpose it is important that the three main
sub processes of procurement are identified, understood and acted upon (Mena,
van Hoek, & Christopher, 2014). The three sub-processes are presented in
Figure 6 below;
Figure 6 The three main sub-processes of Procurement
Strategic Sourcing - This will be led by NSS through the Hosted Procurement
Service. This strategy sets out the alignment with Health Board strategic
objectives. A detailed work plan showing sourcing procedures which incorporate
The Scottish Model of Procurement has been and approved by the NHS Shetland
PUG.
Managing Supplier Relations – This element again will be led by NSS through
the Hosted Procurement Service. The approach will be in keeping with The
Scottish Model of Procurement and utilising the Balanced Scorecard approach
27 | Page NHS Shetland: Procurement Strategy 2016-2019
detailed in the Procurement Journey (Government S. , 2016). Procurement will
identify strategic suppliers to work with and develop joint sources of value for
NHS Shetland.
Ordering Cycle – Working to previously accepted principles (Health Directorate,
2012) we will drive the adoption of Purchase Orders utilising the Public Sector E-
Purchasing system (PECOS) and measure this on a monthly basis. If however
performance is not moving at the speed we require we will reserve the right to
implement a, ‘no PO no pay policy’, we will also measure and report NHS
Shetland’s payment performance to its suppliers to ensure we meet our 30 day
payment target. We will look to drive efficiency by putting in place catalogues to
reduce text based ordering and thereby supporting good spend Management
Information; again this will be a measurable target.
8.2 Developing the Profession
Like most professions it is incumbent upon its leaders and practitioners to
constantly strive to optimise the function. Integral to this is a process of
Continuous Professional Development (CPD) this includes engaging with fellow
professionals, attending conferences and courses, being part of the Professional
body; i.e. Chartered Institute of Procurement and Supply (CIPS) (Supply C. I.,
2016) and to read widely on the subject. All of these activities form part of the
continuing development of NHS Shetland Procurement staff which are agreed
within line management structures and recorded in the NHS Scotland Knowledge
and Skills Framework system(e-KSF) (Scotland N. , 2016).
8.3 Developing the Function
Allied with the above there exists for the Procurement function a clear and well
articulated, ‘maturity model’ (Mena, van Hoek, & Christopher, 2014), NHS
Shetland Procurement will utilise this model and the PCIP as part of the
development journey for both the function and Procurement staff toward
Procurement Excellence. Table 2 presents the Procurement Maturity Model with
the shaded part highlighting were we believe the function to be currently.
28 | Page NHS Shetland: Procurement Strategy 2016-2019
Transactional Cost driven Integrated Leading
Alignment/
involvement
in strategy
No strategic
orientation or involvement
Independent
from organization’s strategy
Supports
organizational strategy
Close alignment
Influences
organizational strategy
Provides strong input to values and strategies
Scope of
activities
Clerical in nature
One-off negotiations with suppliers
Order processing
Hardly any tendering
Commercial activities
Tendering Negotiation Getting the deal!
Active in make-buy decisions
Outsourcing Global sourcing Focus on strategic
sourcing Relationship
management and supplier
development
End-to-end supply chain management
Few areas of external spend untouched
Relationship
management and supplier
development
Relationship
management
(external and
internal)
No supplier relationship
management (SRM)
No engagement with other functions
Limited SRM Moderate
integration with internal functions
Portfolio approach to relationships
Engagement in SRM Extensive internal
integration
Seen as customer of
choice by suppliers
Engage with other stakeholders
Close internal alignment
Use of
technology
Ad hoc use of IT Use of
spreadsheets
Automation of clerical activities to reduce cost
Investments in ICT E-procurement
Extensive use of e-procurement + internet technologies
Skills and
knowledge of
people
Clerical Technical skill
gaps
Some training provided
Technical competence
Negotiation
and commercial skills
Training
provided
Professionalized Highly technical
competence
Good project management skills
Systematic integration of
training plans
Professionalized Highly technical competence
Transformational and leadership skills
Continuous
development Attracts top talent
Key
performance
indicators
(KPIs)
No structured targets and limited follow-
up Focus on
number of purchase orders handled, volume metrics
and order
process compliance
Targets and reviews focus on financial
results Focus on price reductions and contract coverage
Balanced Scorecard Focus on total cost
of ownership (TCO)
and business alignment
Comprehensive Balanced Scorecard
Continuous monitoring
Focus on TCO, innovation, sustainability and continuous
improvement
How visible is
procurement?
Not prominent Elevated profile based on savings
potential
Highly visible internally and externally
Internally procurement is seen as a driver
of competitive advantage
Supply chain champion
Table 2 The Procurement Maturity Model
NHS Shetland Current position
NHS Shetland Current position
29 | Page NHS Shetland: Procurement Strategy 2016-2019
8.3.1 PCIP as a strategic measurement tool
The Procurement and Commercial Improvement Programme is a detailed
assessment tool designed to measure a Public Body’s procurement processes
and results in line with best practice. The tool can and is used by Public
Procurement Functions to plan and execute their strategies, policies, governance
and execution plans. Procurement functions can utilise the tool to ensure that
any strategic and operational processes are in line with Best Practice and receive
recognition for this at assessment time. The PCIP Lite assessment which is in
use for NHS Shetland can be found at Appendix C.
30 | Page NHS Shetland: Procurement Strategy 2016-2019
9 Strategy ownership & contact details
This strategy will be subject to ongoing review and formal regular review by the
NHS Shetland Director of Finance and the Head of Finance & Procurement. This
will take account of any changes to organisational objectives and in NHS and
Scottish Government policies and strategies. This review will also take account of
the key targets and National Framework objectives under development by the
Procurement Steering Group.
Name: Colin Marsland
Designation: Director of Finance
Email: [email protected]
Telephone: 01595 743070
Name: Karl Williamson
Designation: Head of Finance &
Procurement
Email: [email protected]
Telephone: 01595 74 3301
31 | Page NHS Shetland: Procurement Strategy 2016-2019
10 Policies, tools & procedures
National Policies, Tools and Legislation:-
Scottish Model of Procurement
Changes to European Directives
Public Procurement Reform Programme
Suppliers Charter
EU Procurement Thresholds
Procurement Journey
PCIP
Public Contracts Scotland
Public Contracts Scotland – Tender
Information Hub
The Construction (Design and Management) Regulations 2015.
NHSS Additional Terms and Conditions of Supply (Food) 2015
NHS Shetland Local Policies
All local policies and procedures can be accessed on the NHS Shetland Website
32 | Page NHS Shetland: Procurement Strategy 2016-2019
11 Appendices
11.1 Appendix A – NHS Shetland Procurement Steering Group
Terms of Reference
Role & remit of Procurement Steering Group
Membership
Board Chairman (Chair)
Director of Finance
Director of Pharmacy
Director of Nursing & Acute Services
Director of Community Health & Social Care
Director of Human Resources & Support Services
Head of Estates
Clinical Director of Dental Services
Supported by:
NHS National Services Scotland representative
Head of Finance & Procurement
Head of IM&T and eHealth
PA to Board Chairman
Remit
To create and implement the Procurement Strategy Oversee implementation of annual action plans
Monitor compliance with national contracts To ensure that procurement matters are integrated in wider corporate
plans and objectives, e.g. clinical strategy, property strategy, etc.
Oversee contractual & tendering arrangements Act as project board for specific projects, e.g.
o Procurement efficiency and redesign project
33 | Page NHS Shetland: Procurement Strategy 2016-2019
Monitor performance of procurement function, including: o capability assessments
o Best Practice Indicators o achievement of work plan savings
Frequency of meetings
minimum two times a year specific meetings where required for project management
Governance
annual report to EMT and Board
procurement strategy to be approved by EMT and Board
Key Performance Indicators
Year on year improvement in external Procurement and Commercial Improvement Programme (PCIP) evaluation rating. Target
Delivery of the annual Procurement Action plan Production of annual report for April board meeting
Year on year improvement in compliance in the use of national contracts
11.2 Appendix B – NHS Shetland Procurement User Group Terms
of Reference
Role & remit of Procurement User Group Membership
Head of Finance & Procurement (Chair) Estates Project Manager
Procurement Supervisor Facilities Manager Primary Care Service Manager
Dental Business Manager Chief Medical Physics Officer
Assistant Director of Nursing (Hospital) Head of IM & T (Or nominated deputies)
Supported by: Procurement Steering Group
Remit • Implement the Procurement strategy • Implementation of annual action plans
• Implement and monitor contractual & tendering arrangements • Act as project board for specific projects, e.g. Pecos implementation
34 | Page NHS Shetland: Procurement Strategy 2016-2019
• Monitor performance of procurement function, including:
o capability assessments o Best Practice Indicators
o achievement of work plan savings
• Train and educate staff on procurement issues
• Promote the importance of good procurement practices throughout the Board
• Monitor compliance with national contracts and act as the decision-making group for applications to go outside of national contracts (with the proviso that the Head of Finance & Procurement or the Director of Finance can
sanction an application to go outside of national contract without the group’s prior approval if there is a genuine need for a swift decision. The
Head of Finance & Procurement or Director of Finance will seek to canvass opinion of other members by email where this is feasible. Such decisions will then be ratified at the next available PUG meeting
Frequency of meetings
• Monthly
Governance • Report to Procurement Steering Group
Owner:
11.3 Appendix C – PCIP ‘Lite’ Assessment
36 | Page NHS Shetland: Procurement Strategy 2016-2019
37 | Page NHS Shetland: Procurement Strategy 2016-2019
38 | Page NHS Shetland: Procurement Strategy 2016-2019
39 | Page NHS Shetland: Procurement Strategy 2016-2019
40 | Page NHS Shetland: Procurement Strategy 2016-2019
Table 3 PCIP 'Lite' Question set
41 | Page NHS Shetland: Procurement Strategy 2016-2019
11.4 Appendix D – PESTLEE Analysis
Figure 7 PESTLEE Analysis
42 | Page NHS Shetland: Procurement Strategy 2016-2019
11.5 Appendix E NHS Shetland Procurement Balanced Scorecard
Figure 8 Procurement Balanced Scorecard Summary
43 | Page NHS Shetland: Procurement Strategy 2016-2019
The summary presented in Figure 8 above is fed through a monthly measuring process of the following targets and
measures.
Figure 9 Balanced Scorecard Measures & Targets
Owner:
12 Glossary
Below is a NHS Scotland glossary covering many aspects of NHS Procurement;
A fully comprehensive Procurement glossary has been developed by the
Partnership for Public Procurement and can be found at the following location;
http://www.globalpublicprocurement.org/Resources/Glossary/.
ABV Full Title More Information
A&A Ayrshire and Arran Health Board
ABCD Achievements; Benefits;
Concerns; Do next
ACD Automatic Call Distribution
ACAS Advisory, conciliation and
Arbitration Service
AEP Active Engagement Process
AM Availability Management
AMIS Availability Management
Information System
APUC Advanced Procurement for
Universities & Colleges
ASP Application Service Provider
BCM Business Continuity
Management
BCP Business Continuity Plan
BIA Business Impact Analysis
BRM Business Relationship Manager
BS Business Services
BSI British Standards Institution
BSM Business Service Management
BTC Blood Tissues and Cells
CAB Change Advisory Board
CAB/EC Change Advisory Board /
Emergency Committee
CAP Commodity/Clinical Advisory
Panel
CAPA Corrective Action, Preventative
Action
CAPEX Capital Expenditure
Careb Commodity Action Report &
Eps Bulletin
CCA Corporate and Clinical Affairs
CCM Component Capacity
Management
45 | Page NHS Shetland: Procurement Strategy 2016-2019
CCM Catalogue Content
Management
A system used by NSS and Health Boards
CDW Corporate Data Warehouse Database where info is kept
CEH Customer Engagement Hub Project to get feedback from various departments inside
National Services Scotland
CEO Chief Executive Officer
CLO Central Legal Office
CFIA Component Failure Impact
Analysis
CFS Counter Fraud Services
CI Configuration Item
CIC Commercial in Confidence
CLO Central Legal Office
CMDB Configuration Management
Database
CMIS Capacity Management
Information System
CMM Capability Maturity Model
CMMI Capability Maturity Model
Integration
CMS Configuration Management
System
COTS Commercial off the Shelf
CSF Critical Success Factor
CSG Clinical Support Group
CSI Continual Service
Improvement
CSIP Continual Service
Improvement Programme
CSP Core Service Package
CSR Corporate Social Responsibility
CR Change request
CTC Call to Competition
CTI Computer Telephony
Integration
D&G Dumfries and Galloway Health Board
Dashboard A document that is used to
show project information for
example upcoming milestones
or any risks or issues
DET Divisional Executive Team
DIKW Data-to-Information-to-
Knowledge-to-Wisdom
DOF Director of Finance
DOI Declaration of Interest
DP Developmental Procurement
46 | Page NHS Shetland: Procurement Strategy 2016-2019
DPS Dynamic Purchasing System
DST Decision Support Tool
EMT Executive Management Team
EPB Efficiency Portfolio Board
EPS E-Procurement System Online procurement system
eSCM-CL eSourcing Capability Model for
Client Organisations
eSCM-SP eSourcing Capability Model for
Service Providers
ESPC East of Scotland Procurement
Consortium
FA Framework Agreement A Framework Agreement is a general term for agreements
with suppliers that set out terms and conditions under which
specific purchases (call-offs) can be made throughout the term
of the agreement. In most cases a framework agreement itself
is not a contract, but the procurement exercise to establish a
framework agreement is subject to the public procurement
rules.
FMEA Failure Modes and Effects
Analysis
FOI Freedom of Information
FTA Fault Tree Analysis
GG&C Greater Glasgow and Clyde Health Board
GMC General Medical Council
GRN Goods Received Note
HB Health Board A regional board of the NHS. Greater Glasgow and Clyde for
example
HCSI Health & Social Care
Integration
HDS Hosted Desktop Service
HFS Health Facilities Scotland
HiFi Health Impact Financial
Impact
HiPP Health Innovation
Procurement Portal
HOP Head of Procurement
HPDG Heads of Procurement Delivery
Group
HPS Health Protection Scotland
HR Human Resources & Workforce
Development
HSCMB Health & Social Care
Management Board
HubCo's Scottish Futures Trust
IIA Intensive Improvement An investigation into the spending of a Health Board. To try
47 | Page NHS Shetland: Procurement Strategy 2016-2019
Activity and find where savings can be made
IDA Internal Delivery Address Ward name/number
IPR Intellectual Property Rights
IRR Internal Rate of Return
ISD Information Services Division
ISG IT Steering Group
ISM Information Security
Management
ISMS Information Security
Management System
ISO International Organization for
Standardisation
ISP Internet Service Provider
IT Information Technology
ITSCM IT Service Continuity
Management
ITSM IT Service Management
itSMF IT Service Management Forum
ITT Invitation to Tender
IVR Interactive Voice Response
KEDB Known Error Database
KPI Key Performance Indicator A department objective/target
KPI Key Performance Indicator
LGPN Local Government
Procurement Network
LOS Line of Service
MI Management Information
MoR Management of Risk
MTBF Mean Time Between Failures
MTBSI Mean Time Between Service
Incidents
MTRS Mean Time to Restore Service
MTTR Mean Time to Repair
NISG National Information Systems
Group
NP National Procurement
NPV Net Present Value
NSD National Services Division
NSS National Services Scotland A Health Board of National Health Service Scotland
OEM Oracle Enterprise Management
OGC Office of Government
Commerce
OJEU Official Journel of the
European Union
OLA Operational Level Agreement
OPEX Operational Expenditure
48 | Page NHS Shetland: Procurement Strategy 2016-2019
OPSI Office of Public Sector
Information
ORG Operational Reform Group
PBA Pattern of Business Activity
PCA Procurement Capability
Assessment
PCIP Procurement and Commercial
Improvement Programme
Replacement for PCA
PCS Public Contracts Scotland
PCST Public Contracts Scotland -
Tenders
PECOS Professional Electronic
Commercial Ordering System
Computer system allowing ward nurses etc to order stock
immediately
PFI Private Finance Initiative
PFPI Patient Focus Public
Involvement
PFS Prerequisite for Success
PHI Public Health and Intelligence
PID Project Initiation Document
PIN Prior Information Notice
PIR Post Implementation Review
PPF Public Partnership Forum
PPP Public Private Partnerships
PRDG Pan Public Sector Delivery
Group
PPRB Pan Public Sector Reform
Board
PQQ Pre-Qualification Questionnaire
PRB Procurement Reform Bill
PS Practitioner Services
PSA Projected Service Availability
PSG Procurement Steering Group
PUG Procurement User Group
QA Quality Assurance
QMS Quality Management System
R&I Risks and Issues Issues are problems with a project. Risks are things that could
become problems in the future
RCA Root Cause Analysis
RFC Request for Change
RIDDOR Reporting of Injuries, Diseases
and Dangerous Occurrences
Regulations
ROI Return on Investment
RPO Recovery Point Objective
RSS Really Simple Syndication
49 | Page NHS Shetland: Procurement Strategy 2016-2019
RTO Recovery Time Objective
SBAR Situation, Background,
Assessment, Recommendation
SA Spend Analyser System use to present cost information in a visual and
interactive format
SAO Senior Accountable Officer
SAC Service Acceptance Criteria
SAS Scottish Ambulance Service
SACM Service Asset and
Configuration Management
SBEG Strategy Board Engagement
Group
SBU Strategic Business Unit Business Unit within NSS. There are 6, including PCF
SCD Supplier and Contract
Database
SCIN Scottish Clinical Imaging
network
SCM Service Capacity Management
SEPG Scotland's Efficiency &
Productivity (SR10)
SFA Service Failure Analysis
SFI Standing Financial Instructions
SG Scottish Government
SGHD Scottish Government Health
Directorate
SHSG Scottish Health Service Group
SIP Service Improvement Plan
SKMS Service Knowledge
Management System
SLA Service Level Agreement
SLM Service Level Management
SLP Service Level Package
SLR Service Level Requirement
SME Small Medium Sized
Enterprises
SMO Service Maintenance Objective
SMT Senior Leadership Team
SNBTS Scottish National Blood
Transfusion Services
SoC Separation of Concerns
SOCG Serious Organised Crime
Groups
SOP Standard Operating
Procedures
SOR Statement of requirements
SPI Service Provider Interface
50 | Page NHS Shetland: Procurement Strategy 2016-2019
SPCD Scottish Procurement and
Commercial Directorate
SPM Service Portfolio Management
SPO Service Provisioning
Optimisation
SPOF Single Point of Failure
SRO Senior Responsible Officer
STG Strategic Planning Group
SWOT Strengths Weaknesses
Opportunities Threats
Tableau System used to develop and
present dashboards
TCO Total Cost of Ownership
TCU Total Cost of Utilisation
TO Technical Observation
TOR Terms of Reference
TQM Total Quality Management
TUPE The Transfer of Undertakings
(Protection of Employment)
UC Underpinning Contract
UP User Profile
VBF Vital Business Function
VFM Value for Money
VOI Value on Investment
WIP Work in Progress
WOS West of Scotland Consortium
Table 4 Glossary of Frequently Used Terms
51 | Page NHS Shetland: Procurement Strategy 2016-2019
13 Bibliography
Barney, J. B. (1991). Firm resources an sustained competitive advantage.
Journal of Management, 99-120.
Barney, J. B. (1995). Looking inside for competitive advantage. Academy of
management executive, 49-61.
Directorate for Health Finance and Information, S. G. (2012). Health Directorate.
Retrieved from Scottish Government Health and Social Care Directorates:
http://www.sehd.scot.nhs.uk/mels/CEL2012_05.pdf
Dyer and Singh, H. (1998). The relational view: Cooperative strategy and
sources of inter-organizational competitive advantage. Academy of
Managemetn Review, 660-79.
Government, S. (2016). Procurement Journey. Retrieved from Scottish
Government Procurement Journey:
https://www.procurementjourney.scot/
Government, T. S. (2016). Guidance under the Procurement Reform (Scotland)
Act 2014. Edinburgh.
Government, T. S. (2016). NHS Shetland Public Contracts Register. Retrieved
from Public Contracts Scotland:
http://www.publiccontractsscotland.gov.uk/Contracts/Contracts_Search.a
spx?AuthID=AA00401
Government, T. S. (2016). Procurement and Commercial Improvement
Programme. Retrieved from Procurement Journey:
https://www.procurementjourney.scot/procurement-and-commercial-
improvement-programme
Kaplan, R. S., & Norton, J. P. (1996). Translating Strategy into Action; The
Balanced Scorecard. Boston, Massachusetts: Harvard Business School
Press.
52 | Page NHS Shetland: Procurement Strategy 2016-2019
Lavie, D. (2006). The competitive advantage of interconnected firms: An
extension of the resource based view. Academy of Management Review,
638-58.
Mclelland, J. F. (2006). Review of Public Procurement in Scotland - Report and
Recommendations. On behalf of Scottish Government.
Mena, C., van Hoek, R., & Christopher, M. (2014). Leading Procurement
Strategy – driving value through the supply chain. Kogan Page.
Nations, T. U. (2016). The power of principles. Retrieved from The UN Global
Compact: https://www.unglobalcompact.org/what-is-gc/mission/principles
Oxley, C. (2014). NHS Shetland policies and procedures. Retrieved from NHS
Shetland Website: http://www.shb.scot.nhs.uk/board/policies.asp
Satmetrix Systems, I. (2016). The Net Promoter Score. Retrieved from Net
Promoter Network website: https://www.netpromoter.com/know/
Scotland, A. G. (2015). NHS in Scotland. Audit Scotland.
Scotland, N. (2016). KSF Guidance. Retrieved from Knowledge and Skills
Framework Guidance: http://www.ksf.scot.nhs.uk/
Scotland, N. R. (2015). Shetland Islands Council Area - Demographic Factsheet.
National Records of Scotland.
Shetland, N. (2015). Local Delivery Plan 2015-18. Lerwick: NHS Shetland.
SSI. (2014). Procurement Reform (Scotland) Act 2014. Crown Copyright.
Scotland: Legislation.gov.uk.
SSI. (2015). The Public Contracts (Scotland) Regulations 2015. Crown
Copyright. legislation.gov.uk.
SSI. (2016). The Procurement Scotland Regulations 2016. Crown Copyright.
Legislation.gov.uk.
Supply, C. I. (2016). Home. Retrieved from CIPS: http://www.cips.org/
Supply, T. C. (2016). Effective CSR Implementation, CIPS Position. Retrieved
from Chartered Institute of Procurement & Supply Website.
53 | Page NHS Shetland: Procurement Strategy 2016-2019
WebFinance, I. (2016). Value for Money definition. Retrieved from
http://www.businessdictionary.com/:
http://www.businessdictionary.com/definition/value-for-money-VFM.html
54 | Page NHS Shetland: Procurement Strategy 2016-2019
DOCUMENT CONTROL SHEET:
Key Information:
Title: NHS Shetland Procurement Strategy
Date Published/Issued: 29/07/2016
Date Effective From: TBC
Version/Issue Number: V0.1
Document Type: Strategy
Document Status: Draft
Author: S.Mclaughlin
Owner: TBC
Approver: NHS Shetland Board
Approved by and Date: TBC
Contact: TBC
File Location: TBC
Revision History:
Version
:
Date: Summary of Changes: Name:
V0.1 29/07/2016
6
First draft S.Mclaughlin
V0.2 20/09/2016
6
Second draft A.Roemmele
V0.3 29/09/2016 Sustainable/Ethical procurement A.Roemmele
V0.4 18/10/2016 General updates/ corrections A.Roemmele
Approvals: This document requires the following signed approvals.
Name: Signature: Title: Date: Version:
Karl Williamson Chairperson Procurement User
Group Chair
28/09/2016 V0.2
Board Chairman
- Ian Kinniburgh
Chairperson Procurement Steering
Group Chair
05/10/2016 V0.3
Board Chairman Chairperson Shetland Board
Meeting
13/12/2016 V0.5
Distribution: This document has been distributed to
Name: Title/Division: Date of Issue: Version:
NHS Shetland PUG 25th May 2016 V0.1
NHS Shetland PUG 20th September
2016
V0.2
NHS Shetland PSG 29th September V0.3
NHS Shetland Strategy & Redesign
22nd November V0.4
55 | Page NHS Shetland: Procurement Strategy 2016-2019
NHS Shetland Board 13th December
2016
V0.5