Ian B Shepherd MCIPS

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e-Commerce In Action

Leeds 9th December 2002
Ian B Shepherd MCIPS
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Programme.

• Targets in NHS Procurement
• Why e-Commerce?
• Crossing the Chasm
• Challenges, Results New Horizons

e-Commerce in Action
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Targets in NHS Procurement
Modernising Government (White
Paper, March 1999)
Modernising Procurement (NAO Report,
October 1999)
The NHS Plan A Plan for Investment, A Plan for
Reform (Secretary of State for Health, 2000)
Shared Financial Services in the NHS (NHS
Executive, 2000)
Shifting the Balance of Power (DOH, July 2001)
E-Commerce_at_its.best.UK (Cabinet Office,
March 2001)
UK Online Programme (OGC
report,March 2002)
Modernising Supply in the NHS (PaSA,
April 2002)
An information Society for All (e-Europe, May
2002)
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Targets in NHS Procurement
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Traditional Procurement Process
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Why e-Commerce?

• Track record Project gateway
• Good starting point
• National pilot Purchasing cards
• Strategic importance
• Preparation for shared services
• Focus on cost not just price

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Why e-Commerce?
Errors
Errors
Errors
Errors




Suppliers
Customers or Materials Management
Eros
Receipt Distribution
Queries
Queries
Queries
Queries
to fundamentally change how we trade
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Why e-Commerce?
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Crossing The Chasm
What We Wanted To Achieve..

• Technical solution Trust Suppliers
• Faster more responsive transactions
• Accurate reliable order fulfilment
• Reduced errors price, pick receipt
• Absolute price match requisition to payment
• High quality information reporting
• Improved service to customers
• Consolidate transactions multi user

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Crossing The Chasm
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Procurement Process with GHX
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Crossing The Chasm
Transmit order via GHX
GHX Acknowledges order
Catalogue Search
Requisitioner
Authoriser
Vetter
Add the items to your shopping basket You may or
may not choose to state the quantity of products
you want at this stage
Edit the items in the basket / template e.g.
quantity of products desired. May chose to save
this order as a template if known to be a repeat
requirement
Click to send the order to the manager so that it
can be authorised. Confirm or enter the
appropriate delivery and cost info. May at this
stage write comments to suppliers or for
purchasing approval
Search the catalogue for desired
goods Alternatively go straight to basket
function to edit/send the templates already
created. Alternatively, use materials management o
r call-off order
GHX real time order acknowledgement, confirming
stock availability and delivery status to the
customer in Eros
Click on the approval function to confirm order
details transmit to the suppliers system via
GHX
e-Commerce in Action
making life easier for customers
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Challenges Results

• Commitment from supplier base
• Adopting industry standards
• Delivering shared services
• Supply chain integration
• Collaborative working
• Cost Value transparency

transactional volume at a lower cost with
zero errors
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(No Transcript)
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Challenges Results
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Mutual Benefits
SME Data - an example..

• Annual sales 215k
• Different products 63
• Total orders 559
• Lines per order 1.24
• Average order value 384
• Distribution cost 7,271

50 13 4,300 650
Potential Saving 6,591 (gt3)
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Mutual Benefits

• Less queries errors (target zero)
• Catalogue content
• Orders
• Receipts
• Returns
• Invoices
• More time to manage relationships
• Reduced supply chain costs
• Contract compliance high
• On time payments

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Absolute Price MatchOrder to Payment
value of invoices processed increased by 35
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Enormous Potential To Reduce Costs
s
x '
Suppliers
s
y '
Suppliers
Trust
Trust
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New Horizons

• P

• Phone lt1
• Post 7
• eMail 11
• B2B 11
• EDI 23
• Autofax 47

Suppliers
Customers or Materials Management
Receipt Distribution
Eros/GHX
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New Horizons

• Performance measurement
• National catalogue coding structure
• Auto identification smart-tags
• Integrated replenishment
• Intelligent point of use demand capture

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Peninsula Purchasing Supply Alliance
New Horizons
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Thought for Tomorrow..
We are what we repeatedly do. Excellence, then
is not an act, but a habit.
Aristotle
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Thank you for listening
my contact details areTelephone 01752
315716e-mail ian.shepherd_at_phnt.swest.nhs.uk
Peninsula Purchasing and Supply Alliance -
Meeting the needs of Healthcare in Devon and
Cornwall
e-Commerce in Action