Case Study

Creating A Strategic Procurement Partnership To Reduce Costs by 25%

Executive Summary

The National Health Service is a cohesive healthcare system within the United Kingdom, with various Trusts in different locations. These Trusts are run as individual organisations, each with their own specific needs and procedures.

This essentially means that each one will be managed differently and have various key stakeholders taking ownership of their individual requirements. We have been working with the NHS for decades and our partnership works exceptionally well. Here we take a look at how three different Trusts benefited from forming a strategic procurement alliance.

The various requirements of each Trust were highlighted when undertaking this project, each approaching our service area in differing ways encompassing:

  • Approach to procurement and supply chain management
  • Availability of Management Information and how it is used
  • Order process and delivery mechanisms

Our extensive work with the NHS means we have a unique insight into what works well and could make recommendations to improve this service area from top to bottom. High level engagement meant that we could identify potential strategies to improve service and reduce cost. The strategy to consolidate supply chain, enhance purchasing power through volume leverage and streamline service, has delivered all of the key objectives (and more) that were defined at the beginning of the process.

The Challenges and the Solutions

The engagement between the SF Taylor project team and key stakeholders within each trust, enabled us to identify the key areas that needed to be addressed. In doing so, we were able to put forward proposals of how each Trust could deliver against overarching procurement objectives. Keep reading below, to discover how our solution of creating a strategic partnership, with one sole supply, solved the challenges facing each Trust and added value to their organisation.

Solutions

We engaged fully with the Trust members and initiated a project management team, who worked across all Trusts and with key stakeholders. The high level of information and data available, enabled us to build a detailed proposal on how one unified strategic service would work, and what it would deliver:

1. Consolidation of 36 Suppliers to A Sole Supply Solution

SF Taylor have provided a compliant, accredited, strategic partner and sole supply solution, replacing 36 previous suppliers, providing various offerings. This has streamlined services, efficiency, quality and reduced cost across the board almost immediately, supported by comprehensive Management Information reporting, providing the Trusts with a complete contract overview on a monthly basis.

2. Increased Control on Spend

We implemented our central command suite HubTec, which links directly to our Management Information System. This means that orders can be tracked and viewed by end users online 24/7, giving full visibility to end users. This immediately increased the control on spend and decreased obsolescence and minimized exposure to stock liability.

3. Compliant Route to Market

We provided a compliant route to market, awarded through an approved framework. This affored the Trusts a controlled and regulated service, without losing accessibility. This route to market will allow the service to continue to develop and grow, with future strategies of the cluster.

4. Joined up Procurement Process

The procurement process benefits from a closed Purchase2Pay loop infrastructure, and with PEPPOL compliance future proofed for further development.

5. Elimination of Labour-Intensive Processes

Combining our new compliant workflows, localised and approved templates, simplified ordering and procurement processes, we were able to eliminate various procedures which were costly, time consuming and labour-intensive. The benefits of which can be felt throughout the team.

“We wanted to implement a new print ordering system to over 1,000 users, which we understood was a large undertaking. However, SF Taylor took on the challenge with ease and improved our ordering system, communications and creative campaigns enormously. Our new way of working has been hugely successful and impacted our department in a really positive way, with SF Taylor providing all of the support” 

— Procurement Head, NHS

Result

SF Taylor successfully created a strategic procurement body, purchasing collaboratively for three Trusts reducing overall costs, by consolidating to one supplier.

Dealing with one supplier, rather than having a hugely diversified supply chain, not only made communication easier on a day-to-day basis, but also streamlined their processes and made it easier for their team to create new collateral, with access to templated assets. This has also increased brand and regulatory compliance. We partner with our clients, ensuring that the version and document control is maintained, in line with local and national guidelines. Our systems and workflows monitor, maintain and govern these areas by offering a fully compliant route to market for the Trusts we work with.

Overriding benefits of this partnership has resulted in a 25% reduction in spend. Reducing suppliers to one sole supplier, delivered a streamlined and more effective, compliant service. Additional contractual commercial targets were also met through the on-going pro-active management of the new service, adding further value to the cluster.

The success of this strategic procurement partnership, generated much interest from other NHS Trusts, as well as public and private sector organisations, to see how we could help them implement strategic changes to their current service model, based on our experience.

Do You Want to Discover the Benefits of Working With Us?

A lack of time and resources are both key factors which prevent organisations to take stock of the strategies they have in place. It’s often necessary to question; Is this strategy fit for purpose in meeting current and future objectives?

We provide the time and resources to work with you, to look at your current procedures and spend and offer recommendations and proposals, based on our findings. We see ourselves as a partner to help guide you – an integral part of your business and your success. If you would like to find out how we do this, take a look at our print review process here.

Contact us today to book your own print audit

Simply email sales@sftaylor.com  call 0161 429 7200 or book a FREE print audit online here