Sourcing & Procurement, sponsored by Achilles
In this category all three entries produced good scores, but this was a tough one to compete in. The NHS has been tasked with delivering £20bn in savings by 2014, with a significant proportion of this coming from the development of more efficient and effective procurement. Managing a £300 million department of health capital fund, NHS Supply Chain has worked with suppliers of capital equipment to understand where cost could be released from the supply chain. Through commitment from 169 NHS Trusts on bulk buying deals in the capital equipment market major savings have been made.
Vodafone took home the trophy in 2012. This year’s entry focused on the recent replacing of the company’s ten year old “Supplier Week” handset procurement model with a new initiative called “Terminals Commercial”. The new model combines the commercial and procurement function and is responsible for the agreements and terms, negotiations and relationships with all suppliers that deliver terminal products. Representing a €7bn spend category, the new model is the result of a team of global and local experts working together to produce one true global team, but as a hybrid organisation with the central team driving the strategic supplier management, targets and results, and local teams managing the local requirements down to operational execution. However, GlaxoSmithKline has recently undertaken a major cross border transformation of its function for the purchase of laboratory supplies and equipment. This project has radically changed historic procurement processes. It has rationalised and simplified the supply base by 90 per cent, implemented systems and controls to increase compliance to over 95 per cent – while reducing cycle times, removing waste at all levels and delivering significant sustainable value of multiple millions into the business.
The judges say: “This is a highly innovative project for Pharma R&D, bringing good procure-ment processes to an area that has traditionally been seen as science only. They have demonstrated excellent supplier management and key suppliers have been identified and managed as partners.” For this reason the judges chose GlaxoSmithKline.
– NHS Supply Chain