QHSSP SCMIS Service Delivery Model - Services

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QHSSP SCMIS Service Delivery Model - Services

  1. 1. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Service Delivery Model Services & Engineering Products Supply Chain Management Integration Strategy Service Delivery Models Sub-Project 21 January 2008 V0.3 Page 1 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  2. 2. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models TABLE OF CONTENTS 1. Background…………………………………………………….. 4 2. Methodology……………………………………………………. 4 3. The Existing Models..………………………………………….. 4 4. Criteria and Drivers for Change………………………………. 6 5. Development of Service Delivery Models……….…………… 7 ATTACHMENTS & APPENDICES 1. Abbreviations and Glossary of Terms…………………………. 9 2. Accountabilities Document…………….………………………..10 Page 2 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  3. 3. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models EXECUTIVE SUMMARY The design, development and implementation of service delivery models within specific commodity groups has been identified as an integral component or sub-element of the Supply Chain Management Integration Strategy (SCMIS) Project. The analysis and recommendations contained in this report focused on those functions associated with the supply of Services and Engineering related products. As a significant component of service related procurement activities relate to building and facilities maintenance, the Services product group has been amalgamated with Engineering Products and workshopped simultaneously. Observations and recommendations relevant to services that are discussed within this document, therefore primarily relate to engineering, maintenance and/or facilities management (which in many Districts fits within the responsibilities of the Facilities or Building Engineering & Maintenance Manager). Consultation in relation to the development of this service delivery model was undertaken with key stakeholder representatives in the form of two workshops conducted in Brisbane in December 2007. During the workshops, participants were provided with opportunities to analyse the existing models of service delivery and provide input and ideas into the development of the future model/s. Current service models for the purchase and supply of items identified in these product groups appear varied throughout Queensland Health and it is acknowledged that opportunities exist for change and improvement due to, deficiencies in terms of standardisation of process and a lack of a strategic focus to procurement and related activities. The preferred service delivery model for the supply of Services and Engineering related products would feature the following design elements: - • BEMS staff to continue to manage imprest stocks of engineering and maintenance products at the local level; • Procurement of Engineering products and services to be undertaken by Supply Services staff and consolidated within the six (6) Supply Hubs; • In consultation with BEMS/District clients establish/develop a standardised suite of Hub contracts & SOA’s; • Consider temporary co-location of Supply Procurement Officers within BEMS Departments throughout the Supply Hubs, (and where applicable – specific sites/facilities); • Goods Receipt function to be undertaken at the point of supply/delivery (generally within BEMS), and appropriate training provided to staff to facilitate this; • Expand the use of CPC’s within BEMS areas specifically for low value/low risk purchases; • Support be provided to the proposed centralised reconciliation of CPC’s to dedicated QHSSP Administrative staff; • Consideration be given to reviewing and increasing the threshold for individual CPC transactions specifically for urgent/emergent situations. (Suggested that a ceiling of $5000 is more realistic than the current $2000). • Establish regular communication networking forums between BEMS and Supply Services staff Implementation of the preferred model would be undertaken incrementally, on a site by site basis, with timeframes and rollout schedules developed as part of transition arrangements. As key stakeholders in this process, District staff would be consulted and involved throughout all phases of service transitioning. Page 3 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  4. 4. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models 1. BACKGROUND The aim of the Supply Chain Management Integration Strategy (SCMIS) is to design, develop and implement service delivery models that support an integrated, cost effective supply chain that meets agreed customer service levels. The creation of a single, integrated supply chain is expected to achieve significant benefits in terms of product aggregation, transportation economies and realignment of procurement activities as well as minimising duplication of tasks and large transactional workloads for both Queensland Health and its suppliers. This strategy moves towards the adoption of a single supply chain network across Queensland Health for a pre-determined range of products including clinical consumables, dental and pathology supplies. To achieve this objective, the warehousing and distribution function is to be performed by three strategically situated warehouses or Distribution Centres, located in South East Queensland, Townsville and Cairns. To support these Distribution Centres, a new model of service delivery is required for specific commodity/product groups. This report provides an analysis of the current models for the supply of Services and Engineering Products and outlines the preferred options for future service models relating to the supply of these items throughout Queensland Health. 2. METHODOLOGY As a substantial component of the services procured within Queensland Health relate to facilities maintenance and/or Building & Engineering, a decision was made to workshop both the Services and Engineering product groups collectively. Consultation in relation to the development of an appropriate service delivery model was undertaken with key stakeholder representatives in the form of two workshops conducted in Brisbane in December 2007. These workshops included representation from the following areas:- • Supply and Contract Managers • Procurement Officers • District Building, Engineering & Maintenance Services (BEMS) staff • Other District staff and clients • Capital Works and Asset Management Branch (CWAMB) • Health Services Purchasing & Logistics (HSPL) During the workshops, participants were provided with opportunities to analyse the existing models of service delivery and provide input and ideas into the development of future model/s. 3. THE EXISTING MODELS Currently there are a range of processes or methods of obtaining Services and Engineering related products within Queensland Health. The following provides a summary of the five primary processes or models presently in place: - • BEMS/District staff requisition > Supply staff order > BEMS staff receipt goods or service • BEMS/District staff requisition > Supply staff order > Supply staff receipt goods or service • BEMS staff manage the entire process from requisition > Order > goods receipt • Corporate Purchasing Card used by BEMS staff to procure lower value goods and services • Princess Alexandra Hospital (PAH) has on-site store of Engineering supplies (inventory is recorded live in FAMMIS) Page 4 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  5. 5. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models In most sites where roles are shared between District/BEMS and Supply Services staff, requisitioning and receipting functions are undertaken within BEMS, with sourcing and obtaining quotes performed by both areas and order placement primarily within Supply Services. Variation also exists in terms of responsibility for the other elements of the procurement/supply cycle such as contract management. Similarly, usage of the Plant Maintenance Module of FAMMIS varies between Districts, thus impacting on how goods and services are procured. Whilst Corporate Purchasing Cards are used by some and costs linked back to individual work orders, others elect to make payments via General Purpose Voucher or via confirmation purchase orders. A lack of product knowledge on the part of Supply Services staff was identified by BEMS Managers as a contributing factor to their preference to manage the entire process internally within their own Departments. Goods and/or services provided by BTS are not incorporated in this analysis. During the workshops participants were asked to undertake a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis of the existing service models, and then consider alternate models which would have the capacity to effectively meet current and future service demands. The recognised strengths of the current model/s are summarised as follows: - • Outcome focussed and responsive to client/district needs • Single Plant Maintenance system adopted • Single point of control where entire process is managed within BEMS • Expert product/commodity group knowledge • Visible audit trails of Supply Services processes • Good Supplier and Buyer relationships exist It is worth noting however that the majority of these strengths apply predominantly to the models where BEMS Departments manage the entire process from requisition to goods receipt. Despite the obvious strengths and benefits of the current service models, the lack of a consistent approach highlights the following weaknesses: - • Inconsistent data capture and duplication • Poor utilisation of system functionality particularly work order to equipment • Lack of Engineering product knowledge within Supply Services • Models have been tailored and/or developed around available resources and not necessarily reflective of best practice methodology. • Variations in interpretation of policy and guidelines • Varying levels of responsibility between sites (even where service models are similar) • Difficulties in compliance with policy relating to competitive tendering/quotes • Perceived delays by BEMS clients where Supply Services staff place orders and arrange quotes/tenders • Costs associated with raising and processing orders where not the most appropriate procurement tool Further review and analysis of the strengths and weaknesses of current supply models for Services & Engineering products highlights opportunities that would contribute to improvements to service delivery within a new model, those being: - • Potential to standardise, streamline and simplify processes • Expanded use of Corporate and/or Hub based SOA’s and/or Managed Supply/Distribution Arrangements. • Standard approach and use of Plant Maintenance module within new Finance Business Solution that is rolled out. • Development of and access to a centrally managed contracts database and standard task specifications. Page 5 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  6. 6. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models • Opportunities to further integrate links between Purchasing and Asset Management • Expanded use of Corporate Purchasing Card for low value, low risk purchases • Potential to centralise the reconciliation of Corporate Purchasing Cards • Identification of unexplained elements of BEMS and Facilities Maintenance expenditure • Changing organisational structures and • Enhanced communication channels and forums The primary threats identified specifically for Engineering services and products were: - • Potential non-integration of Asset and Plant Maintenance modules • Vendor dissatisfaction with Tender/Audit processes and guidelines • Continued variation in systems used (i.e. BTS not using CMMS) • Single solution/preferred model may not be achievable with current resources • Administrative requirements associated with Corporate Purchasing Card reconciliation process (not the most appropriate use of Tradespersons’ time) Whilst current service models are both responsive to needs and regional and remote requirements, they have largely evolved relevant to the available resources and expertise within individual Districts. It is therefore imperative that any future model/s build on the strengths and opportunities identified above whilst continuing to maintain the high standard of service and client focus currently in existence. The service model developed and discussed within this document aims to build upon the recognised strengths and opportunities of current service delivery whilst addressing the weaknesses and threats identified above. 4. CRITERIA AND DRIVERS FOR CHANGE 4.1 Reason for Change Whilst acknowledged as being client focussed and responsive to needs, the current Supply function has recognised opportunities for change and improvement. These include: • The Supply function in Queensland Health is fragmented, (operating in excess of 34 separate supply facilities) • Lack of standardisation of processes • Lack of strategic focus to procurement • Limited support mechanisms, particularly in regional and remote locations • Unnecessary added costs in terms of 1. Duplication of functions 2. Freight Costs 3. Costs to vendors of multiple customers and Purchase order transactions 4. Volumes of Non-Stock • Wider acceptance of Corporate Purchasing Card 4.2 Drivers of Change The development of alternate and innovative service delivery models provides Queensland Health with the opportunity to configure and implement a procurement model around the physical distribution model, whilst meeting the objectives of Shared Services and the needs of customers. Options for consideration include but are not limited to the following: - • Centralised purchasing and Inventory Management of stock in three Distribution Centres. • Non-stock purchasing at Hub or spoke level. Page 6 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  7. 7. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models • Expanded use of Standing Offer Arrangements (Recognised widely as an opportunity to develop in terms of additional SOA’s for specific commodity groups). • Opportunities to better utilise technology (eg Shopping Card, e-procurement, CMMS – Plant Maintenance Module, increased use of barcode functionality and implementation of the new woG Finance Business Solution (FAMMIS replacement) which will assist in delivering workflow efficiencies). • Expanded use of Corporate Purchasing Card for low value/low risk purchases. The expected benefits for Queensland Health Shared Services Partner and Health Service Districts and, thus, the key drivers for change are: - • Improved service delivery • Consistency and standardisation of processes and documentation • Reduced duplication of tasks • Improved compliance with Corporate policy and guidelines • Reduced price of products (eg opportunities for bulk purchasing) • Wider access to a network of supply specialists (particularly in areas where high staff turnover rates are identified as a problem) • Offer of expanded services • Appropriate stakeholder participation and involvement in decision making Since the introduction of the Shared Services Initiative within Queensland Health, significant improvements in the delivery of Supply related services have been implemented. A matrix of roles and accountabilities associated with all elements of the Supply function (for all relevant stakeholders) has been developed and agreement from the Corporate Purchaser obtained in relation to these roles and accountabilities. (A copy of this matrix is included as Appendix 1). 5. DEVELOPMENT OF SERVICE DELIVERY MODELS 5.1 Analysis of Models Currently, procurement of engineering supplies and services is managed and/or undertaken either by SSP Procurement Officers or by District/Agency Building, Engineering & Maintenance (BEMS) staff. As summarised previously, the existing models vary throughout Queensland Health with requisitioning, sourcing, obtaining quotes, order placement and subsequent goods receipt roles distributed between District and/or BEMS staff and Supply Services staff. Essentially three alternate models were proposed and discussed, those being:- • Centralised to a single site supporting the whole of State • Consolidation of the supply role to BEMS; and • Integrated and collaborative approach by both BEMS and Supply Services It was acknowledged that centralising the procurement of engineering products and services across the whole of state will address a range of concerns; including minimising duplication of functions, whilst addressing standardisation in processes and documentation. However, concern was expressed that centralisation will result in a loss of client focus, a lack of local knowledge, increases in incorrect ordering and a decline in the overall level of product knowledge for staff performing the function. Whilst consolidation of the procurement function within BEMS Departments currently occurs at sites such as RBWH and Toowoomba, many facilities and Districts do not have the resources and expertise to provide this comprehensive service and this is particularly evident in more regional and remote areas. Apart from the resource implications associated with this model, clarification on the roles associated with all elements of the supply function relevant to Engineering Products and Page 7 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  8. 8. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Services would be required (both SSP and District), to ensure a consistent approach is adopted across the organisation. Many BEMS Managers commented that, in their view, Supply staff did not have a sufficient level of expertise and understanding relevant to engineering and maintenance issues to undertake Procurement of Engineering products and services. Appropriate training and allocation of dedicated Procurement Officers for engineering products and services, may however address this issue and assist in facilitating process improvements and service standardisation. Considerable discussion centred on expanding the use of the CPC for low value and low risk purchases, specifically for urgent repairs and maintenance products and services (which would compliment any future model implemented). It was noted that, despite improvements in the guidelines associated with the use of the CPC, the acceptance and usage of this procurement tool for low value and low risk purchases was not optimal. Comments from workshop participants indicate that the reconciliation process associated with the use of the CPC is largely administrative and not ideally what BEMS Managers feel appropriate use of Trades staff time. 5.2 Preferred Option The third service delivery model proposed suggests a more integrated and collaborative relationship between Supply Services and BEMS/District staff across the Hub structure in place within SSP (which currently operates at sites such as Gold Coast, Fraser Coast, Rockhampton and Sunshine Coast). In this model, a comprehensive range of contracts and SOA’s would be established, both corporately, (if suitable) and/or across Hubs. (This is consistent with the recommendations of the Contract Management Service Model that has been endorsed for implementation). Routine/urgent products and services would be obtained by BEMS staff using the CPC. Current transaction limits may need review, as it was noted that $2000 is rarely sufficient to cover costs associated with urgent plant/equipment repairs. BEMS staff would then utilise on-line requisitions for the other planned maintenance and purchasing activity, with Supply staff managing the procurement process. Issues and concerns relating to timely processing of orders and product/service knowledge and expertise could be addressed by co-locating the Procurement officers within BEMS Departments within the Hubs for a period of time (where QHSSP Supply staff are not currently undertaking the procurement function) to enable procurement staff to gain improved product/service knowledge. This approach would also facilitate information sharing (particularly in relation to policy, standards and associated guidelines) between both BEMS and Supply Services and may thus prove valuable in terms of training and development of staff in both areas. Temporarily collocating Supply Procurement Officers within BEMS Departments will improve the skills and knowledge required of staff as well as providing a better understanding of client expectations and requirements within this specialised area. This model also provides opportunities to realise other benefits to the organisation in terms of: - • Compliance with Government and Department Policy and Guidelines (State Purchasing Policy and Queensland Health Purchasing Policy & Procedures), • Standardisation of processes and documentation, • Segregation of duties, • Improved networking and communication channels, • Expanded range of contracts and improved data capture relevant to facilities management. To assist in expanding the use of the CPC (as discussed above), reconciliation of cards allocated within BEMS/Hub areas could be centrally managed by QHSSP staff. This approach has been adopted successfully within the private sector and whilst streamlining the procurement process for Trades staff, aligns the reconciliation process more appropriately to administrative staff. Similar examples of centralised reconciliation of accounts are evidenced by Cabcharge and Fuel Cards. Page 8 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  9. 9. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Expanded use of the CPC has the added benefit of the ability to allocate costs to individual work orders and would therefore require close collaboration between the card holder and the person undertaking the monthly reconciliation. It is understood that this option is subject to further investigation within QHSSP Finance. Some review of individual transaction limits associated with the CPC may be required to accommodate genuine urgency, but this could be undertaken on a case by case basis. Imprest stocks of engineering supplies would be maintained within BEMS areas, however it is not considered viable to warehouse inventory specific to this product group within the three Distribution Centres. The variety of products used and specialist requirements throughout the organisation support the continuation of maintaining local imprest management or just in time replenishment (as is utilised in some sites). As indicated in previous service model documents relating to other key product groups, current arrangements that differ in specific sites would remain in place and appropriate transitioning of these services would occur as the model is developed and implemented within each client area. As key stakeholders in this process, District/BEMS staff will be consulted and involved throughout all phases of service transitioning. 5.3 Recommendations The following recommendations are made in relation to the supply of Engineering products and services: - • BEMS staff to continue to manage imprest stocks of engineering and maintenance products at the local level; • Procurement of Engineering products and services to be undertaken by Supply Services staff and consolidated within the six (6) Supply Hubs; • In consultation with BEMS/District clients establish/develop a standardised suite of Hub contracts & SOA’s; • Consider temporary co-location of Supply Procurement Officers within BEMS Departments throughout the Supply Hubs, (and where applicable – specific sites/facilities); • Goods Receipt function to be undertaken at the point of supply/delivery (generally within BEMS), and appropriate training provided to staff to facilitate this; • Expand the use of CPC’s within BEMS areas specifically for low value/low risk purchases; • Support be provided to the proposed centralised reconciliation of CPC’s to dedicated QHSSP Administrative staff; • Consideration be given to reviewing and increasing the threshold for individual CPC transactions specifically for urgent/emergent situations. (Suggested that a ceiling of $5000 is more realistic than the current $2000). • Establish regular communication networking forums between BEMS and Supply Services staff Page 9 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  10. 10. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models ABBREVIATIONS AND GLOSSARY OF TERMS Attachment 1 Term Definition QHSSP Queensland Health Shared Services Partner HSPL Health Services Purchasing & Logistics BEMS Building, Engineering & Maintenance Services CPC Corporate Purchasing Card SOA’s Standing Offer Arrangements HUB A HUB in the context of the provision of supply services to QHSSP, is a centre of skill that provides a range of specialised supply support to an allocated dependency either in direct support of a District or through one or more Spokes. Functions to be performed at a Supply Services Hub could include, among others, warehousing & distribution, procurement, invoice verification, contracts management and the provision of high level policy advice to Districts. Spoke In the context of the provision of supply services to QHSSP, this is a supply section that provides local operational support to one or more Districts. Functions to be performed by a Supply Services Spoke could include, among others, support to requisitioning functions, local purchasing, maintenance of barcode processes, scanning, receipting, internal distribution, restocking of imprest areas, local advice on supply process, etc. SCMIS Supply Chain Management Integration Strategy Supply Supply/Supply Chain Management encompasses the planning and management of all activities involved in procurement and logistics management. Importantly, it also includes coordination and collaboration with suppliers, third party service providers and customers. Procurement Procurement is defined as the entire process associated with the acquisition goods and services required by an organisation; including, the functions of planning, specification development, supplier selection, contract administration, disposal and other related functions. Logistics Logistic/Logistics Management encompasses the planning, implementation and control of the forward and reverse flow and storage of goods and services between point of origin and point of consumption. Typically includes inbound and outbound transportation management, warehousing, order fillment, inventory management, supply/demand planning and management of third party logistics. Logistics management is a large and integral part of supply chain management. Page 10 of 17 “PRINTED COPIES ARE UNCONTROLLED” Commercial in Confidence
  11. 11. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 QHSSP SUPPLY ROLE ACCOUNTABILITY SNAPSHOT (Excludes Supply processes for Pharmaceuticals, Dental Stores, QHPSS, BTS) Supply Area Health Corporate District QHSSP (Supply) Function Service Policy and • Manage and strategic • Develop and • Plan and manage District • Manage and operational planning of the Planning planning of the entire analyse key interfaces with the Supply QHSSP Supply function. Supply function. Supply function. • Input to the development of the strategic Supply • Develop the QH Corporate performance • Plan and manage internal function. Procurement Plan. indicators. demand for goods and • Develop internal operational Supply procedures • Develop QH Agency services. and work instructions. Purchasing Procedures. • Plan and manage District • Develop customer Supply procedures and work • Coordinate Supply systems equipment and asset instructions. planning and replacement programs, • Analyse the local market servicing Supply and implementations. including identification and its customers. • Analyse the market access to appropriate funding. • Analyse QHSSP positioning within and impact servicing the health care • Input to the development of on the local market industry. customer Supply procedures • Develop and analyse key performance • Analyse QH positioning and work instructions. indicators. within and impact on the • Monitor key performance • Manage Procurement Delegations for QHSSP market indicators. staff. • Develop and analyse key • Manage Procurement • Policy interpretation and advice to Districts on performance indicators. Delegations for District staff. policies and practices impacting the Supply • Maintain the QH Schedule • Advice of the impact of the function. of Procurement Supply function on District • Manager Purchasing Cards allocated to Supply Delegations. practices. staff; including appointment of Area Card • Policy interpretation and • Manager Purchasing Cards Administrator. advice to QH staff on allocated to District staff; • Develop and implement strategies to ensure policies and procedures including appointment of Area probity within procurement processes. impacting the Supply Card Administrator. function. • Implementation of processes • Plan and manager that ensure probity within Corporate Purchasing Card procurement processes. policy and processes; including appointment of the Corporate Card Coordinator • Develop and implement strategies to ensure probity within procurement processes. Page 11 of 17
  12. 12. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service Systems • Manage and strategic • Maintain FAMMIS access for • Input to the development of Supply systems. Management planning of Corporate appropriate cost centre staff. • Provide reports for customers that are systems supporting the • Access basic Supply reports reasonably beyond the capability of the District Supply function. and data (eg backorder reports, to run (eg local catalogue, downloads of urgent • Manage the enhancement barcode scanning reports, requests etc) of Supply applications. pricing, blocked materials etc • Establish and maintain Plant catalogues. • Plan and implement replacement of hardware supporting Supply processes (eg barcode scanners) • Plan and implement replacement of Supply applications. • Establish and maintain Supply catalogues. Requisitioning • Raise electronic purchase • Provide advice of catalogue and material requisitions. changes. • Raise manual requisitions. • Produce a stock catalogue. • Raise “Urgent” requisitions. • Print and replace barcode labels. • Release electronic requisitions. • Undertake barcode scanning. • Ensure appropriate Authorised Expenditure Approval Officer (Scanning and label replacement may be delegations are exercised for undertaken by District staff.) manual requisitions. • Access catalogue data. • Specify the requirement. • Identification of potential supplier(s) and supplier’s part number when requisitioning non-catalogued products. • Identification of indicative costs. • Identification of product sponsors to provide advice on consumables and equipment to be used within the District. • Maintain staff skills in electronic Page 12 of 17
  13. 13. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service requisitioning processes. • Requisition products on SOA or seek appropriate exemption. • Identification of alternative products to meet specific needs. Purchasing • Purchase by petty cash. • Purchase a designated range of stock and non- • Purchase by Corporate stock products (including assets and Purchasing Card. equipment) for an allocated dependency. • Provide input to the evaluation • Determine the purchasing method to be used of goods and services. (Quotations, Purchasing Card, sole supplier, tender etc). • Determine sources of Supply. • Obtain quotations. • Evaluate vendors’ bids with appropriate District input. • Negotiate with vendors where necessary. • Obtain any necessary customer signoff. • Exercise the Procurement Delegation. • Prepare and issue the purchase order. • Expedite deliveries. • Archive and safe custody of purchasing documentation in accordance with statutory requirements. Inventory Establish MSDA arrangements, • Negotiate service levels • Maintain Plant material master data and Management as required, for Districts without required. information records. a Warehouse facility • Provide feedback on quality/fit • Provide advice on catalogue and material for purpose of inventory lines. changes. • Advise SOA items to be used in • Plan materials requirements. the District. • Determine materials to be held in stock • Return goods for credit in (Stocking parameters include criticality, cost accordance with agreed and lead-time) guidelines. • Undertake forecasting. • Manage extended storage • Set inventory levels in main store (Max, min locations (i.e. stock held, and reorder points) replenishment, write-offs, • Coordinate return of goods in accordance with stocktakes etc) agreed guidelines. Page 13 of 17
  14. 14. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service • Undertake progressive or annual stocktakes. • Report end FY stock holdings. • Prepare write-offs for District Manager’s approval. • Assist in the establishment and ongoing operation of MSDA arrangements with Prime Vendors • Fund the Inventory Account. • Fund initial stockholding for new lines. • Approve write-off of inventory. (These accountabilities currently sit with the District.) Warehousing • Receive and inspect stock and non-stock. • Hold and pick stock. • Arrange acceptance and electrical testing as necessary. • Undertake stock rotation. • Maintain integrity of the stock held. • Appropriately package goods for distribution. • Coordinate physical return of goods to vendors. • Ensure optimum use of warehouse facilities. Distribution • Inspect and sign for receipt of • Distribute stock and non-stock consumables to goods for direct delivery of designated delivery points in accordance with items. agreed schedules. • Coordinate internal District • Collect returns from cost centres for deliveries outside the Supply processing. function (i.e. mail, Xrays etc) Asset • Inspect and sign for receipt of • Create Asset Shells. Management equipment • Coordinate internal delivery of equipment. • Arrange disposal of obsolete or • Arrange acceptance and electrical testing. surplus equipment. • Coordinate BTS checks. • Allocate SAID numbers and barcode labels for assets. (Asset Shells may be created by the District or Page 14 of 17
  15. 15. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service QHSSP Finance Sections.) Contracts • Plan and manage tendering • Develop business case for • Plan and manage tendering processes for Management processes for strategically significant purchases. goods and services not covered by Corporate significant and woH goods • Development of specifications. or Statewide Services. and services. • Identification of indicative costs. • Advice on contracts administration practices • Establish woH SOAs. • Obtain necessary financial and processes. • Coordinate PSAC approvals for the purchase to • Determine the procurement process (eg RFI, processes. proceed. RFQ, staged confinement etc) • Coordinate and oversee • Establish local or multi-District SOAs. equipment replacement • Maintain a register of specifications. programs (eg District Asset • Input to the commercial aspects of the replacement programs, HTER, specification. Foundation purchases). • Review specifications prior to the tendering • Identification of key process. stakeholders. • Identify and manage risk as it relates to the • Identification of technical commercial and process aspects to the tender. sponsors. • Develop offer documentation. • Identification of potential • Identification of potential suppliers. suppliers. • Advertise the offer. • Identify and manage risk as it • Facilitate the offer evaluation process. relates to the technical aspects • Coordinate offer negotiations. of the tendering process. • Coordinate debriefing of unsuccessful offerers. • Coordinate testing and trialling. • Raise purchase orders for equipment procured • Respond to technical queries in following a Supply tender process and for relation to the offer. District equipment approved for purchased • Input to offer negotiation against the HSP&L bulk tender arrangement. processes. • Exercise the procurement delegation for the • Input to the offer evaluation purchase. process. • Develop contract management plan. • Input to debriefing of • Manage and monitor vendor performance. unsuccessful offerers. • Maintain the Contract’s register. • Input to the development of a • Archive and safe custody of offer contract management plan. documentation in accordance with statutory • Manage and monitor vendor requirements. performance and provide • Provide updates on status of contracts and feedback to QHSSP contracts equipment purchases to District coordinators. staff Input to PSAC decision- making processes as Page 15 of 17
  16. 16. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service determined by HSP&L. • Management of SMO Agreements Imprest • Manage the cost centre imprest • Housekeeping within the imprest store. Management stores. • Run backorder report prior to undertaking a • Determine products to be held. barcode scan. • Establish appropriate maximum • Scanning to replenish stock to approved levels. imprest levels for products held. • Place stock away. • Coordinate end FY imprest • Raise requests for replacement/ new barcode stock counts (if necessary). labels. • Maintain open communication • Identify surplus products for redistribution, with Supply staff to identify and return for credit or disposal. meet the needs of the imprest • Identify obsolete products requiring write off. store. • Assist with end FY stock counts. • Maintain open communication with cost centre staff to identify and meet the needs of the imprest store. (The functions identified as being performed by QHSSP may be performed by the District.) Invoice • Inspect and sign delivery • Invoice verification for all purchase orders Verification documentation/invoices for raised by Supply. goods delivery direct to cost • Process and clear GR/IR for QHSSP Supply centres. transactions. • Process General Purpose • Monitor and follow-up outstanding accounts. Vouchers through Financial • Monitor and manage PO credits. Services (Accounts Payable • Archiving and safe custody of invoices and Section). verification reports. Note: (Oversight and coordination of the GR/IR for the District BA is undertaken by QHSSP Supply and/or Finance staff.) (The functions identified as being performed by Supply are also performed by QHSSP Finance staff). Page 16 of 17
  17. 17. Commercial in Confidence Supply Chain Management Integration Strategy – Service Delivery Models Appendix 1 Supply Area Health Corporate District QHSSP (Supply) Function Service Customer • Foster cooperation and • Foster • Foster cooperation and open • Advice and support to customers in relation to Support open communication cooperation communication between local Supply operational practices and between customers and and open customers and Supply staff. arrangements. Corporate Office staff. communication • Provide a point of contact for • Limited advice and support in relation to Supply • Provision of Corporate between AHS product queries (eg Clinical applications. Purchasing Card related and Supply Products Coordinator). • Higher level management advice on Supply training. staff. • OJT training and backfilling of processes and practices. • Provision of MM DSS District staff supporting the • Survey customer’s needs and their views on training Supply function. how to meet the need. • Train staff in barcode scanning. • Provide avenues for training and development of QHSSP Supply staff. • Provide training in Supply applications and processes to District staff to supplement that provided by CorpTech and OJT. • Foster cooperation and open communication between customers and Supply staff. • Represent Supply on various District committees. Page 17 of 17

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