Project in Purchasing in Logistics Organisation

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					   HEALTH SERVICES
PURCHASING & LOGISTICS

         a Branch of
  Corporate Services Division




           July 2010
               Contact Numbers for HSPL in:

                                   Level 4 & 6
                               200 Adelaide Street
Purchasing & Logistics Business Improvement Unit (PLBIU): Tel: 3006 2810
                                                          Fax: 3006 2771

Strategic Procurement & Sourcing Unit (SPSU):                      Tel: 3006 2925
                                                                   Fax: 3006 2771

Carbon Management Unit (CMU):                                      Tel: 3006 2967
                                                                   Fax: 3006 2771

Community Services Unit (CSU):                                     Tel: 3006 2815
                                                                   Fax: 3006 2767

Health Technology Procurement Unit (HTPU):                         Tel: 3006 2812
                                                                   Fax: 3006 2766

Clinical Contract Management Unit (CCMU):                          Tel: 3006 2908
                                                                   Fax: 3006 2766

Information & Communication Technology Procurement Unit (ICTPU)
                                                          Tel: 3006 2915
                                                          Fax: 3006 2767
     Ground Floor 13-15 Bowen Bridge Rd Bowen Hills
Pathology & Scientific Services Contract Management Unit (PSSCMU)
                                                            Tel: 3166 5203
                                                            Fax: 3166 5207
Associated Services

                       831 Gympie Road - Chermside
Shared Services Initiative - Supply Chain Management Integration Strategy Project
(SCMIS)                                                                  Tel: 3170 4332
(Project sponsor – Senior Director Health Services Purchasing Logistics) Fax: 33528210




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Document Change Control History

Version     Section       Reason                                 Author       Date
Number
Draft       All           Draft document for comment             P Laing      May 2006
0.1         All           Final Draft                            P Laing      May 2006
0.2         Eco Unit      Updated information                    P Laing      May 2006
0.3         All           Update to QHEPS references &           P Laing      June 2006
                          name changes
0.4         All           Update information                     P Laing      July 2006
0.5         ICMU          Update information                     J. Jesson    August 2006
            Cataloguing   Update information
            Team
0.6         All           Update contact numbers                 J. Jesson    October 2006
0.7         All           Update all sections                    W. Bianchi   April 2007
0.8         All           Update Sections, reformat.             W. Bianchi   August 2007
0.9         All           Update all sections                    W. Bianchi   May 2008
1           Various       Update information                     W. Bianchi   July 2008
1.1         Various       New Contact details & address          W. Bianchi   September 2008
                          update
1.2         Various       Update Notes section                   J. Lahey     October 2008
1.3         Various       Update CSP description, include        J.Eldridge   November 2008
                          PSSCMU’s new address, edit pg 3
                          regarding ‘moving’ tense.
1.4         Various       Update SCMIS section and               P Laing      December 2008
                          miscellaneous information
1.5         Various       Update organisational chart, various   B. Stewart   June 2009
                          contacts and information and
                          SCMIS section
1.6         Various       Update organisational chart, various   J. Lahey     December 2009
                          contacts and information and Unit
                          sections
1.7         Various       Update to contact List, Update to      J Lahey      April 2010
                          various sections
1.8         Various       Update to contact List, Update to      R Steer      July 2010
                          various sections


Document Approval Sequence

  Status    Approval           Name                    Signature              Date
            Progress
   Draft    Director PLBIU     Peter Laing

 Sign Off   Senior Director    Bill Stewart
                                                                     Table of Contents



INTRODUCTION TO HEALTH SERVICES PURCHASING & LOGISTICS............................................................... 5

CORPORATE SERVICES DIVISION “VISION, PURPOSE, VALUES” ....................................................................... 6

CULTURE STATEMENT......................................................................................................................................................7

PURCHASING & LOGISTICS STRATEGY MAP ............................................................................................................8

HSPL INTRANET WEBSITE ...............................................................................................................................................9

HSPL BRANCH & UNIT INFORMATION.......................................................................................................................10
    LOCATION ..........................................................................................................................................................................10
    USEFUL INFORMATION.......................................................................................................................................................10
    CUSTOMER SERVICE ..........................................................................................................................................................10
    WEEKLY SOA INFORMATION ...........................................................................................................................................11
    ETHICS IN PURCHASING.....................................................................................................................................................11
HEALTH TECHNOLOGY PROCUREMENT UNIT (HTPU)........................................................................................15
    CAPITAL EQUIPMENT ........................................................................................................................................................15
    DENTAL EQUIPMENT, INSTRUMENTS & CONSUMABLES ..................................................................................................15
    OTHER SUPPLY ARRANGEMENTS ......................................................................................................................................15
CLINICAL CONTRACTS MANAGEMENT UNIT (CCMU) .........................................................................................16
    MEDICAL CONSUMABLES ..................................................................................................................................................16
    PHARMACEUTICALS, MEDICAL GASES, LAUNDRY CHEMICALS, UNIFORMS, HOSPITAL LINEN, TEMPORARY AGENCY
    NURSES, PROSTHETICS AND IV FLUIDS ............................................................................................................................17
    TRAVEL AND ACCOMMODATION .......................................................................................................................................18
    AUSTRALIA POST PARCEL SERVICE AGREEMENT ...........................................................................................................18
    CONTRACT/FAMMIS SUPPORT ........................................................................................................................................18
    QUEENSLAND HEALTH HEAD SUPPLIER AGREEMENTS (HSA) .......................................................................................19
    CURRENT HEAD SUPPLIER AGREEMENTS MANAGED BY CCMU: ...................................................................................19
STRATEGIC PROCUREMENT & SOURCING UNIT (SPSU) ......................................................................................20

PURCHASING & LOGISTICS BUSINESS IMPROVEMENT UNIT (PLBIU) ............................................................ 21
    CATALOGUING & INFORMATION MANAGEMENT .............................................................................................................22
    QUALITY MANAGEMENT PROJECT ...................................................................................................................................23
CARBON MANAGEMENT UNIT (CMU).........................................................................................................................24
    ENERGY EFFICIENCIES ......................................................................................................................................................24
    THE BENEFITS OF ENERGY PERFORMANCE CONTRACTING ............................................................................................25
    PURCHASING ENERGY .......................................................................................................................................................25
    STRATEGIC ENERGY EFFICIENCY POLICY .......................................................................................................................25
INFORMATION & COMMUNICATION TECHNOLOGY PROCUREMENT UNIT (ICTPU) ................................ 26

PATHOLOGY & SCIENTIFIC SERVICES CONTRACT MANAGEMENT UNIT (PSSCMU) ................................27

SUPPLY CHAIN MANAGEMENT INTEGRATION STRATEGY PROJECT (SCMIS) ............................................ 27

COMMUNITY SERVICES UNIT (CSU) ...........................................................................................................................29
Introduction to Health Services Purchasing & Logistics
OUR MISSION
Advancing supply chain value for money* to support health service delivery.
OUR VISION
Recognised excellence in health supply chain management.**
OUR ROLE
Health Services Purchasing & Logistics (HSPL) has 4 major roles:
     •     a contract management role to identify, implement, manage and review cross-organisation contracts
           that increase purchasing value for money for the following product categories:
                o clinical consumables and devices,
                o community health services
                o pharmaceuticals,
                o medical equipment,
                o pathology supplies,
                o information technology and services, and
                o other miscellaneous commodities of high relative spend;
     •     a business improvement leadership role to:
                o identify, plan, implement and measure outputs and improvements to the organisation’s
                    purchasing and logistics business processes and systems; and
                o ensure the effective delivery of training and development opportunities and qualifications for
                    staff involved in the Queensland Health (QH) supply chain;
     •     a corporate governance role to:
                o maintain the Corporate Purchasing Plan, Agency Purchasing Procedures and other strategic
                    procurement documents in accordance with Queensland Government and Queensland Health
                    policies and procedures;
                o consult and provide advice regarding the application of such documents; and
                o manage purchasing delegations to support controlled and best practice purchasing processes;
     •     an eco-efficiency & carbon management leadership role to identify, plan, implement and
           measure strategies to reduce energy, water usage and greenhouse gas emissions, whilst maintaining the
           existing functionality and continuity of patient care.

A 5 Year Strategic Plan for Purchasing and Logistics has been developed to guide the broader reform agenda for
Queensland Health. In addition, we have a strategy map (see over) which provides a visual representation of our
strategic objectives and how they align with Queensland Health’s eight strategic directions:
•          Promoting a problem solving approach to reform of Qld Health;
•          Building the next generation of health workers, ideas and health services;
•          Working together;
•          Responding justly and fairly to need;
•          Working with communities to improve health;
•          Creating a patient focused health system;
•          Making Queensland Health a good place to work; and
•          Better manage performance of people, systems, assets and information.


Bill Stewart
Senior Director, Health Services Purchasing & Logistics
*Value for money concept includes price integrated with consideration of:
     •     contribution to the advancement of Government priorities;
     •     non-cost factors such as fitness for purpose, quality, service and support; and
     •     broader cost related factors including whole-of-life costs and transaction costs associated with acquisition, use, holding, maintenance and
           disposal.
** 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.
                                                                        Our   Values
Corporate Services Division “Vision, Purpose, Values”
                                                                        Empathy
                                                                        •   Corporate Services strategic direction and actions
          Our   Vision                                                      reflect and demonstrate a clear understanding of the
                                                                            needs and challenges of the organisation in providing
                    To be an organisation that…                             health services to all Queenslanders.
                  Meets internal and external Stakeholders needs.
                                                                        Innovation
                Allocates and uses resources appropriately to achieve   •   Actively and openly collate and encourage new or
                              Queensland Health goals.                      different ideas, thoughts and directions with our
                                                                            stakeholders and the broader environment.
                Strives for continual improvement to ensure quality     •   Research, develop and disseminate evidence based
                                  system processes.                         policies and procedures.
                                                                        •   Relationships and communication approaches which
            Fosters an innovative culture driven by professionalism.        are flexible and lead to appropriate solutions.

                                                                        Leadership
                                                                        •   Inherent in everyone, as we are all leaders
           Our   Purpose                                                •   Collaborative (Team) working together for the
                                                                            common good
                                    We exist to:                        •   Articulating the vision
                  Provide quality corporate governance and support      •   Accepting responsibilities
                                       services                         •   Action oriented to results
                                                                        •   Demonstrating all the above, to develop trust
                                        For:
                    Our core business (Queensland Health) and its       Professionalism
                                      customers                         •   We strive to act in all our dealings in a professional,
                                                                            proactive manner embodying ethical, consistent,
                                   In order to:                             frank and fair decision making, based on the facts.
                         Improve and support health services            •   We provide services to Queensland Health through a
                                                                            highly skilled and competent workforce and by using
                                      So that:                              a high quality Corporate Services framework,
                  Queensland Health is able to deliver efficient and        founded on continuous improvement.
                   effective health outcomes for Queenslanders.
                                                         Culture Statement




                                                  Culture Statement of
                                         Health Services Purchasing & Logistics
                                            a Branch of Corporate Services


•   To provide a safe and supportive environment which fosters self esteem, high morale, personal and professional development based
    on a co-operative team approach and supportive management influence and guidance.
•   To encourage and adopt teamwork through effective internal and external partnering and collaboration, to achieve agreed business
    results.
•   To provide a professional, high quality and responsive service to our clients by actively seeking to understand their motivation and
    business objectives.
•   To lead the design and adoption of professional work practices which reflect :
           our corporate mission and values;
           effective, democratic management who “walk the talk”;
           technically competent and effective staff knowledge of processes and systems aligned to flexible and innovative work practices
           operating within government policy;
           ethical and honest behaviour in dealings with all stakeholders through open communication and due regard to privacy and
           confidentiality.
                                                       Purchasing & Logistics Strategy Map




Health Services Purchasing & Logistics - Version 1.8                          Page 8
                                                             HSPL Intranet Website
The HSPL intranet website offers a range of resources and information to support the Purchasing & Logistics business of Queensland Health. An internet
website has also been developed for external users, including suppliers at http://www.health.qld.gov.au/hspl/




Health Services Purchasing & Logistics - Version 1.8                                   Page 9
HSPL Branch & Unit Information
Location

•   The majority of the Branch is located on Levels 4 & 6 at 200 Adelaide Street, Brisbane.
•   Pathology & Scientific Services Contract Management Unit as at 30th September 2009 is located at CaSS Line Management Building, Ground Floor, 13-15 Bowen Bridge
    Road, Brisbane.

Useful information

Reception / Customer Service          (07) 3006 2916

Facsimile                             (07) 3006 2771

Branch Management Address             Level 6, 200 Adelaide St, Brisbane Qld 4000
Postal Address                        GPO Box 48, Brisbane          Qld 4001

QHEPS intranet site            http://qheps.health.qld.gov.au/pl/home.htm

HSPL internet site             http://www.health.qld.gov.au/hspl/

Qld Government Chief Procurement Office website              http://www.qgcpo.qld.gov.au

Qld Contracts Directory (“Public Access”) website http://qcd.qgcpo.qld.gov.au/Pages/SOAListDept.aspx?Department=Queensland%20Health


Qld Health ABN Number          66 329 169 412

Customer Service

If you have any feedback we want you to tell us so we can continue to improve our services.

If you are an external client and would like to provide feedback, please contact us using the Supplier Performance Report. Please follow internet link –
QHEPS>Business Support>Purchasing Logistics>Contract Management>SOAs>Supplier Performance Report
http://qheps.health.qld.gov.au/pl/soas_tenders/report/supplier_perform.pdf

Health Services Purchasing & Logistics – Version 1.8                                        Page 10
HSPL invites all our clients to complete a short Client Survey to provide us with important feedback as to how well our services are
helping you achieve your business goals. We view our clients as a broad and varied group including clinicians, allied health staff, supply
services staff, corporate services & administrative staff, and engineers. The Client Survey is available via the HSPL website –
http://www.health.qld.gov.au/hspl/about_us/feedback.asp


Weekly SOA Information

A weekly SOA Information update is published and distributed via email and the HSPL intranet website to keep customers up to date on developments and
changes to standing offer arrangements



Ethics in Purchasing

Ethical behaviour in purchasing is a core value of HSPL. Supplier relationships are a complex issue, especially in the Government sector where it is necessary
to maintain a balance between sound commercial relationships and ethical business dealings.

The overriding principle for purchasing                                                                 activities in Queensland Health is to ensure that a
particular relationship does not preclude                                                               other competitive suppliers also maintaining a
relationship.

Procurement staff should consider the                                                                   motivation of suppliers when they offer inducements
such as gifts, sponsorships, prizes,                                                                    hospitality and entertainment. Inappropriate motives
may include efforts to avoid competition,                                                               influence procurement decisions and gain favourable
treatment.

It is a requirement that all procurement staff                                                           reject any offer of such inducements, and report such
offers to their line manager.

Staff not primarily involved in procurement                                                        must consider the Queensland Health Code of
Conduct and if they subsequently accept the inducement they must record the details in the appropriate gift register. If those staff become involved in
procurement at a later time they must declare any conflicts of interest.
Health Services Purchasing & Logistics - Version 1.8                                    Page 11
Inducements may include:
    •   Gifts & Competition Prizes (e.g. alcohol, sporting goods, apparel, stationery items, technology items)
    •   Entertainment (e.g. sporting and cultural events, including travel, meals)
    •   Conferences / Meetings / Trade Shows / Product Launches / In-service & Development Workshops: (e.g. travel, accommodation, registration fees)
    •   Loyalty Programs (e.g. bonus stock, cash, supplier sponsored staff functions)
A program of purchasing related Ethics training will be available to all members of Product Advisory Committees, procurement staff, clinicians and
Queensland Health management. This will ensure that all staff with any involvement in purchasing are aware of their ethical obligations and that the purchasing
process is beyond reproach.

Queensland Government Chief Procurement Office has also published a Guide on “Ethics, Probity and Accountability in Procurement” and is available
electronically at
http://www.qgcpo.qld.gov.au/02_policy/better_purch.htm




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Health Technology Procurement Unit (HTPU)
Capital Equipment

Capital Equipment purchasing is managed by the Bulk Purchase Unit.

The Bulk Purchase Unit is responsible for the purchasing process and
mandates the appropriate procurement methodology for capital equipment
purchases primarily funded through the Health Technology Capital Program.

To obtain a copy of the Bulk Purchase Product Categories and Arrangements or to enquire on any other
matters, the unit can be contacted on the following email – bulk_purchase@health.qld.gov.au.

Dental Equipment, Instruments & Consumables

There are fourteen (14) Dental Standing Offer Arrangements.

These arrangements are reviewed by the Dental Products Advisory Committee (DPAC). The
membership consists of:

Dr Mark Brown                Sunshine Coast Health Service District
Dr Mike Charles              Director of Oral Health
                             Fraser Coast Health Service District
Dr Ian Swinton               Director – Rural/Remote Service
                             Oral Health
Mr David Walsh               Fraser Coast
Dr David Sylow               Gold Coast Health Service District
Mr Ron Mitchell              Townsville Health Service District
Mr Allan Jarman              BTS Central
Mr Graham Cook               Director Central Pharmacy

The primary role of the DPAC is to provide clinical advice to Health Services Purchasing and Logistics
in the establishment and maintenance of Dental Standing Offer Arrangements. This includes
coordinating product trials, evaluating offers received and making recommendations which will provide
the “Best Ultimate Value to Queensland Health”.

This committee meets every three months and meetings are chaired by HSPL.


Other Supply Arrangements

The Health Technology Procurement Unit also manages supply arrangements for clinical forms, contrast
media, envelopes, frozen foods, spectacles & thickened fluids.

Requests for establishment of new whole of Queensland Health supply arrangements for other products
and services are given favourable consideration where HSPL’s objectives of total cost reduction and
enhanced standardisation will be achieved.




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Clinical Contracts Management Unit (CCMU)




Medical Consumables
There are 31 Medical Consumables Standing Offer Arrangements. These arrangements are managed by
the unit and coordinated by the Clinical Products Advisors (David Bristow & Sian Walker).

General information regarding these arrangements is available via the internet on the Queensland
Government Chief Procurement Office website (Queensland Contracts Directory) –
http://qcd.qgcpo.qld.gov.au/Pages/SOAListDept.aspx?Department=Queensland%20Health
For Queensland Health staff the Standing Offer Arrangement information can be obtained via the HSPL
intranet site on QHEPS.

The Clinical Products Advisory Committee (CPAC) provides clinical advice to Health Services
Purchasing and Logistics in the establishment and maintenance of Clinical Standing Offer
Arrangements. This includes coordinating product trials/assessments, evaluation of offers received and
making recommendations which will provide the “Best Ultimate Value to Queensland Health” under
Standing Offer Arrangements to which the committee is giving consideration.

The CPAC is responsible for:
     ensuring compliance with the Queensland Health Purchasing Policy & Procedures and maintaining
     sufficient data to justify and substantiate decisions taken by the committee;
     reviewing and commenting on the appropriateness of specification, conditions and evaluation
     criteria;
     evaluating all offers fairly and equitably against the specified evaluation criteria;
     obtaining additional information if required;
     recommending those firms which should be included on the particular SOA based on the CPAC
     process; and
     assisting in the monitoring of performance and effectiveness of the SOA.

The membership of the CPAC consists of:
Name            Position Held                HSD                                Email                             Phone No       Fax No
Neeraj Anuj     Biomedical Tech Services     BTS                                neeraj_anuj@health.qld.gov.au     07 3406 8042   07 3406 8097


Debra Tracey    A/Nurse Unit Manager,        Cairns & Hinterland                debra_tracey@health.qld.gov.au    07 4050 6132   07 4050 6689
                ICU

Dale Keen       NurseUnitManager CSSD        Central Qld Rockhampton            dale_keen@health.qld.gov.au       07 4920 6733   07 4920 6533
                & Clinical Product Advisor

Carolyn Pegg    Nurse Manager Clinical       Children’s Health Services         carolyn_pegg@health.qld.gov.au    07 3636 1485   07 3636 9282
                Resources
                                             Royal Children’s
Dianne Pelin    Principal Project Officer    CHRISP (Centre for Health          di_pelin@health.qld.gov.au        07 3328 9764   07 3328 9769
                                             Related Infection Surveillance &
                                             Prevention)
Joan Shepherd   Nurse Manager, Clinical      Darling Downs West Moreton -       joan_shepherd@health.qld.gov.au   07 4616 6323   07 4616 6557
                Products                     Toowoomba

Helen Tracey    Nurse Manager,               Gold Coast                         helen_tracey@health.qld.gov.au    07 5519 8632   07 5519 8999
                Equipment & Resources



Health Services Purchasing & Logistics - Version 1.8                                                                  Page 16
Vacant           Vacant                    Mt Isa                           Vacant                                  Vacant          Vacant
Robyn Coates     Nurse Manager,            Metro North Prince Charles       robyn_coates@health.qld.gov.au          07 3139 6581    07 3139 4439
                 Product Resources
Jacque Dorante   Nurse Manager Equipment   Metro North                      jacque_dorante@health.qld.gov.au        07 3883 7807    03 3883 7909
                 & Product Resources
                                           Redcliffe & Caboolture
Vikki Enright    Nurse Manager Clinical    Metro North – Royal Brisbane &   vikki_enright@health.qld.gov.au         07       3636   07 3636 7589
                 Resources                 Women’s Hospital                                                         00497

Carol Morrison   Nurse Manager, Clinical   Metro South- Princess            carol_morrison@health.qld.gov.au        07 3240 2978    07 3240 6383
                 Product Co-ordinator      Alexandra Hospital

Vacant           Vacant                    Sunshine Coast Wide Bay -        Vacant                                  Vacant          Vacant
                                           Bundaberg
Marilyn Jensen   Nurse Manager, Clinical   Sunshine Coast Wide Bay,         marilyn_jensen@health.qld.gov.au        07 4122 8375    07 4122 8376
                                           Fraser Coast (Harvey Bay &
                 Resources                 Maryborough)
Vacant           Vacant                    Sunshine Coast Wide Bay –        Vacant                                  Vacant          Vacant
                                           (Southern Cluster)
Helena Kemp      A/Product Resources       Townsville                       helena_kemp@health.qld.gov.au           07 4796 3628    07 4796 1151
                 Adviser

Ricki Davis      Nurse Manager, Clinical   QHSSP, Supply Services,          erica_davis@health.qld.gov.au           07 3120 8418    07 3120 8490
                 Resources                 Richlands DC

Christine        Nurse Manger, Clinical    QHSSP, Supply Services,          christine_chamberlain@health.qld.gov.   07 4753 3593    07 4753 3515
Chamberlain      Resources                 Townsville DC                    au




The CPAC represents the interests of all Queensland Health facilities. So, don’t hesitate to make contact
with them if you wish to raise clinical issues concerning any of our medical arrangements. The CPAC
meetings are held on the second Thursday of every month. Any issues can be raised for discussion at
these meetings.

If you have any enquiries on any of our arrangements, please make contact with us. We are more than
happy to help you.
Pharmaceuticals, Medical Gases, Laundry Chemicals, Uniforms, Hospital Linen, Temporary
Agency Nurses, Prosthetics and IV Fluids
There is a total of 31 Standing Offer Arrangements which fall into the above categories. These are
managed by the unit and coordinated by Principal Contracts Officers (Sharyn Waldock and Aaron
Traves). There are various committees which oversee the review of these arrangements.

General information regarding these arrangements is available via the internet on the Queensland
Government Chief Procurement Office              website (Queensland Contracts Directory) –
http://qcd.qgcpo.qld.gov.au/Pages/SOAListDept.aspx?Department=Queensland%20Health


For Queensland Health staff the Standing Offer Arrangement information can be obtained via the HSPL
intranet site on QHEPS.


Pharmaceutical SOA’s: These arrangements are co-ordinated by HSPL in conjunction with the
Director of Pharmacy, Central Pharmacy (Graham Cook) and Adviser in Pharmacy, Pharmaceutical
Advisory Services (Andrew Petrie). The Queensland Health Medicines Advisory Committee

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(QHMAC) and other expert clinical personnel are consulted if and when required for evaluation of
specialised items, e.g.
   • Nutritional Products
   • Cytotoxic Premix
   • A number of complex pharmaceutical items included in the Anaesthetics, Cardiovascular and
        Central Nervous System arrangements.

Other Arrangements mentioned above: These are reviewed by various Product Advisory Committees
(PAC’s). District Managers are requested to nominate suitable representatives to participate on these
committees.

Membership includes clinical, technical and administrative personnel from wide geographical locations
around the State. They bring a plethora of knowledge and expertise to assist in the establishment of
arrangements to meet the broad range of functional and clinical requirements of Queensland Health
facilities.

HSPL also co-ordinates scientific and clinical trialling for a number of the items included in these
arrangements. Examples of these include –

    •   Scientific testing carried out by Queensland Health Scientific Services for the Laundry
        Chemicals Arrangement
    •   Laundry testing for the Hospital Linen and Uniform Arrangements - Metropolitan Linen Service,
        Princess Alexandra Hospital campus and Wide Bay Group Linen Service, Maryborough.
    •   Assessment by Biomedical Technical Services (BTS) of items tendered against the arrangement
        to ensure compliance with Australian and other product related standards.

Travel and Accommodation

HSPL is responsible for administrating and coordinating Queensland
Health’s Travel and Accommodation contractual requirements. Current
responsibilities include:

    •   Liaising with Queensland Government Chief Procurement
        Officer on Whole-of-Government travel issues
    •   Coordination and management of travel and accommodation related complaints/issues for
        Queensland Health
    •   Establishment and management of Queensland Health’s Preferred Accommodation Venues
    •   Custodian role for Queensland Health’s Travel Management System (‘Travel Manager”)
        including the management of the system management service agreement.

The Manager Strategic Contracts, Darren Clarke, takes a lead role for travel and accommodation on
behalf of HSPL.

Australia Post Parcel Service Agreement
HSPL manages the agreement with Australia Post for parcel deliveries. This agreement provides
significant discounts for all Queensland Health facilities for parcel deliveries made with Australia Post.
This agreement is managed by the Manager Strategic Contracts, Darren Clarke.

Contract/FAMMIS Support
This position has three key service areas as follows:



Health Services Purchasing & Logistics - Version 1.8                                       Page 18
1)       Provides support to the Contract Managers of HSPL in the analysis of Queensland Health’s
         purchasing activities (including maintaining SOA leakage data on all SOA’s;
2)       To maintain details of SOA’s in the Finance & Materials Management Information System
         (FAMMIS); and
3)       To assist Contract Managers of HSPL in the collection and verification of rebate payments from
         SOA suppliers.
Queensland Health Head Supplier Agreements (HSA)
Overview
Queensland Health has significant expenditure on goods and services that are currently not covered by
any formal agreements. There are undoubtedly opportunities for Queensland Health to make further cost
savings by better managing this uncontracted business. While it may not be practical to establish formal
procurement contracts for all this expenditure, HSPL along with Supply Services are constantly
exploring options to better manage this expenditure. One strategy currently being explored is to
negotiate direct agreements with our suppliers who Queensland Health have a large expenditure with.

With this strategy in mind, CCMU is in the process of establishing “Head Supplier Agreements” (HSA)
with our major suppliers. Initially HSPL is targeting the top fifteen (15) clinical product suppliers to
establish a HSA. HSPL has two (2) broad objectives in establishing HSAs within Queensland Health.
These objectives are:

     1. Standardise and improve pricing, where possible, by establishing a mechanism to manage
        pricing for non-contracted (non SOA) products.
     2. Establish a single rebating arrangement based on total sales with the particular company to
        enable Qld Health to benefit from existing and future business growth.

Although each HSA will be subject to an individual negotiation process with each supplier, the broad
features of a HSA will include:

     •The HSA will run for a 5 year period and be reviewed annually.
     •Unlike Standing Offer Arrangements (SOA), the use of a HSA is not mandatory. The existence
      of a HSA does not negate the need to apply normal procurement processes. eg: quotations,
      tendering etc for higher value requirements.
   • Pricing under the HSA will be negotiated based on existing business volumes and be evaluated
      against current prices paid in the FAMMIS system.
   • Prices negotiated will be firm until each annual review.
   • Products on the HSA are not clinically assessed or evaluated for “value-for money” compared to
      alternative brands. The agreement is primarily an instrument used to obtain standardised pricing
      for those non-SOA products already in use throughout Qld Health
   • With HSA suppliers, a single rebating agreement at a company to company level will be
      considered. HSA suppliers will be exempted from existing individual rebating agreements if
      their overall rebating agreement is evaluated to be financially superior for Queensland Health.
      Contract Managers of individual procurement arrangements affected by this HSA process will be
      consulted before any decisions are made.
   • The HSA establishes customised trading terms and conditions with each major supplier.
      However, these conditions will be consistent with Qld Health’s General Conditions of Contract.
Current Head Supplier Agreements managed by CCMU:

Supplier Name                                          FAMMIS Outline Agreement Number
Carefusion Australia 200 P/L                           4600001811
Carefusion Australia 316 P/L                           4600001812




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Strategic Procurement & Sourcing Unit (SPSU)
The Strategic Procurement and Sourcing Unit (SPSU) was established to lead the development and
ongoing enhancement of Queensland Health’s overall procurement plans, strategies, policy and
procedures framework and broad sourcing strategies, ensuring they are aligned and contribute to
achieving Queensland Health’s strategic directions and service delivery initiatives.

SPSU is to ensure key complex, strategic procurement initiatives
successfully satisfy the planned outcomes and are undertaken with
state of the art procurement strategies. SPSU is responsible for
creating and delivering procurement development strategies for
Queensland Health’s procurement professionals and associated staff,
enabling them to maximize procurement value in a risk managed and
client oriented context.

Through liaison and consultation, SPSU directs the development and
maintenance of effective relationships with Queensland Health’s
policy and service delivery clients to ensure procurement and sourcing
plans, policies and strategies reflect the organisation’s planned and changing needs.

SPSU provides strategic level procurement consultancy and counselling services to executive and
clients, agencies, suppliers and industry representatives at an executive level.




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Purchasing & Logistics Business Improvement Unit (PLBIU)

The Purchasing and Logistics Business Improvement Unit has the following objectives –
•   Coordinate the continuous review and improvement of purchasing and logistics business processes
    across Queensland Health;
•   Engage in continuous learning and research into leading edge supply chain processes and
    technologies, and the legal and government framework in which they operate;
•   Coordinate the development of available systems, technologies and data to maximise the efficiency
    of purchasing and logistics business processes;
•   Coordinate the ongoing performance measurement and benchmarking of Queensland Health’s
    purchasing and logistics business processes; and
•   Coordinate improved communication, consultation and liaison, amongst the Purchasing & Logistics
    Network within Queensland Health, and externally with suppliers and supply chain management
    professionals from the public and private sectors.

    and the following expected outcomes:

•   Leading practice purchasing and logistics business processes are consistently implemented across
    Queensland Health;
•   HSPL staff have a sound understanding of leading edge supply chain processes and technologies,
    and the legal and government frameworks in which they operate;
•   Systems and technologies are appropriately utilised to maximise the efficiency of purchasing and
    logistics processes and maintain alignment with the business directions of Queensland Health;
•   Optimal quality master data is maintained to support the purchasing and logistics business processes
    and systems;
•   The efficiency of purchasing and logistics business processes is regularly monitored through the
    analysis of key performance indicators and benchmarking against leading practice organisations; and
•   Effective internal and external communication networks are maintained to ensure the alignment of
    services with stakeholder needs.

Achievements


PLBIU has progressed all objectives and outcomes through reform and business improvement in four
key areas:
•   Contract Management
•   Information Management
•   e-Procurement / Systems Improvement
•   Business Process / System Improvement
The extensive set of PLBIU achievements has broadly enabled the following:
1. Significant progress in implementing the 5 Year Strategic Plan for Purchasing & Logistics
2. Queensland Health to be well positioned to maximise gains through the implementation of the new
   SAP (FAMMIS replacement) system
3. HSPL to be able to carry out the role of corporate purchaser of purchasing & logistics services
4. An established base for further and ongoing reform and improvement
5. Queensland Health to be in a lead position for purchasing & logistics for national reforms through
   the National E-Health Transition Authority (NEHTA)




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Challenges
As well as building on the initiatives already underway, the following business improvement
opportunities will be addressed by PLBIU –
•   Provide business sponsorship for the implementation of the FAMMIS replacement system in close
    consultation with the Queensland Health Enterprise Solution Transition (QHEST) Team and
    Queensland Health Shared Services Provider (QHSSP)
•   Development of a suitable bar coding replacement solution to support purchasing and logistics
    business requirements, including imprest management functionality
•   Implementation of Radio Frequency Identification (RFID) technology to further streamline
    inventory management and purchasing business processes
•   Development of interfaces with clinical support systems, eg. Operating Room Management
    Information System (ORMIS), Pharmacy systems
•   Continued support for national Health supply chain improvement through the NEHTA endorsed
    National Product Catalogue (NPC) and other related initiatives
•   Corporate Catalogue development, including implementation of UNSPSC coding, unique product
    identifiers and Therapeutic Goods Administration (TGA) data
•   Procurement data synchronisation with key suppliers and increased uptake of e-Procurement
•   Implementation and refinement of standard business processes and a training and development
    program for purchasing and logistics
•   Support for the Supply Chain Management Integration Strategy Project, in particular the purchasing
    consolidation, warehouse management and technology aspects of the project
•   Implementation of electronic contract lifecycle management and related tendering systems,
    e.g. TenderMAX.
•   Development of state-wide performance measures and executive “dashboard” reporting for the
    Queensland Health purchasing and logistics network (the Materials Management module of the
    Decision Support System will be used to enable user-friendly access to these performance reports)
•   Benchmarking of purchasing and logistics performance both internally and with external
    organisations
•   Implementation of a quality management framework for HSPL and for purchasing and logistics
    more broadly

Cataloguing & Information Management

Cataloguing and Information Management is an integral part of PLBIU and is focussed on the quality
management of FAMMIS material master data, including related outline agreements (SOA’s). The
major priority of the team has been the review of the corporate catalogue.

This review ensures that we –
   • identify and eliminate duplicate / multiple material masters and associated records
   • standardise product descriptions and units of measure
   • create outline agreements for reviewed product groups / SOA’s
   • incorporate colloquial cross references / aliases in the system to aid product searching
   • update system records on behalf of users via electronic data uploads; and
   • publish details of changes / additions on the HSPL intranet website

Other tasks and roles undertaken by the team include –
    •   add new items to the corporate catalogue in response to user requests / project requirements

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    •   provide input to the contracting process
             o assist with specification development / review
             o analysis on potential item inclusions/deletions
    •   liaise with / provide advice to users on cataloguing matters
    •   analysis of purchasing & usage data to identify potential for addition/deletions to SOA’s and
        preparation of related business cases

Future system operational developments include -
    •   develop product classification codes for United Nations Standard Products & Services Code
        (UNSPSC) (medical/surgical products in particular)
    •   data preparation for system interfaces, e.g. ORMIS
    •   data preparation/synchronisation for e-Procurement
    •   implementation of GS1net based National Product Catalogue (NPC) and incorporation of unique
        product of identifiers into FAMMIS

Quality Management Project
The implementation of a Quality Management System (QMS) for HSPL and, as a progression, to
expand the influence of its applications to Queensland Health Purchasing and Logistics commenced in
January 2007.

The principal premise is to introduce the concept of continuous improvement to HSPL and how it
conducts business with its clients and vendors. The ultimate objective is to obtain accreditation to the
Australian/New Zealand Standard for Quality Management Systems ISO 9001:2000.

The Project is managed and co-ordinated by Michael Broadbent.




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Carbon Management Unit (CMU)
The CMU is dedicated to saving energy and water, and reducing greenhouse gas emissions across
Queensland Health facilities. Working with Queensland Health staff and external contractors, the Unit
helps to develop:
    • electricity
    • gas; and
    • water management strategies;
that reduce energy usage, water usage and greenhouse gases while providing districts with reduced
utility usage.

Queensland Health – supporting ecological sustainability
The work of the Queensland Health CMU supports the Queensland Government’s priorities -
   • Protecting the environment for a sustainable future;
   • Growing a diverse economy and creating jobs;
   • Delivering responsive government
   • and the Government Energy Management Strategy

Through the CMU the department is committed to:
   • establishing a clear, strategic direction for energy management across all Queensland Health
      facilities
   • promoting smarter initiatives for managing energy across Queensland Health
   • ensuring a consistent co-ordinated approach to energy management
   • reducing overall costs to Queensland Health and the community due to efficiencies in energy
      and water management
   • forming part of a broader environmental governance within Queensland Health.

Energy Efficiencies
Queensland Health’s CMU is using Energy Performance Contracting to:
   • promote smarter conservation practices
   • ensure that existing assets operate at an optimum level of efficiency
   • progressively and cost-effectively upgrade to more ecologically sustainable levels
   • reduce greenhouse gas emissions
   • reduce energy and water usage.

To undertake Energy Performance Contracting, Queensland Health partners with an energy service
company (ESCO) to analyse the energy usage (electricity, gas and water) within a facility, and
determine ways in which usage can be reduced.

The ESCO audit will consider factors including:
   • reducing electricity usage through measures such as solar panels for heating and energy efficient
      lighting
   • reduction in water usage
   • reduction in operating costs (eg. maintenance)
   • reduction in greenhouse gas emissions
   • fuel substitution
   • co-generation
   • renewable technologies.


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The ESCO identifies a total project cost, and the guaranteed savings that will be made over a number of
years. The ESCO undertakes to do the work, liaising with district staff. Once the project is approved,
the ESCO guarantees the identified savings will be made.

The District obtains a Queensland Health post-budget adjustment to pay for the total project cost. Each
year, the guaranteed savings are used to pay back the post-budget adjustment. This usually occurs over
about five years. There is no actual cost to the district. After the post-budget adjustment has been paid
back, the district keeps the savings and may use the money for other projects.
The benefits of Energy Performance Contracting
    •   Reduction in energy usage
    •   Reduction in energy costs
    •   Reduction in greenhouse gases
    •   Contributes to ecological sustainability
    •   Savings for districts, which can be used for other projects
    •   Optimised efficient use of assets
    •   Cost-effective upgrading of facilities
    •   Reduction in facility operating costs
    •   Support for Queensland Government priority, ‘Valuing the Environment’
    •   Support for Government Energy Management Strategy
    •   Diligent management of government assets.

Purchasing Energy
The CMU is also involved in saving the department money through its energy purchasing practices. It
aggregates the purchase of energy for Queensland Health to obtain competitive pricing on the
contestable market, and analyses the tariffs on franchise sites to identify the best tariffs.

Strategic Energy Efficiency Policy

Develop, review and maintain Strategic Energy Management plans to meet reduction targets and time
frames for Queensland Health.




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Information & Communication Technology Procurement Unit
(ICTPU)
ICTPU’s primary function is the acquisition of strategic Information and Communication Technology
(ICT) goods and services. This also includes establishing standing offer arrangements and preferred
supplier arrangements.

ICTPU is able to undertake, assist or provide advice on all aspects of the ICT procurement process,
including:
    • Market research and analysis;
    • Developing request for offer (RFO) and request for information (RFI) documentation
       (sometimes referred to as tender specification);
    • Industry Briefings;
    • Tender advertising;
    • Managing the RFO/RFI process;
    • Completeness and compliance checks of offer
       responses;
    • Evaluation of offers;
    • Post offer and contract negotiations;
    • Drafting of Government Information Technology Contracting (GITC) Customer Contracts as
       well as standard services agreements;
    • Contract administration and contract management; and
    • Contract termination.

The Queensland Government’s policies and procedures can be complex for significant ICT purchases.
Senior Officers from the Unit can act as key resources for project teams to ensure that client and
supplier expectations are met.

Whilst a significant proportion of ICTPU’s services are provided to the Information Division, their
services are available to all of Queensland Health.

The Unit also supports HSPL in the strategic procurement planning process and in developing and
reviewing policies and procedures to ensure compliance with the Queensland Government’s Information
Standard 13 for ICT Procurement.

From time to time, ICTPU also represents Queensland Health on inter-departmental
committees and working groups related to ICT procurement and GITC.




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Pathology & Scientific Services Contract Management Unit
(PSSCMU)
The PSSCMU is responsible for the establishment and ongoing management of all agreements and
contracts for the supply of goods and services for Pathology Queensland and Queensland Health
Forensic & Scientific Services. This includes the provision of tendering services for the procurement of
laboratory instrumentation, significant laboratory consumables and for the provision of specimen
transport/freight services.

The Unit provides contract management services for the provision of service maintenance to the larger
instrument platforms. Monitoring of supplier performance, setting of service standards and the regular
survey of clients form the basis of this service. The Unit is supported in this role by QH Biomedical
Technology Services (BTS), who also provide a high level of “in-house’ instrument servicing.

The Unit is responsible for the management of the Health Technology Capital Plan on behalf of
Pathology Queensland, Queensland Health Forensic & Scientific Services and BTS and has a role in the
planning for asset replacement and capital investment within the organisation.

Supply Chain Management Integration Strategy Project
(SCMIS)
A 2005 review of Queensland Health’s (QH) warehousing and distribution activities recommended a
move towards the adoption of an end to end supply chain management approach to the delivery of
services. A was subsequently established to address these recommendations and broader reform of the
Supply function. The team is based at the QHSSP Service Centre at the Chermside Galleria.

Warehousing & Distribution
A key project deliverable includes consolidation of the physical distribution (or warehousing) function
into two strategically sited Distribution Centres (DCs); located in SE Queensland and Townsville
supported by a secondary warehouse facility in Cairns. These DCs will significantly reduce or eliminate
the need to maintain around 40 intermediary warehouses and inventory storage sites across the State.

While the existing DC in Cairns has been refurbished and capacity increased, the facilities in Townsville
and SE Qld were not capable of supporting the expanded role and activities; particularly, over the 15 –
20 planning horizon recommended by the 2005 Review.

In Townsville, Supply Services (North Qld) relocated to a leased 4,400m2 DC and commenced
delivering services in February 2008. Implementation is underway for the DC to extend procurement,
warehousing and distribution services to Mackay and Mt Isa by end 2010. When completed, the
Townsville DC will provide supply support to 20 hospitals, several nursing homes and health clinics and
a range of community based health services spread over a large geographical area in North Queensland.

QH has also entered into a 10 year lease, with two options each of 5 years, for a 12,700 m2 South East
Queensland Distribution Centre (DC) at Richlands.

The first facility to be relocated to the DC was Supply Services (Newmarket), which supports, among
others, the Herston Hospitals Complex and Redlands Hospital. This relocation occurred in November
2009. Services will be extended to PAH and West Moreton in 2010.




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Over the next 3 - 4 years, the DC will assume responsibility for the provision of warehousing and
distribution services to Districts from the Gold Coast to Rockhampton and west of the Great Divide.

By September 2010, QH Central Pharmacy, which is currently located at Newmarket, will also relocate
to Richlands.

Transport Operations
A further key deliverable for the SCMIS Project is a wide ranging review of inbound and outbound
transport operations. Broadly, the review has identified opportunities for transport benefits in three key
areas:
1.    Modal Change - the shift from the relatively expensive overnight parcel express mode to lesser
      cost options.
2.    Leverage of Scale - the transport demand generated by QH is very significant. Aggregating this
      demand across the whole organisation will allow QH to leverage its scale advantage.
3.    Removal of process - the ability to “co-travel” consignments that currently travel independently
      will result in fewer consignment fees (basic charges) which are applied for each individual
      consignment.

The revised transport arrangements will be progressively implemented over the next 4 – 5 years.

Implementation of a North Qld Freight Arrangement is the first step in achieving the full benefits
realisation for QH and is seen as the proving ground for the entire QH freight model strategy. The NQ
arrangement was put in place in April 2010 and will provide the learning’s required to build the
competency within QH to achieve the full benefits realisation.

Structural Changes
Finally, Supply Services structure has been reviewed and services are being consolidated around six (6)
geographically positioned Supply Hubs and one Corporate & State-wide Hub. These Hubs support,
among other things, a range of procurement and contracts management functions. The Hubs are located
as follows:
    • Far North Queensland – Cairns
    • North Queensland – Townsville
    • Central Queensland – Rockhampton
    • Sunshine Coast & Wide Bay – Nambour
    • South West Queensland – Toowoomba
    • South East Queensland – Brisbane
    • Corporate & State-wide - Brisbane

A key supporting strategy in this structural
reform is the identification and development
of opportunities for Supply staff to assume
responsibility for the day to day support of
clinical imprest stores and theatre inventory.
The roll-out of improved imprest management
practices, associated with clearly delineated
roles and responsibilities between clinicians
and Supply staff, impacts several areas;
including, waste reduction, enhanced service
reliability and reduced PO’s. Most
importantly, it is releasing clinicians from an
administrative burden to focus on their core
clinical support roles and minimises the need
to train clinical staff in FAMMIS processes.

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Community Services Unit (CSU)
CSU is responsible for administering the provision of funding to non-government organisations to
support delivery of human services. CSU holds budgets on behalf of business units/policy areas who
provide advice on the services they would like to fund, in support of their specific program/policy area.
CSU then implements appropriate funding strategies based on approved funding plans.

In addition to providing funds to non-government organisations to provide
health services, CSU also implements a limited number of other
procurement processes including standing offer arrangements and a list of
pre-qualified suppliers. These processes aim to streamline access to human
services for Health Service Districts.

CSU is responsible for the management of approximately 60 budgets which
totalled approximately $120 million in 2008-09. Funding is allocated
according to program areas or identified health priorities and in accordance
with:
  • Australian and State government funding agreements such as the
      National Healthcare Agreement which allocates funds towards a range
      of health interventions such as palliative care, alcohol and drug or
      HIV/AIDS programs and services;
  • New initiatives that have been endorsed by the Queensland
      Government, such as the Queensland Indigenous Alcohol Diversion
      Program; or
  • Strategic program areas to target specific health interventions such as
      the Queensland Strategy for Chronic Disease 2005-2015.


                                               Typically, CSU acts as “Funder of Service Delivery”
                                               (Queensland Government Framework for Investment in Human
                                               Services, 2007). In this relationship, funding is provided as a
                                               contribution towards the services delivered by an organisation.

                                               This may mean that the full cost of services is not always
                                               covered, in which case the organisation is expected to
                                               complement government funding with funding from other
                                               sources such as donations, fundraising or other income.

The organisations which receive funding through CSU range from
quite sophisticated organisations through to small volunteer,
community based groups. The diversity of funded organisations and
program /priority areas reflects the complexity of the role of the
Unit.

A key priority for CSU is contributing to whole-of-government
initiatives involving the non-government, not-for-profit sector. A
number of service improvement activities are being driven by The Queensland Compact - Towards a
fairer Queensland (2008) – a document intended to guide the relationship between the Queensland
Government and the non-profit community services sector. These activities primarily aim to reduce red-
tape, support sector sustainability and ultimately improve outcomes for clients utilising services.



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Notes




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