NHS Shared Business Services An Overview for the Pharmaceuticals - PowerPoint PPT Presentation

NHS Shared Business Services An Overview for the Pharmaceuticals & Medical Devices Credit Forum 16 th February 2017 Beth Loudon Head of Supplier Engagement beth.loudon@nhs.net 07764 324807

Agenda Overview of NHS SBS – clients, services and locations NHS landscape changes Development of a Source 2 Settle Strategy Development of a Supplier Engagement Strategy How to contact us/find out more

Department of Health & Sopra Steria A unique joint venture • Original shared service centres • NHS experienced people • Financial Support • Oracle EWA • Unique 50:50 joint venture Together we • Commercial organisation have delivered • Joint governance audited savings • Customer focus of over • Best practice £350m to the • World class NHS • Management & Business Development • Service optimisation • Best practice • Offshore capability • Commercial expertise

Scope of our services Finance and Accounting • • 100% of all Commissioning organisations One of the largest Oracle Shared Service Centre platforms in the world • 70 NHS Provider organisations • Over 60,000 active Oracle users across Provider • Over £170 billion of payments each year and ISFE Procurement • Provider of over 100 framework agreements to the • Delivered £350m in Procurement savings NHS and Public Sector opportunities • 1,200 suppliers covering over 2m catalogue items • 57 NHS clients with approximately £5bn transacted annually • 621 associate members Employment Services • 131 NHS clients • Administering 250,000 pensions • Paying 390,000 NHS employees • Delivering registration authority services to over 5,800 employees • Processing 3.6 million payroll transactions each • Recruitment Services launched in 2013 year

Our teams – UK & India Integrated Delivery UK & India • Finance & Accounting • Purchase to Pay • Order to Cash • Account to Report Procurement Employment Services • Claims processing • Recruitment Information Technology • Service desk • Maintenance & support • Application development

F&A Scope of Service Financial Accounts Cash Accounts Accounting Payable Management VAT Services Receivable  Customer Support  Year-end Workshops Desk  Monthly Bank  Compliance with  Validation of New  Advise of Non-  Invoice Scanning Control Account HMRC Regulations Customer Accounts receipt of Interface Reconciliation Pack  eInvoicing  Maintenance of  Identify Credit write- Files  Year-end Cash Client VAT data  Invoice PO Matching off Reasons  Balance Sheet Balances  Front-line Support for  Query Resolution  Passive Approval of  Accruals  Control Petty Cash Client Health Economy  Debt Management Low Value Invoices  Journals Organisations  Coordinate  Duplicate Invoice  Cheque Banking  Additional VAT Movement of SLA  Monthly Client Calls Checking  Customer Payment Payments Consultancy Service  Chart of Accounts  Non-PO Invoice (additional charge)  Cash-flow Forecasts Processing Maintenance Processing  Production of  Production of Sales  Make Non Purchase  Sub-Ledge Close  Invoice Payment monthly VAT returns Invoice & despatch Ledger Payments  Accounting  Invoice Processing  Setting up New  Daily Bank Timetable  Post room Services Receivable Items Reconciliations  Period End Close F&A Services

NHS SBS Procurement Services Acute MH Trusts Community CCGs CSUs NHS England ALBS Wider Public Trusts Trusts Sector       Operational Procurement         Provision of Framework Agreements   Integrated Procurement Partnering      Strategic Sourcing Services Project        Support

Driving process improvements for our clients - The Lord Carter Report Recommendations 5 & 7 5 – “All Trusts report their procurement information monthly to NHS Improvement to create a NHS Purchasing Price Index commencing April 2016, collaborate with other trusts and NHS Supply Chain with immediate effect, and commit to the Department of Health’s NHS Procurement Transformation Programme (PTP), so that there is an increase in transparency and a reduction of at least 10% in non- pay costs is delivered across the NHS by April 2018” a) Develop PTP plans, nominate a Director b) Providing pricing information for the price purchasing index c) Prioritise role of procurement on ensuring effective control and compliance (includes GS1 adoption) 80% spend on catalogue, 90% on PO, 90% on contract – by Sept 17 d) e) Accelerate collaboration f) Adoption of NHS Standards of Procurement 7 - “All Trusts should rationalise their corporate and administration functions to ensure their costs do not exceed 7% of their income by April 2018 and 6% of their income by 2020 (or have plans in place for shared service consolidation with, or outsourcing to, other providers by January 2017) so that resources are used in a cost effective manner.” a) Test existing services against shared services b) Submit plan to NHS Improvement if costs are above this for HR, Finance, IM&T and Procurement

Challenges for the NHS in meeting new Targets NHS Trusts NHS Suppliers • • Finance and Procurement Increasing pressure to deliver systems and policies have cash savings for the NHS • evolved in a fragmented way No single NHS marketplace • • No capital or revenue for Increasing costs to service the investment in systems NHS • A complex NHS digital roadmap – • A complex mix of stakeholders – single trust vs STP users, procurement, finance • • Lack of implementation resource No easy way to introduce for any system changes innovation into the NHS • • Limited spend data for single Poor payment record and getting organisations and alliances/STPs worse! • etc. No visibility on invoices and • Increasing demand from NHSI to payments • evidence how savings will be Multiple ways for a customer to made order

How NHS SBS plans to meet the challenge – The Source 2 Settle vision “To deliver cash savings and back office efficiencies to the NHS through a continuously improving NHS Shared source to settle solution which is free to access and use for the NHS, provides tangible value to NHS suppliers and meets the policy requirements of DH and NHSI” Delivered by: • Providing a modern and transparent Source 2 Settle system through effective technology partnership • Closing the loop – creating control and compliance by catalogue within a closed system • Designing and implementing products and services that make it easy for NHS purchasers to do the right thing • Recognising and removing barriers and costs for NHS suppliers to trade with the NHS • Providing resource to support change management and development of strong governance and controls • Proactive alignment to NHS eProcurement policy and NHSI targets and measures

What do we mean by Source 2 Settle? Finance Procurement Plan Source Buy Pay “Sometimes referred to as the “req -to- check” process, it includes initial requisitioning and approvals, sourcing, procurement, spend analysis, receiving, payment settlement, management of accounts payable, and general ledger accounts.”

Our Source 2 Settle Proposed Partnership Map • Provide the full range of 10 years experience PIM to Pay requirements • Disruptive and agile Experts delivering P2P technology providers NHS Infrastructure • Experience and Established NHS knowledge of the NHS clients NHS SBS VirtualStock market Shared service experts • Voice of NHS to • Voice of suppliers to shape the shape the service NHS service and and system NHS systems Suppliers • Influence suppliers • System clients – to adopt value needs to be real and undisputed

Delivering an Online Marketplace A new modern e-commerce marketplace that will change the way procurement teams buy NHS products to help transform relevant back office functions to deliver cost savings and efficiencies.

Key Features Enterprise PIM End to End (PIM to Pay) Catalogue Management Amazon style procurement Order Management E-Invoicing Track and Trace Real Time Reporting

Supplier Benefits Faster Sales Reach more NHS trusts easily A richer user experience - display products with images, attributes, descriptions, case studies, clinical evidence etc. Showcase products and innovations across the NHS Easy product and special offer promotion Immediate online negotiation functionality - agree pricing tailored to client needs Faster Payment Live pricing approval to prevent errors and invoice disputes Auto PO raising for easier invoice matching and immediate authorisation Manage/reduce debt and improve payment terms

Supplier Benefits Easier catalogue maintenance Reduce the time and cost of catalogue maintenance Use the system as a PIM - rich data, high standard, aligned to Global Data Synchronisation Network (GDSN) Sales efficiencies You won’t need a large sales force to reach multiple trusts View trusts usage against contracts awarded and any slippage System savings One system - innovative commercial model for visible, forecastable and transparent pricing