Simon BrewinSimon Brewin

Overview of the Overview of the National Supply National Supply Chain Reform Task ForceChain Reform Task Force

Today’s Presentation…Today’s Presentation… National supply chain reform task force National supply chain reform task force

What’s driving e-commerce reformWhat’s driving e-commerce reform

Why we need a national approachWhy we need a national approach

Task Form Work GroupsTask Form Work Groups

Status of supply chain reform initiativesStatus of supply chain reform initiatives

SummarySummary

Health Health OOnline nline (NHIMAC) (NHIMAC) identified five key identified five key health information projects that depend on health information projects that depend on collaborative activity on a national basis.collaborative activity on a national basis.

Introducing e-commerce in hospital supply Introducing e-commerce in hospital supply chains was identified as a key project.chains was identified as a key project.

NHIMAC established the National Supply Chain NHIMAC established the National Supply Chain Reform Task Force in July 2000 to support Reform Task Force in July 2000 to support joint planning by governments, hospitals, joint planning by governments, hospitals, purchasing agencies and product suppliers.purchasing agencies and product suppliers.

National Supply Chain Reform National Supply Chain Reform Task ForceTask Force

About The Task ForceAbout The Task Force

VisionVision Improved Patient Care in a changing Improved Patient Care in a changing

Health EnvironmentHealth Environment

MissionMission World-class efficient and effective end-World-class efficient and effective end-

to-end supply chainto-end supply chain

About the Task ForceAbout the Task Force

Objectives Objectives Identify key areas for joint work between health Identify key areas for joint work between health

supply chain memberssupply chain members Develop activities Develop activities to to help members of the supply help members of the supply

chain to redesign business processeschain to redesign business processes Develop activitiesDevelop activities to to help members of the supply help members of the supply

chain to adopt new technologies in a consistent chain to adopt new technologies in a consistent fashionfashion

Provide forums for stakeholders across health to Provide forums for stakeholders across health to continue to collaborate and share information on continue to collaborate and share information on supply chain developmentssupply chain developments

Opportunities to reduce costs and improve Opportunities to reduce costs and improve the quality and reliability of supply chains.the quality and reliability of supply chains.

The importance of positioning Australian The importance of positioning Australian hospital purchasers and their suppliers to hospital purchasers and their suppliers to respond to global e-commerce trends for respond to global e-commerce trends for hospital purchasing.hospital purchasing.

What is DrivingWhat is Drivinge-Commerce Reform?e-Commerce Reform?

Size and fragmentation of the Australian Size and fragmentation of the Australian hospital supply chain.hospital supply chain.

Different business processes, technologies and Different business processes, technologies and management approaches already add costs.management approaches already add costs.

Inconsistent implementation of e-commerce Inconsistent implementation of e-commerce will further entrench fragmentation, reducing will further entrench fragmentation, reducing potential gains and deterring industry potential gains and deterring industry participation.participation.

Why Do We Need aWhy Do We Need aNational Approach?National Approach?

Structure: Task ForceStructure: Task ForceTask Force

Established July 2000 to collaborate on e-commerce.Vision. Purpose for each working group. Provide resources, general direction, remove

roadblocks. Monitor progress, steer, and report to NHIMAC/AHMAC.

Product NumberingEAN, HIBC

Electronically Connecting Trading

Partners

How to improve towards an optimal supply chain.

Understand end-to-end processes and critical

success factors. Implementation priorities.

Standards

Develop and report standards within an

overarching framework for priority areas.

Standard Contract

Terms and Conditions

Develop standard hospital contract and request for

tender documents.

Performance Measurement

Develop a performance

management tool with KPIs that can be benchmarked across Australian

hospitals.

Supplier (Partner) Engagement

Strategies for roll-out of Task Force programs to critical mass. Facilitation of adoption of working group guidelines. Event planning & coordination. Pilots. Roll-out.

MessagingDatasets,

other.

Electronically Connecting Trading Electronically Connecting Trading Partners Working GroupPartners Working Group

Developed a Business Framework.Developed a Business Framework.

Describes the building blocks for achieving the Describes the building blocks for achieving the vision of an vision of an OPTIMAL SUPPLY CHAIN inOPTIMAL SUPPLY CHAIN in the the Australian Health Sector.Australian Health Sector.

Key factor is collaboration between trading Key factor is collaboration between trading partners to streamline shared processes and partners to streamline shared processes and establish efficient, effective and accurate data establish efficient, effective and accurate data exchanges.exchanges.

It complements the more technical Standards It complements the more technical Standards Framework document.Framework document.

Performance Measurement Performance Measurement Working GroupWorking Group

Developed a Guideline for Hospitals.Developed a Guideline for Hospitals.

Steps through a process for putting the stake in the Steps through a process for putting the stake in the ground in terms of “where we are today” - current ground in terms of “where we are today” - current performance.performance.

Hospitals can measure performance before and after Hospitals can measure performance before and after any change (eg. as a result of streamlining any change (eg. as a result of streamlining processes).processes).

Determine/demonstrate benefits of Determine/demonstrate benefits of e-commerce/change.e-commerce/change.

Includes national KPIs for benchmarking between Includes national KPIs for benchmarking between similar hospitals (services, size etc).similar hospitals (services, size etc).

Standardised Approach to Standardised Approach to Contract Terms and Conditions Contract Terms and Conditions

Working GroupWorking Group Developed a standard contract for the supply of Developed a standard contract for the supply of

goods and services to hospitals.goods and services to hospitals.

Developed a standard request for tender Developed a standard request for tender document.document.

High level of cooperation was required to come High level of cooperation was required to come to consensus between jurisdictions on terms to consensus between jurisdictions on terms and conditions.and conditions.

Further work to be taken to move documents to Further work to be taken to move documents to the next level of maturity.the next level of maturity.

Supplier EngagementSupplier Engagement

Facilitates implementation of Task Force deliverables and recommendations - particularly compliance to any standards.

To influence e-commerce and supply chain reform directions in the Australian Health Sector.

Arranges and promotes Annual Health Supply Chain Summit. Summit 2002 (Nov, Sydney):

Next Health Supply Chain Summit in planning phase.

Over 100 participantsOver 100 participants Representatives across the whole health sectorRepresentatives across the whole health sector Supported recommendationsSupported recommendations

Therapeutic Goods Association Therapeutic Goods Association

Standards AustraliaStandards Australia

National Office for the Information EconomyNational Office for the Information Economy

Australian Procurement & Construction CouncilAustralian Procurement & Construction Council

SWEEP Project (Deakin University)SWEEP Project (Deakin University)

Medicines Coding Council of AustraliaMedicines Coding Council of Australia

Commonwealth, State and Territory initiatives Commonwealth, State and Territory initiatives

Coordination with OtherCoordination with OtherNational InitiativesNational Initiatives

High level of collaboration/ teamwork achieved High level of collaboration/ teamwork achieved within Task Force & 5 Working Groups within Task Force & 5 Working Groups

Broad agreement of National Directions in Supply Broad agreement of National Directions in Supply Chain ReformChain Reform

Final phase of 2002/03 Task Force deliverables Final phase of 2002/03 Task Force deliverables endorsed by AHMAC.endorsed by AHMAC.

Attend the Health Supply Chain Summit Attend the Health Supply Chain Summit (~July/Aug2004). Continued participation to (~July/Aug2004). Continued participation to progress national initiatives and uptake for the progress national initiatives and uptake for the transition to an optimal electronic supply chain in transition to an optimal electronic supply chain in health. health.

In Summary…In Summary…

www.health.vic.gov.au/www.health.vic.gov.au/supplychainsupplychain

New Site (~Sept 2003) New Site (~Sept 2003)

www.healthsupplychain.gov.auwww.healthsupplychain.gov.au

OROR jane.dooley@dhs.vic.gov.au jane.dooley@dhs.vic.gov.au

613 9616 7008613 9616 7008

ContactsContacts

Thank YouThank You