#CommercialMatters: An insight into working with the NHS supply base
This month we're looking at #CommercialMatters. To discuss this topic further, Ruth Burns, Supplier Relationship Manager, speaks about the importance of working in partnership with the NHS supply base.
“A strong supply base is essential for the NHS and is a vital component in ensuring the health service operates 24/7, day-in day-out, for the benefit of us all. Developing healthy and competitive supply markets, and forging strong and mature relationships with suppliers should be important to everyone involved in NHS procurement and supply chain management and that includes having regular, open and honest conversations with them about your specific requirements, and how those needs can be met.
“In my experience, there are two essential elements in any successful Supplier Relationship Management (SRM) programme:
“Firstly, having a planned approach and regular dialogue with your existing supplier base, in order to build close and effective working relationships which are mutually beneficial. This should include contract and performance management, but it should also include gaining an understanding of those suppliers’ own business and operational challenges, insights into their future strategic ambitions, the new products and services they are developing, and how the wider market in which they are operating is evolving.
“Our suppliers are a great source of innovation and by harnessing new products and services, and adopting new technologies and ways of working, they have the potential to make a massive difference to the NHS.
“Secondly, pro-actively researching and engaging with the supply market in advance of any future procurement process has huge benefits. In my view, researching the supply market and undertaking pre-procurement market engagement with both existing and potential new suppliers ahead of undertaking a tendering exercise is a vital component in ensuring a successful outcome to your procurement process.
“Clearly, as public authorities we need to engage with suppliers in a transparent and objective manner, and we must ensure equal treatment within our procurement processes, but that shouldn’t put us off engaging with the full supply market ahead of commencing a procurement. In my view it’s best to do this as early as possible in advance of the commencement of the procurement process itself.
Engage early
“It can be a big challenge for suppliers to manage their tender opportunities. Many suppliers have small bid writing teams and may not have long enough to prepare for a tender, which would reduce the quality and number of bids you get. Giving suppliers advance knowledge of up-coming tenders by publication of a procurement pipeline, and engaging early is a big help.
“We work with companies to fully support their efforts to supply the NHS, encouraging our NHS customers to build positive working relationships, develop mutual understanding, and, where possible, work in partnership with them.
“What I have been encouraging our customers to do is pre-procurement engagement with suppliers. And not just a 15-minute presentation – where feasible, that might involve an on-site visit where you are open and honest with each other about what challenges you might be facing.
“If you are going back out to tender, you want to give the suppliers as much information as you possibly can. So, do your homework before you put your Invitation to Tender (ITT) out, and do your pre-procurement market engagement.
“You need to expect the best of your suppliers as well. You need to be clear that you want a quality bid, so that’s what I’m talking to suppliers about.
“I also strive to be the suppliers’ voice within NOE CPC, and we’ve got tangible examples where I have been able to articulate their challenges to our members, that has made them reconsider their timelines and maybe reconsider their approach to a procurement.
Looking for opportunities
“We are also looking at developing our horizon scanning capability, by using both our internal data, and data from third parties, to review when contracts are due to expire.
“What that horizon scanning does for the NHS, is that it gets all of the awarded suppliers on a framework aware of an opportunity, so they are ready and listening, and open to having dialogue with the customer, and that means better quality bids and more bidders.
Read more about how we use supplier insight tools to assess market trends.
“Going forward, as part of the Government’s Transforming Public Procurement project, there will be a central digital platform which will allow suppliers to see all opportunities in one place. We will work to support the implementation of this new platform by engaging with both customers and suppliers.
“This work aligns with our objective of putting the patient at the centre of everything we do, because ultimately, we want high quality suppliers who can deliver the services that the NHS needs to be delivered, because if you don’t deliver those services in an effective, efficient way that’s beneficial to the health economy, then clinical care can’t be delivered.
“Most trusts would close within 24 hours if their laundry supplier couldn’t deliver. Imagine being told you’ve got to bring your own bedding when you come in.
“So, we do what we can to encourage positive approaches to procurement, because we want it to be a positive experience for everybody who works with us.
Supporting suppliers of all sizes
“Another challenge is supporting Small and Medium Enterprises (SMEs) who have been awarded onto our frameworks. They have been accredited, they’ve met certain standards, they’re on our frameworks, which is great – but then it’s customers who need to take that step. They might not be a big blue-chip company, but that doesn’t mean they aren’t committed to delivering a really good service to the NHS, because they are. Sometimes it’s about taking a leap of faith.
“We’ve done a lot to try to educate SMEs. For example, we’ve spent a lot of time on social value and sustainability, helping them understand what the road map is and what they are expected to do. Our next Sustainability and Social Value webinar for suppliers will take place on 2nd October, and you can sign up here.
“If you would like to know any more about our work to support our suppliers, you can contact our Support Desk.”