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NW Procurement Development

Category Reference Groups

Category Reference Groups will be established for each major area of spend and those Groups (CRG’s) will act as the interface between Trusts, Suppliers and procurement providers.

The model is built around the NHS Trusts taking greater ownership of their clinical and commercial direction with relevant support from procurement providers (be that SBS, HTE, NHSSC, GPS etc.) as required and determined by each CRG.

The objectives would be to review spend and product usage, develop strategies for the future direction and then to maximise the supply/market position going forward to better present arrangements for all concerned.

The start point will be to identify the top 100 suppliers across the NW, categorise and manage them on a regional basis through these Groups.

The clinical objectives will be to:

  1. Ensure clinical priorities are reflected in the overall commercial/procurement strategy for each category area
  2. Provide input to defining clinical specifications whilst identifying clinical opportunities that reduce clinical and patient risk
  3. Ensure the procurement strategy takes account of any clinical guidelines set down by respective National/Regional/Professional Associations
  4. Utilise and communicate with existing/emerging clinical networks to positively impact upon the clinical/supplier relationship which in turn will condition suppliers and influence the market place
  5. Adopt an increasingly total cost of ownership approach to ensure the correct clinical outcome
  6. Endeavour to improve patient care and treatment by identifying the most appropriate and cost effective clinical and procurement strategy
  7. Progress the ideal of mutual benefit that clinical engagement will deliver – an increased clinical appreciation for procurement and an improved financial and commercial reality for clinicians

The commercial role of each CRG is to:

  1. Manage the relationship with the existing key suppliers in each category to extract value from current arrangements.
  2.  Agree a range of dashboard metrics to aid the performance and management of key suppliers
  3. Develop short/medium and long term procurement strategies for each product area that reflects both Local/Regional and National objectives, whilst recognising the need to maintain competition in the markets.
  4. Where appropriate, promote an open book policy with key suppliers.
  5.  Promote closer integration with key suppliers and markets to improve overall supply chain performance, reduce the TCO (total cost of ownership) and drive innovation i.e. Use SRM (Supplier Relationship Management) to deliver a broader value set of benefits.
  6.  Understand the conditions required for suppliers to offer best in class pricing models

By focusing on the total spend with suppliers, it will highlight & improve the visibility of spend and variation across all Trusts. The opportunity to have key stakeholders aware of the overall vast sums being spent by each Trust with each company will, through the CRG, provide the opportunity to challenge, manage and ultimately develop a partnership relationship with key suppliers to drive improvement, innovation and reduce whole life costs of supply.

Category Reference Groups would promote stakeholder engagement, through dialogue with suppliers that allow the opportunity to identify potential to improve quality or reduce cost within existing arrangements and provide insight to the conditions that they would require to minimise the product and service costs