Our activities and savings initiatives NHS Supply Chain

Our activities and savings initiatives NHS Supply Chain: Hotel Services Provided by NHS North of England Commercial Procurement Collaborative Presented by: Kevin Chidlow, Category Tower Director

Contents • • • History of NHS Procurement Why We Do This… Product Optimisation The Operating Model Benefits About Hotel Services Our Mission and Objectives Key Facts Annual Spend (transacted) The Top 10’s Category Introduction and Savings • • • Objectives: • Introduce NHS Supply Chain: Hotel Services (Category Tower 11) • Explain how NHS Supply Chain has changed • How we can benefit your organisation • What you can do now to save money • How you can work with us to shape future contracts Cleaning and Janitorial Paper Hygiene Medical Pulp Polymer Other Your Insights NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

History of NHS Procurement NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Why We Do This… Lord Carter’s report reviewed operational efficiencies in NHS providers and recommended improvements in the way the NHS chooses, uses and purchases clinical supplies. Report identified: • Improvements in procurement efficiency • Over 600, 000 products lines • Up to 35% variation in product prices • Adoption of a Procurement Transformation Programme. Cash releasing saving: • £ 2. 4 billion • Investment back into frontline services. NHS buying power: • The NHS has the potential, through greater collaboration, to leverage its purchasing power on a national scale and deliver value for money for NHS trusts and the taxpayer. NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Better Product Optimisation Will Increase Savings Optimisation range of products clinically evaluated and assured = Cash releasing savings that can be reinvested in front line services Reduced range = higher volume Better value for money NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

New NHS Supply Chain Operating Model 80% NHS Supply Chain Growth NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Benefits • Lowering costs • 1 NHS • Reduced point of sales • Innovation • Whole system costs, not unit costs • More effective introduction of new products • Proper category management • Procurement and supply chain expertise • Commitment NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

About Us Our range of products which. Customers often fade into the background, but are never the Year categories cover a wide Sales Products less core item, which are key to the 2017 £ 105. 56 m 424 every day running of a trust. 5753 2018 £ 104. 74 m 434 5973 Provided by NHS North of England Commercial Procurement Collaborative (NOE CPC) NOE CPC was established in 2007, and wholly owned by the NHS, working with NHS organisations to harness their buying power and influence the market in order to put in place competitive framework agreements. NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Our Objectives Operate a ‘world class’ category management service in Hotel Services for the NHS that delivers unrivalled value, working as an integral partner within the New Operating Model Objectives q Provide cash releasing savings opportunities to NHS trusts q Provide a high quality product range appropriate to the needs of the NHS q Develop excellent relationships with customers and suppliers to bring innovation and added value to the NHS. Switching opportunities Price reductions Non Transacted Frameworks q Identify alternative products with customers, to offer savings. q Working with customers to review spend data allows to identify savings opportunities e. g. Buy Price = Sell Price. q Support trusts to complete their requirements for products such as uniforms, catering equipment and medical furniture. q Leveraging competition through § National volume § Product range consolidation § National contracted products (NCP) q Consolidating spend to maximise leverage across the supply chain. q Develop price ranking sheets with more detail of the opportunities. q Share successful switches through customers case studies. q Examples include § Hand towels § Chlorine tablets § Centrefeed rolls. q Introduction of innovative products. NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative q Seek to optimise and standardise product ranges across the NHS where appropriate, whilst ensuring continued quality and service.

Key Facts About Cleaning Supplies Purchase 98, 220 tubs of Chlorine Tablets each year 43 4 Suppliers Annual spend on category Suppliers account for 50% Active product lines 1095 378 CUSTOMERS 19% of category spend on disposable mops £ 12. 3 million £ 1. 7 million spend on Cleaning cloths last year Over £ 1 million 22 annual spend on laundry detergent powder Products groups account for 80% of category spend 652, 335 litres Free mop head adaptors available from suppliers NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative of washing up liquid purchased in 2018 Equivalent to 4, 349 full bathtubs

Trust Spend 2018 With via NHS Supply Chain Spend (2018) = £ 104. 74 m* Contract Group Total Sales (£M) Paper Hygiene Products £ 32. 68 Medical Pulp, Macerators and Ancillary Products Polythene Products Cleaning Supplies £ 21. 21 £ 18. 46 £ 12. 26 Catering Products Tableware and Light Equipment Transacted Textiles Disposable Curtains £ 8. 09 £ 5. 52 £ 3. 08 Medical Furniture Equipment Accessories and Sackholders £ 2. 30 Personal Care Products and Patient Hygiene Accessories Sackholders Floorpads and Scourers £ 0. 85 £ 0. 23 £ 0. 06 * transacted only NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Category Strategy – Cleaning and Janitorial Cleaning and janitorial products Medical pulp and macerators Paper hygiene products Cleaning and janitorial products Polymer products Annual spend £ 12 million • Domestic chemicals • Domestic gloves • Mops Key Suppliers – Ecolab, Diversey, and Scot Young Furniture Contract Validity – August 2021 NHS Hotel Services Catering consumables and equipment NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Textile products Patient hygiene

Domestic and Cleaning Supplies Lot No Framework Product Range Expiry Date Lot 1 Mops and Handles Wet mopping, disposable and launderable Lot 2 Ancillary products Bowls, buckets and brushes Lot 3 Launderable Microfibre Cloths and mops Lot 4 Non-Launderable Microfibre Cloths, mops and systems Lot 5 Spill Kits Blood and body fluid spill kits Lot 6 Electrical Cleaning Scrubber driers, hoovers and steam cleaners Lot 7 Colour Coded Cloths Cleaning cloths Lot 8 Domestic Gloves Vinyl and domestic household Lot 9 Cleaning Chemicals Ready to use chemicals and concentrated chemical for dilution Lot 10 Cleaning Chemicals - Dosing Domestic and catering Lot 11 Higher Level Disinfectants Chlorine free Lot 12 Chlorine Tablets and Granules Chlorine disinfection 30 October 2020 Lot 13 Floor Pads and Scourers Catering and machines 29 February 2020 31 October 2019 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative 31 January 2020 31 October 2019 31 January 2020

Saving Opportunity – Chlorine Releasing Tablets FROM TO 11 - 43% SAVING Chlorine Releasing Tablets 1. 7 g Na. DCC Tablet with detergent o t p u g n i v a s y l 2 l 6 a i 9 t , n 0 e Chlorine 2 t 2 Releasing o £ P NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Tablets 1. 7 g Na. DCC Tablet with detergent

Category Strategy – Paper Hygiene Products Cleaning and janitorial products Polymer products Medical pulp and macerators Furniture Paper hygiene products Catering consumables and equipment NHS Hotel Services Paper hygiene products Annual spend £ 33 million Textile products • Paper hand towels • Couch roll • Toilet tissues Key Suppliers – Essity and Kimberly Clark Patient hygiene Contract Validity – March 2020 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Saving Opportunity – Paper Hygiene Products FROM TO 18 -30% SAVING Purchasing hand towel sleeves o t p u g n i v a s 0 y Purchasing hand l l 0 a 7 i towel , t 3 n rolls 0 e t 2 , Po £ 6 The NHS Supply Chain: Hotel Services team are currently working with trusts to establish comprehensive case studies to fully outline the savings available through this long term saving opportunity. NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Category Strategy – Medical Pulp and Macerators Cleaning and janitorial products Medical pulp and macerators Paper hygiene products Polymer products Medical pulp products and macerators Furniture Annual spend £ 21 million • Bed pans • Kidney NHS dishes. Hotel • Urinals Services • Medicine pots Textile products Key Suppliers – Vernacare and MFP Contract validity – March 2021 + 24 months Catering consumables and equipment NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Patient hygiene

Double Bowling – Savings Initiative Hotel Services have carried out an analysis on the way in which detergent proof washbowls are being used within trusts. During this review it was identified that some trusts are ‘double bowling’ to prevent leaking and add stability to the washbowl product. In further consultation it has been determined that most products are being filled incorrectly. The following guidance has been produced by the Hotel Service team to support in the most effective way to use the products. 3 1 2 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative 4

Category Strategy – Polymer Products Cleaning and products Polymer janitorial Annual spend - £ 22 million products • Nurses aprons • Clinical waste sacks • Domestic waste sacks Medical pulp and • Clear, white and coloured bags • Disposable curtains macerators Key suppliers – BPI, HPC, Eximex, Behrens &Sons, NHS Hotel Grosvenor Contracts Services Paper Contract validity – February 2021 hygiene products Catering consumables and equipment NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Polymer products Furniture Textile products Patient hygiene

Saving Opportunity – Polymer Products FROM TO 34% SAVING Aprons BTB 272 is one of the most widely used aprons across the NHS Due to our recent contract extension we have negotiated a reduced for this product, offers a 34% saving NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Saving Opportunity – Polymer Products FROM TO 4. 5% SAVING Aprons – Flat Packs Aprons - Rolls BTB 102 BTB 272 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Category Strategy – Others Textile products Annual spend £ 5 million (transacted), £ 9. 5 million (direct) Uniforms and workwear | Curtains and blinds (non-disposable) | Bedding and linen Key suppliers – MWUK, Medline Contract validity – April/June 2021 Furniture Annual spend £ 2 million (transacted) Settees | Multi-sensory equipment | Examination couches Key suppliers – Knightsbridge Furniture, Teal Pineapple, and Hospital Metalcraft. Contract validity – September 2021 Catering consumables and equipment Furniture Catering consumables and equipment Annual spend £ 8 million (transacted) Crockery | Food transportation systems | White Goods Key Supplier – Alliance Disposables Contract Validity – April 2021 Patient hygiene Annual spend £ 1 million Patient packs which include various grooming, hygiene, dental and shaving products Key Suppliers – PTP Contract validity – January 2021 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Patient hygiene

Your Insights • As we prepare for the renewal of the Hotel Services: Cleaning Supplies, Equipment and Associated Products Framework Agreement we will be engaging in the following ways: o Get feedback and insights from as many customers as possible to ensure the framework is fit for purpose and meets your needs. o Discuss upcoming market developments, innovations and new technologies with suppliers. o Form a dedicated customer group to help shape and deliver our Strategy and Category Management Programme. o Present developments and key savings initiatives at as many of the AHCP regional meetings as possible. • We are about to issue a customer survey to gain some headline feedback – we will be working with the AHCP to facilitate this and would gratefully appreciate you taking the time to complete it. • If at any time you have a specific contribution, request or would simply like to provide some input please contact us on hotelservicessupport@supplychain. nhs. uk • Basic timeline Publish tender with an aim to February 2020 23 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative Launch new agreement October 2020

Any Questions or Suggestions? ? 24 NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative

Thank You For Your Attention Customer Helpdesk hotelservicessupport@supplychain. nhs. uk Supplier Helpdesk hotelservicessuppliers@supplychain. nhs. uk Twitter: @NHSSupply. Chain www. supplychain. nhs. uk NHS Supply Chain: Hotel Services is provided by NHS North of England Commercial Procurement Collaborative