NHS Institute Case Study - 2009 - Page 3

In 2007, supply expenditure in excess of £50,000 required approval by the procurement team. However, in a confident start to 2008, the procurement team, having already demonstrated improved efficiency, is now able to promote the use of their service for procurements above £5,000. This enhanced spend control has been achieved without any increase in the number of procurement team staff, reflecting the time efficiency savings already achieved by the introduction of eSourcing.

The transformation of the procurement process has received the highest acclaim throughout the NHS Institute and many internal customers have praised the procurement team for their user-friendliness and excellent support.

Furthermore, eSourcing technology is eco-friendly. Curtis Fitch iSource™ has reduced the amount of paper used for tenders by up to 80% and has eliminated the cost of storing paper versions of all tender responses. In addition, the software enables all data to be centralised for sharing with other functions and ease of audit control and is flexible in application, for example, Human Resources recruitment processes - uploading of CVs, applications, evaluations, etc.

The NHS Institute also completed two successful reverse auctions using Curtis Fitch iSourceâ„¢ and delivered further significant savings. These reverse auctions were for Lap Top Packs in June 2007, which produced a 44% saving, and Contract Cleaning Services in September 2007, which achieved a 58% saving. The graphs in Appendices 1 and 2 from Curtis Fitch iSourceâ„¢ illustrate the savings achieved in these reverse auctions.

The streamlined processes associated with eSourcing enables suppliers to concentrate on developing the content of their submissions rather than adhering to time consuming processes. Without these systems the volume of tenders generated by the NHS Institute might cause suppliers to suffer from 'tender fatigue' and the quality of tender submissions to decline as a result. This entirely paperless process has significant benefits for suppliers, not least of which is guaranteed on time delivery with no reliance on the performance of couriers. This helps the NHS Institute to develop strong relationships with suppliers.

Verdict: Savings in Time, Money and Resource

From the outset of this project, all participants were clear about their particular goals and the overall objectives. The NHS Institute, supported by Ashgreen and Curtis Fitch, required better use of key resources, more effective use of time and money and, at least as importantly, to establish a proactive commercial sense within public sector procurement, in readiness for future demands for increased efficiency.

The weaknesses of traditional methods were readily identifiable. Ashgreen and Curtis Fitch had the emphatic results achieved with large private sector companies to provide the eSourcing solutions. The challenge to change established and accepted ways of working was willingly accepted by the NHS Institute. Their collective determination ensured the right solutions would be delivered and their expertise and management experience guaranteed the essential specialist support. The results demonstrate the level of success already achieved from eSourcing. The NHS Institute is confident that commitment to the highest levels of customer service and desire for improvement through change mean that the best is yet to come.

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