Comprehensive Procurement Training Programme for BEH-MHT Staff

1. 23/04/2015Procurement Training ProgrammeRequesters David Ford / Donald Christie (Procurement Team) Welcome V3.2 (a copy of this presentation can be found on the intranet)

2. Introductions • Your name • Your department • Your role • What would you like to take from the training course today?

3. Objectives • At the end of the session participants will have an understanding of the following: • What Procurement is in BEH-MHT • Key Principles of Procurement • Procurement Thresholds, local and European • Essential Procurement Documents • Procurement systems

4. Context NHS Constitution states: • Principles • 6. The NHS is committed to providing best value for taxpayers’ money and the most effective, fair and sustainable use of finite resources. • 7. The NHS is accountable to the public, communities and patients that it serves.

5. Define & review need Exit & termination Manage contract performance Develop specification Manage implementation and transition Determineprocurement strategy Contract award Invite Pre-qualify suppliers Negotiate? Evaluate tenders Issue RFQ or ITT What is procurement? “ The process of acquiring supplies, works and services. The process spans the whole cycle from identification of needs, through to the end of a service contract or the end of the useful life of an asset”

6. How does the Procurement Team help? • We work with staff and suppliers to ensure best value in the procurement of goods, services and works • We provide professional support to Service Departments • We check compliance • We work with AP to ensure prompt payment of invoices

7. The Procurement Team Head of Procurement – Georgi Davies Senior Buyer – Maria Barrell • Buyer – Donald Christie • Buyer – Olinda Fernandes • Buyer – David Ford

8. 4 Key Principles for the Trust and the Procurement Team: • Ensure Value for Money • Ensure compliance with English and European Law • Establish procedures to protect against allegations of staff acting unfairly or unlawfully • Assess risks associated with contracts

9. 2014 - 15 Outputs June July Mar Dec Jan Feb Aug Nov Oct Sept F&I committee Approval Procurement 2014-16 Strategy & Policy (Maria Barrell) Delayed Communications & Awareness 75% Spend FY13/14 95% Complete Contracts Register (Maria Barrell) Over £75k FY13/14 85% Complete Over £35k FY13/14 85% Complete Tender Workplan (Maria Barrell) Capture 40% of workplan e-tenders (Delta / Due North) Approved Suppliers List (Corporate Contracts) (David Ford) Publish on Intranet Procurement Team Objectives 2014-15 Procurement Team Objectives 2014-15 Comms Plan Approval Procurement Training (50%) Procurement Training (50%) Procurement Training /Comms (David Ford) Develop Procurement Training & Comms Internal Audit Nov/Dec 2015 Process & Systems Review (Olinda Fenandes) Delayed Review Report Record and Capture Savings Savings Register Savings Template Procurement KPIs (Olinda Fernandes / Donald Christie) 70% Target 75% Target 50% Target KPIs Template Updated 6th October 2014

10. Approved Suppliers List

11. Relevant Trust Policies • Procurement Policy • Standing FinancialInstructions • (failure to comply with rules breach of SFIs non approved suppliers) • 1.1.5: “The failure to comply with Standing Financial Instructions and Standing Orders can in certain circumstances be regarded as a disciplinary matter that could result in dismissal”

12. Typesof procurementEU Threshold (TCV)

13. Aggregation rules • Apply to the total contract value (tcv), not simply to an annual or monthly amount and includes extensions • On-going requirements (supplies and services) require aggregation over minimum of 48 months (either aggregate projected values over next 4 years or take the last 12 months’ expenditure and x 4) • Need to aggregate total expenditure across an authority • Avoid disaggregation! • Limiting contract length to reduce value below thresholds • Breaking up needs to multiple contracts, each below threshold These are considered a breach of EU procurement directives!

14. Aggregation • What do you think the Trust’s yearly spend on stationery is? • Does this fall below the EU / OJEU threshold?

15. Aggregation • The Trust’s annual stationery spend is around £160,000 (across the authority) • As this is an on-going requirementwe need to x4 = £640,000 • Therefore it is well above the EU/OJEU threshold and we need a contracted supplier

16. Trust Thresholds • How many quotes do you need for an order value £950? • How many quotes for an order of £3,500? • How many quotes for an order of £15,000?

17. BEH-MHT Thresholds • Up to £999 – (1 verbal quote – budget holder approval) • £1,000-£4,999 – (2 verbal quotes – budget holder approval) • £5,000-£9,999 – (3 written quotes – budget holder and responsible Director approval) • £10,000- £74,999 – (4 written quotes – budget holder and responsible Director approval) • £75,000-£249,000 - Competitive Tender – Responsible Director & Chief Finance & Investment Officer approval • £250,000 + - Competitive Tender – Service Director & Chief Finance & Investment Officer approval

18. Procurement Intranet Site and Documents • Quotation Record Form • Waiver Form • New Supplier Form • Bank Account Form

19. Quotation Record Form

20. Quotation Record Form

21. Registered Suppliers • How many registered suppliers do you think the Trust has on Agresso? • How many of these were used in the last financial year?

22. Registered Suppliers • The Trust has 5,000 registered suppliers (more or less) • Of these 2,500 were used in the last financial year

23. Requisitioner’sRole and Responsibilities • To ask ‘ Do we really need this?’ and if so to get the best possible value for all goods and services purchased • To attach quotations, QRF and Waiver forms where necessary • To check your goods/service thoroughly on receipt • To immediately chase the supplier if you have an issue or items to return • To Goods Receipt immediately on Agresso If goods/service are correct

24. Agresso

25. What is Agresso used for? • Raising requisitions and Approving requisitions • Purchase orders should be raised for all invoices with the exception of Agency staff (e-rostering) where a UBRN is needed • Goods receipting (which should be done as soon as the goods or services are received and before the invoices arrives) • Tracking orders

26. Importance of Goods Receipting (GRN) • T&Cs – 30 days to pay • Supplier put on hold • Trust can be sued • Loss of reputation of Trust • Loss of Financial Advantage • (an email is sent out every Tuesday morning to requesters with outstanding GRNs)

27. Benefits of Agresso • Agresso is important for on-going consistency, tracking and assurance that invoices are paid on time and correctly • Helps ensure correct GL coding and is automated • Helps check compliance with Standing Financial Instructions. • Aids better budget management. • A requisition with a PO is much easier to process and pay

28. Agresso • Process • Creating Requisitions • Catalogue • Free Text • Call Off Orders • Attaching Documents • Goods Receiving • Management • Returns Process • Workflow Enquiry – Requisitions • Own Requisitions • All Requisitions • Requisition Reject and Zero Balance

29. Catalogue Requisitions on AgressoThe following catalogues are available on Agresso • Glen Dimplex – Medical fridges • Wybone Ltd -  Outdoor Furniture • Welch Allyn UK Ltd – Medical supplies • Cardiac Services – Medical supplies • Sunrise Medical Ltd – Medical supplies • Karomed Ltd – Beds and Mattresses • Medisave (UK) Ltd – Medical supplies • Marsden Weighing Machine - Scales • Office Depot UK Ltd - Stationery • Business Dictation Ltd – Dictation equipment • Hospital Metalcraft Ltd - Medical furniture and equipment • HCE -  Health-Care Equipment & Supplies Ltd – Medical furniture and equipment • Premiere Products – Cleaning products • Gailarde Ltd - Household Textiles

30. Free Text Requisitions on Agresso • Please includethe following where relevant: • Delivery charge • Product code • Supplier code or part no. in ‘description’ • BEH Agresso Supplier i.d.(Only use suppliers setup on Agresso) • (but don’t include VAT)

31. Free Text Requisitions for Office Depot and Argos • When ordering from Argos: • Check the items, availability and the price of the goods using the following link www.argos.co.uk • When inputting the requisition details, include the Catalogue no. in the description, the Supplier id (300187), the Qty and the Price. • Add a 5% discount in the Discount Box for Items/ goods only. • Always add a delivery line to the requisition: Charges are as follows: • Small items: £3.16 Large items: £7.16 • Type in the Product Text Box: Card Id: 9826 1505 1092 0041 261/Account no: 9200 4124 • If you cannot find an item of stationery in the Office Depot Catalogue: • Go to  Web address: http://online.officedepot.co.uk • Login using name: VO-MHILL96 • Use Password: ViewOnly • Find what you want to order • Add the item as a free text using product code WGA, and include the Office Depot product code in the description • Supplier id is 301571 • Remember to include your Office Depot account number in the ‘Supplier account number’ box (O.D. will not process your order without this number!)

32. Exercise 1 • Raise a requisition using the catalogue: • Log in - User name: Train1–8, Client: MH, Password: Password 01 • Enter your own delivery address, Office Depot Account number 11824982 and delivery attention (your name and phone number) • Go into ‘search products’ and find ‘report files’, code 182251 • Order quantity of 3 • Find and order quantity of 4x ‘1 hole sharpener’, code 3337620 • Now delete the second line • Save as a standard requisition and note down the requisition number • If you’ve finished go help someone else 

33. Exercise 2 • Create a Free Text Requisition: • Clear previous screen • Add your delivery address and delivery attention details • Find the product code for ‘laundry contract’ • Enter description ‘provision of inflammable pillows’ • Find supplier ‘Agresso Training Supplier’ (205953) • Select Qty 1, Price £800 • Add a delivery charge of £30 • Save as a standard requisition and note the requisition number • Amend the requisition and make this into a call off order • If you’ve finished make a friend and help someone else 

34. Exercise 2(a) • Create a Free Text Requisition from Office Depot: • Add your delivery address and delivery attention details • Go to  Web address: http://online.officedepot.co.uk • Login using name: VO-MHILL96 • Use Password: ViewOnly • Search for (1) ‘whiteboard markers, chisel black’ 1638024 and (2) ‘white C5 envelopes 90gsm’ 2042143 – note the prices • Add the items as a free text requisition: • Product code ‘Office Stationery Sundries’ (search) • Description: include the Office Depot product catalogue code • Supplier id.: Agresso Training Supplier (search) • Add Quantity (2) and Price • Enter Office Depot account number 12345678 in the ‘Supplier account number’ box • Save as a standard requisition and note the number

35. Exercise 2(b) • Create a Free Text Requisition from Argos: • Add your delivery address and delivery attention details • Go to the internet and search www.argos.co.uk • Search for a white 7 inch desk fan. Note the supplier product catalogue number, the price of the goods and the availability • Input the requisition details: • Product: Office Equipment (search) • Description: Include the Catalogue no. • Supplier id.: Agresso Training Supplier (search) • Add the Qty (3) and the Price • Add a 5% discount in the Discount Box for Items/ goods only • Add a delivery line to the requisition: Charges are as follows: Small items: £3.16 or large items: £7.16 – Choose one as appropriate! • Type in the Product Text Box: Card Id: 9826 1505 1092 0041 261/Account no: 9200 4124 • Save

36. A Purchase Order!

37. Attaching Documents on Agresso

38. Goods Receiving on Agresso

39. Exercise 3 • Attaching Documents: • Open the requisition you created for inflammable pillows • Add a document, selecting any document from your own computer drive • Add another document • Open up the first document • Well done! Go help someone else 

40. Exercise 4 • Goods Receiving: • Open the Goods Receipt file • Enter Purchase Order 45323223 • Stop! Wait! • (What’s the difference between a PO and requisition number?) • Does this need to be goods receipted? • How do you know if the order has or has not been receipted? • How would you receipt the order? • When should you receipt the order? • How do you part receipt?

41. Agresso Management • Returns Process • Own Requisitions • All Requisitions • Workflow Enquiry – Requisitions • Requisition Reject and Zero Balance

42. Exercise 5 • Own Requisitions: • Open up your ‘Own Requisitions’ file • Check whether your requisitions are active or finished • Note the requisition numbers

43. Exercise 6 • Workflow Enquiry – Requisitions: • Open up the Workflow Enquiry - requisitions file • Search for your stationery requisition (you will need the requisition number) • Check the workflow status • Who is the requisition with to be approved? • Open the log book. What’s the difference? • Finished? Close the page and help someone else 

44. Exercise 7 • Requisition Reject and Zero Balance: • (a) • Open up the Requisition Reject and Zero Balance Folder • Open up the rejected requisition • Find out why it was rejected • Amend the quantities to 1 and send back into the workflow • (b) • Open up the Requisition Reject and Zero Balance Folder • Open up the rejected requisition • Find out why it was rejected • Close the requisition and save

45. What’s wrong with this requisition?

46. David’s Tips • GL Analysis • Single Sign on • Shortcuts • Requisition Amendments • Office Depot – Order seldom and in bulk! • Product Codes

47. NHS Supply ChainTo be used for ordering stock medical Items

48. NHS Supply Chain • Customer Service Contact: • Andrena Burr (Advisor) Tel: 01622 402690 E-mail: andrena.burr@supplychain.nhs.uk WWW.supplychain.nhs.uk Always quote: Requisition Point: 9A____ Requisition Number: _____W

49. IT Ordering • All hardware (PCs, Laptops, Printers, Mobile phones etc.) to be ordered via the IT self-service catalogue • Agresso Approvers only have access to this • Blackberries are still ordered via Agresso but need IT approval first • Contact IT helpdesk in first instance to get a SD number

50. Objectives • At the end of the session participants will have an understanding of the following: • What Procurement is in BEH-MHT • Key Principles of Procurement • Procurement Thresholds, local and European • Essential Procurement Documents • Procurement systems