Contract and Procurement Specialists (CPS) and Buyers - Roles and Responsibilities

1. Contract and Procurement Specialists (CPS) and Buyers - Roles and Responsibilities October, 2010

2. Agenda • Objectives • Review Rules of Engagement • Review Roles of 3SO Contract and Procurement Specialists • Review Roles of EMH Buyers (namely, Buyers, Contract Coordinators, Purchasing Assistants, Purchasing Clerks) • Discuss and develop an clear understanding of the roles and responsibilities • Next steps • Other

3. Meeting Objectives • Develop a set of working guidelines for the contract and procurement specialists and buyers which clarify the roles and responsibilities • Provide a clear delineation of the roles and responsibilities, wherever possible • Identify grey areas within the roles and responsibilities, including resolution actions • Provide a foundation for process and procedural development • Embrace the roles and responsibilities as agreed today • Identify teams to complete next steps

4. Rules of Engagement • Provide input • Share ideas • Be objective and factual • Listen – let one person finish their ideas • Discuss and develop an clear understanding of the roles • Don’t personalize, and don’t take anything personally • Embrace your role and responsibilities

5. 3SO Contract and Procurement Specialists – Roles and Responsibilities • Responsible for generating group procurement efficiencies through the development of strategic sourcing contracts between vendors and partnering hospital for in-scope capital/non-capital and clinical supplies • Follows hospital policy, government guidelines pertaining to the Broader Public Sector (BPS), and best business practices • Responsible for the negotiation, contracting and overall management of the procurement cycle on behalf of 3SO and its equity member hospitals • Facilitates the development of, and the execution of a contract management strategic plan for 3SO equity member hospitals. • Leads Regional Focus Groups ( RFG’s) across the region in an effort to drive cooperation, collaboration, & consolidation of regional contract opportunities Initiate and drive product standardization initiatives • Coordinates buying activities for the buyer(s), contract coordinator(s), and purchasing assistant(s) across the region.

6. 3SO Procurement Specialists – Roles and Responsibilities (cont’d) • Initiates and drives new contract development opportunities • Ongoing management of existing and new contracts and vendor relationships • Leads the competitive bid process through RFx development and assessment • Maintains/ Manages the SAP Material Master and Vendor Master file database on behalf of 3SO and its equity members • Responsible for data analysis on product/service usage, vendor service, vendor performance, and in support of the overall regional contract management process and adherence • Resolves discrepancies with Accounts Payable when created by the contract • Leads back order/recall process, identifying substitutions wherever possible with the assistance of the EMH staff • Follows up on elevated back orders or expedited items

7. EMH Buyers – Roles and Responsibilities • Assists the Contract and Procurement Specialist(s) in the development of cost containment, product standardization, vendor consolidation and other supply chain management strategies • Follows hospital policy, government guidelines pertaining to the Broader Public Sector (BPS), and best business practices • Supports the Contract and Procurement Specialist within the procurement cycle on behalf of 3SO and its equity member hospitals. Collaborate with the Contract and Procurement Specialist while assisting in developing and executing the competitive bid process i.e. RFQ, RFI, etc. excluding RFPs. Assist the Contract and Procurement Specialist(s) in implementing negotiated contracts, by entering the Purchase Orders in a timely and accurate manner • Supports the Contract and Procurement Specialist in the development of contract management strategic for 3SO equity member hospitals, through opportunity identification and analysis • Assists the Contract and Procurement Specialist(s) with product and equipment trial and evaluation processes

8. EMH Buyers – Roles and Responsibilities (cont’d) • Updates new contract specifications • Gatekeeper to stop direct departmental visits from vendors and competitors • Works with vendors to resolve discrepancies • Resolves vendor issues i.e. delivery, quality, returns • In collaboration with the CPS, orders samples, collects data as required in support of the RFx development and assessment • Initiates material masters and vendor masters as required, using the 3SO forms provided. • Responsible for collecting data on product/service usage, vendor service, vendor performance, and in support of the overall regional contract management process and adherence • Resolves discrepancies with Accounts Payable when created by the Purchase Order • Manages product and equipment recalls and alerts at the site level • Executes a timely review and processing of requisitions using SAP either manually or through SRM

9. EMH Buyers – Roles and Responsibilities (cont’d) • Direct face-to-face, day-to-day client stakeholder interaction • Manages product returns/repairs with Supply Clerk/Assistant/Receiver • Expedites orders and follows-up on back-orders

10. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Responsible for generating group procurement efficiencies through the development of strategic sourcing contracts between vendors and partnering hospitals for in-scope capital/non-capital and clinical supplies • KGH all in scope, extending to QHC, BGH, PC , and HD (in order or priority and determination of buy in) • Foundation/donor money (policy to be developed – David/Karen ) • Includes revenue contracts • Coaching for competitive process will be provided by CPS to Buyer/Contract Coordinator and EMH stakeholder. Provide contract templates, and T&C’s Competitive process will be managed at 3SO, and contract will be managed at 3SO. (Provide training to buyers – Karen/John?) • Accountability lies with CPS • Buyer • Assists the Contract and Procurement Specialist(s) in the development of cost containment, product standardization, vendor consolidation and other supply chain management strategies • Coordinate with PS any minor equipment/capital under $2k Issue PO. Request for quote process. • Guidelines for moving contract to 3SO – need for metrics • No contracts to be issued, and reinforce compliance with existing contracts. • Could participate in competitive process • No contracts are managed at EMH level.

11. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Follows hospital policy, government guidelines pertaining to the Broader Public Sector (BPS), and best business practices • Risk management - Liability and insurance statements – to develop a liability and insurance statement with BPS lawyer (David) • Buyer • Follows hospital policy, government guidelines pertaining to the Broader Public Sector (BPS), and best business practices

12. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Responsible for the negotiation, contracting and overall management of the procurement cycle on behalf of 3SO and its equity member hospitals • Service contracts created as a 45…, which indicates departmental signoff for approval? (Karen to investigate with HR) • Printing option within EMH SAP to be investigated. (Julie to investigate) • Copy of signed contracts are sent to vendors/suppliers, when required. • Feedback to all buyers on completion of non-stock contracts. • Copy of Health Pro and services/equipment contracts provided to the site. • Buyer • Supports the Contract and Procurement Specialist within the procurement cycle on behalf of 3SO and its equity member hospitals. Collaborates with the Contract and Procurement Specialist while assisting in developing and executing the competitive bid process i.e. RFQ, RFI, etc. excluding RFPs (competitive process). Assists the Contract and Procurement Specialist(s) in implementing negotiated contracts, by entering the Purchase Orders in a timely and accurate manner • Buyers complete discreet PO’s. • Create PO’s from copy of contract, when required. • If item is ordered a number of times to create material master. (Provide reports PO being created without material numbers, when requested by SCM (Julie) To provide instructions Training to be shared with all SCM s) • Buyers are set up to see plant specific contracts and not 3SO (Julie to follow up) • Completion of requisition process within PC and KGH (Training to be provided Karen BGH to be retrained ) • Buyer and CPS to discuss new material master prior to submission of form • Checklist for new material master • Visibility into item master into Purchasing Tab(Karen to investigate seeing Purchasing tab)

13. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Facilitates the development of, and the execution of a contract management strategic plan for 3SO equity member hospitals. • Buyer • Supports the procurement specialist in the development of contract management strategic for 3SO equity member hospitals, through opportunity identification and analysis. • Proactive approach to the execution process in support of strategic plan • Review requests from stakeholders • Ask the appropriate questions

14. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Leads Regional Focus Groups ( RFG’s) across the region in an effort to drive cooperation, collaboration, & consolidation of regional contract opportunities. Initiates and drive product standardization initiatives. • Initially monthly • Value analysis • Clinical participation • Trial results to be formalized. Provide format for formalized trial results to the Buyers • Buyer • Assists the Contract and Procurement Specialist(s) with product and equipment trial and evaluation processes • Within EMH • Lead standardization of product within hospital • EMH provides Purchase Order for samples and its direction to appropriate person • Provide trial results

15. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Coordinates indirectly buying activities for the buyer(s), contract coordinator(s), and purchasing assistant(s) across the region. • Work with SCM on day to day issues, and resolution • Buyer

16. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Initiates and drives new contract development opportunities. • Review of existing items and develop new contracts Already set up at SCI but not extended (BGH and PC) • Items not currently on a contract with SCI, during ONB or arise during day-to-day operations • Value added services i.e. Microsoft review • Gatekeeper of vendor visits i.e. new product or technology • Vendors must present ideas to. • Vendor Visitation Policy (David) • Buyer • Updates new contract specifications • End user should not be meeting with salesperson, buyer should be meeting with CPS. • Direct salesperson to Contract and Procurement Specialist • Stakeholder must become a gatekeeper and stop visits with vendors and competitors

17. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist (Begin Session 2) • Ongoing management of existing and new contracts and vendor relationships • Ongoing contracts will be updated including freight charges, and minimums • Communication of existing, new and changes to contracts • Buyer • Works with vendors to resolve discrepancies on the PO • Pricing – verify last updates on pricing within SAP. If not recent phone CPS if contract pricing phone vendor to indicate contract pricing applies, but if vendor indicates no, then this will be raised to the CPS’s • Resolves vendor issues i.e. delivery, quality, returns • Day to day issues, if multiple/recurring issues contact CPS • Communication of existing, new and changes to contracts

18. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Leads the competitive bid process through RFx development and assessment. • Buyer • In collaboration with CPS, orders samples, trials, collects information(contacts, processes) as required in support of the RFx development and assessment • Issue PO’s for samples and trials, etc. • Involvement will be on an and RFx by RFx basis, based on participation within the hospitals, $ value of purchase • Follow and comply with the BPS Supply Chain Guidelines

19. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Maintains/ Manages the SAP Material Master and Vendor Master file database on behalf of 3SO and its equity members • As applicable to contracts only. • Verifies if there is an existing contract for a request made by the Buyer prior to issuing material master • Buyer • Initiates material masters and vendor masters as required, using the 3SO forms provided. • Additions to contracts must be discussed with CPS prior to issuing the Material Master

20. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Responsible for data analysis on product/service usage, vendor service, vendor performance, and in support of the overall regional contract management process and adherence. • Buyer • Responsible for collecting information on product/service usage, vendor service, vendor performance, and in support of the overall emh contract management process and adherence.

21. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Resolve discrepancies with Accounts Payable when created by the contract • Buyer • Resolves discrepancies with Accounts Payable when created by the Purchase Order • Determines if contract issue and brings to the CPS • Will need to fix the PO in all instances

22. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Leads back order/recall process, identifying substitutions wherever possible with the assistance of the EMH staff. Seeks approval from the clinician. • Communicates recall with SCM immediately. • Communicates SCI back orders to emh Buyer • Buyer • Manages product and equipment recalls and alerts at the site level. • Bringing in samples, etc • Determine criticality at emh and communicate to CPS • (SCM) Coordinate with Stores Attendant. • Manages back orders at EMH site. • Review back order report daily and forward any inventory items you do not have the substitutes for are elevated to the CPS

23. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • *****(monitoring requisitions at SCI – IT? ) • Buyer • Executes a timely review and processing of requisitions using SAP either manually or through SRM. • Monitor requisitions to ensure they are converted to a PO. • Direct face-to-face, day-to-day client stakeholder interaction

24. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities • Contract and Procurement Specialist • Follows up on elevated backorder or expedited items. • Escalate as required • Buyer • Manages product returns/repairs with Supply Clerk/Assistant/Receiver, including SCI • Expedites orders and follows up on back-orders • Ensure dates and information are maintained in SAP • Escalate non-conformances to the CPS

25. 3SO Contract and Procurement Specialist and EMH Buyer –Roles and Responsibilities - Parking Lot • Debbie/David – Purchasing Clerk title in PSFDH • Tiger – Contract Specialist • Karen – Initiate Procurement Policy and Procedure Manual • SCM’s to participate in a competitive process • Forms - custom and BPS available for Buyers

26. 3SO Contract and Procurement Specialist and EMH Buyer – Next Steps • Embrace the roles and responsibilities • David – slide for breakouts for EMH’s to be reviewed • David/Karen – Policy to be developed for Foundation/Donor Money • Train the buyers on the competitive process (Karen/CPS?) • David – Develop a liability and insurance with the BPS lawyer. • Karen – Investigate 45 contracts in SAP with HR • Julie – To investigate printing 45 contracts initiated at 3SO at the EMH’s • Julie – To provide instructions on creating report for PO’s created without material masters • Julie – Buyers visibility into contracts ie 3S0 • Karen – to investigate the Buyers having access to other sites Purchasing tab • Karen – To train and implement requisition process in PC and KGH • Karen - To retrain buyers in BGH on requisition process

27. 3SO Contract and Procurement Specialist and EMH Buyer – Next Steps • Karen – To investigate possibility of Buyers seeing Purchasing tab on material master. • WSIB certification – vendor to provide. Who expedites? • SCM – All SCM’s to participate in a competitive process • CPS - Forms – Custom, BPS to be supplied for buyer training • Julie – Printing options for PO’s created at 3SO • Karen – 4500….input vs CLA

28. 3SO Procurement Specialist and EMH Buyer – Purchases <$100k