Public Services Education

Purchasing review

Preparing for radical change in the organisation structure and management of purchasing, supply management, and strategic procurement.

A major NHS acute hospitals trust was facing the initial stages of a substantial PFI scheme and concerned to ensure that it complied with the requirements of a government green paper concerning the management of supplies.

Sterling was commissioned to review the organisation and management of the Trust’s purchasing activities to enable the Trust to decide how best to organise and manage the area.

We collated and analysed expenditure data, policies, procedures, and key performance indicators.

The conclusions related to objectives, responsibilities, management, and performance.

• We formulated a procurement strategy for the Trust based on explicit objectives,
• designed an organisation to enable the strategy to be implemented,
• specified the roles needed in the organisation and produced the specification for a new appointment - Head of Procurement
• defined the responsibilities associated with all aspects of purchasing and supplies, specifying the management information needed to manage the function
• advised on the training needs of the employees involved with supplies
• highlighted the requirements of the supporting systems to ensure that the function could work efficiently and effectively
• identified the potential for cost savings and proposed appropriate targets.
The Trust accepted and implemented our recommendations.

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Sterling Management Consultants based in Worcester West Midlands