Content

1. Introduction
2. Case Analysis
3. Achievements and Professional
Purchasing
4. Findings
5. Summary
6. Conclusion
7. Reference
Introducti
on

British Telecommunications plc

(BT)

The Pennine Acute Hospital NHS Trust

(NHS)

Welsh Procurement Initiative Team

(WPIT)
Introduction
British Telecommunications plc
(BT)

 BT is the world’s oldest communication company, with a

direct line of descent from the first commercial
telecommunications undertaking in Europe.
Introduction
The Pennine Acute Hospital NHS
Trust
(NHS)

 The Pennine Acute Hospital NHS Trust is a “National Health

Service” Trust established on April 1st 2002 to manage
hospitals across the north and east of Greater Manchester in
England.

 David Scott – The supplies manager of The Pennine Acute

Hospital NHS Trust.
Introduction

Welsh Procurement Initiative Team

(WPIT)

 Welsh Procurement Initiative Team (WPIT) at the National

Assembly for Wales, the role is to influence spending
throughout the Welsh public sector Procurement.
Case Analysis
BT
 Many companies are taking corporate social responsibility
(CSR) more.

 The procurement CSR strategy has three stands :

environment, human right and supplier diversity.

 BT moved towards aligning the procurement CSR strategy

and relay this strategy down to their supply chain.
Case Analysis
NHS
 The Pennine Acute Hospital NHS Trust carried out a project
for purchasing of medical equipment by looking for cheaper
and better products through “Tendering”.

 12 NEW endoscopes were bought with a saving of 37% on

the current supplier’s price.
By executing the same purchasing method in the following
year, NHS had saved ￡ 300,000 on the equipment.

 David Scott, the supplies manager of NHS, extended his

findings in purchasing to other regions and a consortium
was formed and saved
a combined total of ￡ 1.5 million, or about half their
spending on the equipment over 7 years. Now the project is
being offered to trusts nationwide in the UK, with a saving of
￡ 15 million a year.
Case Analysis

WPIT
 It identified real saving of 7.2 million - one
success was to set up a single public-sector
contract for telecommunication.

 The National Procurement website contains

details of more than 8000 supplier and it opens
up tender opportunities to the Welsh Public
sector.
Achievements and
Professional
Purchasing
Award:

The best contribution to corporate responsibility category and

receiving the overall CIPS Supply Management Award 2003
Achievements and
Professional
Purchasing
1. For the Environment
 BT finds continuous improvement far more effective than
demanding immediate

2. Cross-cultural judgment
 Balance the national laws of supplier host countries and
European client.

 Not to impose western standards that can be different to

local expectations.
 Achievements and
Professional
Purchasing

3. Questionnaire before awarding the contract

 BT requires all their potential suppliers to complete a detailed
questionnaire at tender stage and then take accounting of it
when awarding contracts.

4. Audit on Supplier / Sub-suppliers

 All new suppliers have to sign a contract clause to allow BT to
audit its supplier’ suppliers and their sub-suppliers.
Achievements and
Professional
Purchasing
5. For the Human Rights
 BT requests suppliers to sign to a corporate agreement
taking responsibility for managing human rights within
their supply chain.

 BT found a Sei Lankan manufacturer several tiers down

the supply chain breaching corking partices, including
extreme working hours and proof staff treatment.

6. Contribution
 BT extends CSR within their business. It can make more
companies to take the CSR, thus continuous improving
the environment, human rights and supplier diversity.
Achievements and
Professional
Purchasing
Award:

 Winner CIPS Purchasing and Supply Management

Professional of Year 2003 - David Scott (individual)

 The Pennine Acute Hospitals NHS Trust / Public sector –

Local
Achievements and
Professional
Purchasing
1. Long and intensive preparation
 Examining the record for the supplier of medical and
surgical items in the pass 27 years.

2. Instruction in skills and methods

 Testing the market by putting the contract out to tender.

 Excellent management and team skills to high

presentational quality and clear, tangible delivery.

 By organizing meetings with medical and nursing staff,

experiences and products are openly discussed. This
encourages networking, sharing of best practice and the
confidence to try unfamiliar products.
 Achievements and
Professional
Purchasing
3. High standard of achievement and conduct
 Throughout this project, Scott managed the change by
organizing meetings with medical and nursing staff.

 Scott decided to extend his findings to other trust in the North

West.

 Project had been extended from regional deal to Nationwide

deal. Now the project is offered to trusts throughout the UK
and is being taken up by the NHS Purchasing and Supply
Agency (NHS PASA) which is an executive agency of the
Department of Health. They work to ensure that the NHS in
England makes the most effective use of its resources by
getting the best possible value for money when purchasing
goods and service.
Achievements and
Professional
Purchasing

 Scott had demonstrated an approach to analysis and

problem-solving.

 Scott had stimulated a change throughout the sector and it

was a continuous improvement in purchasing.
Achievements and
Professional
Purchasing

4. Social Responsibility
 They always work for their raison d’etre in the NHS
“to get the best for patients”.

 With the new equipment, less maintenance is

needed. There is fewer cancelled appointments as
the new equipment is more reliable. The slimmer
design of new equipment is more comfortable for
patients.
Achievements and
Professional
Purchasing

1. Contribution

 To the health service purchasing: As a model of

professional purchasing for other public sectors.

 To the society: Improve the quality of service to the

public.
Achievements and
Professional
Purchasing

Award:

 Winner public sector – central National Assembly for Wales

Achievements and
Professional
Purchasing

1. Long and intensive preparation

 Establish in Nov 2001, Welsh Procument Intiative Team

(WPIT) at the National Assembly of Wales.

 Wales increased co-operation with domestic products, it

would deliver better value for money and included 42
recommendations.
Achievements and
Professional
Purchasing

2. Instruction in skills and methods.

 The public sector has modernized and skipped the

formality process.

 Making public money go further, and act as a catalyst for

change.

 This was a board and innovative project on an impressive

scale.
 Achievements and
Professional
Purchasing

3. High standard of achievement and conduct

 Training was set up for purchasers at half the cost of London-
based courses. More than 200 people had taken the course.

 Political support has also been crucial to the WPIT.

4. Social Responsibility
 Helping people to achieve real and tangible results.
Findings

 In WPIT & NHS, we note that they are using bulk purchasing
strategy to increase their purchasing power when dealing
with the supplier so they can save more money.

 In WPIT & NHS, we also note that they are willing “open
information sharing” to share the information and
technology between their suppliers. They can select the
good suppliers and good quality product from the
tendering.

 (a) In BT, there are policies and procedures to evaluate

and address human rights performance within their supplier
and contractors, including monitoring systems and results
of monitoring. They can affect their supplier and
contractors in accordance with the labour law. The labour
can earn equality wages and protection.
Findings

 (b) In WPIT, they are using bulk purchasing strategy

which is not only saving money but also rendering the
public in education, hospital, welfare, military etc.

 (c) In NHS, they are using bulk purchasing strategy which

main objective is not only achieving purchasing saving, it’s
also important to help the patient and their family to reduce
their encumbrance.

 In above three organizations, we note that their main aim is

using their power to help different classes in the society.

 (a) In the Environment, we note that BT can use their

power to affect their suppliers to use the re-cycle materials
to make their product. Then, the supplier can reduce the
risk of pollution.
Findings

 (b) In the Continuous Improvement, WPIT can provide

training course for their staff. Their staff can learn more
special skill to contribute their country.

 (c) In the Continuous Improvement, NHS Purchasing &

Supply Agency can provide the training course to nurse and
hospital staff. Nurse and staff have a skill to use the new
medical equipment easily.

 In WPIT & NHS, they are the same to provide training to

their staff. Then, their staff will be more skillful and can
provide good service to their consumer.
Findings
 Summar
y
Are we able to make it in Hong Kong?
 YES, definitely!
 Purchasing Consortium
Example: Universities in Hong Kong have joined together in
purchasing Microsoft software.
 Example
Corporate Social Responsibility
Example: Cheong Kong Holdings has established the charitable fund of
Li Jiacheng rendering the public (educational and medical)

 李嘉誠教育
機金

 李嘉誠醫療
機金
Example
 Example: Starbucks is taking several measures to integrate CSR
into many aspects of their business.
Example
Example: Govement should be set some safegude to protect the
worker, e.g. lower salary.
Conclusion

 By studying these 3 cases, we are able to understand more about

the role of purchasing and supply in business, what is so-called
“professional professional purchasing”, how it works and affects the
business and community.

 It is value-added to all of us in our career, be it in logistic or trading

basis.

 In these case let us have more to increase in additional to

purchasing the interest

 Though this assignment was finished under black rainstorm and

typhoon, we enjoyed very much in discussions and sharing opinions.
This assignment cannot be done without teamwork and all of us are
now expecting a good result.