NHs is fleets ahead
The NHS’ willingness to embrace new technology for its vehicle procurement is making serious savings on time and money

 

It’s been said that time waits for no man, and this old adage has never been more true than within public sector organisations who are grappling with how to do more with less.

One such group, the NHS Purchasing and Supply Agency (NHS PASA) is making significant progress in using B2B-style e-commerce portals to save an incredible amount of resource, both time and money, in going about its day-today operations.

In fact, NHS PASA’s approach to its car leasing portal has proved such a success that it has just been relaunched to allow it to serve the whole of the UK public service fleet.

Janett Cowburn, transport category manager for NHS PASA, explains: “Where time is always in short supply, this new technology is a real winner for suppliers and users alike. Compare this new website to a standard system which can involve getting nine written quotes from suppliers, possibly every time a car is leased, and then you realise just how beneficial it will be.”

The website was developed and implemented by NHS PASA’s transport and e-procurement teams, and it complements and supports the 2007 pan-government lease car and car-derived vans framework. It has been estimated that it will save the NHS nearly £10m over the next three years.

Further to this, there is also the valuable time saved within the organisation and administration of car leasing. This new pangovernment framework approach could represent a major advance in car leasing for the UK government, claims Chris Gledhill, managing director of software developers PDMS Limited, which is the firm behind the new website. He says: “This is a perfect example of how internet technology can be used to very good effect in the public service.”

Two main sources of data are used—CAP Motor Research data on used and future residual values and monthly ‘rate books’ from lease car suppliers are uploaded directly to the site. The new site allows the user to access real time car lease prices by regularly polling suppliers. This means quotes on additional combinations of leasing options are available, such as terms and service features. CAP data is automatically updated each time it changes.

NHS PASA e-Catalogue manager Kevin Girling continues: “The framework provides the public sector with access to very competitive terms and discounts of about three per cent. Some models, such as the fuel efficient hybrid Toyota Prius, are available at much greater discounts.

“NHS PASA alone will save an extra one per cent on top of our already very competitive lease rates.”

Beyond price, the website also provides information on a range of criteria including manufacturer, model, vehicle type, fuel type, transmission and CO2 emissions allowing for requests for specific functions. Data is kept secure and is accessed using a login identity.

Peter Miller, from NHS PASA’s e-Procurement team, has been involved first hand with procuring fleet vehicles through the new site, and he comments: “This new website provides a level playing field for vehicle leasing suppliers to the entire public sector. The range of vehicles, options and lease terms and conditions is vast, but are all catered for so that in a matter of seconds purchasers can receive a quotation from all participating suppliers.”

Other benefits include the reduction in waste generated by getting paper quotes.

Similar web technology has been employed to help the NHS to drive down the cost of buying pharmaceuticals. An on line catalogue of more than 20,000 products gives NHS pharmacy staff information about pending price increases and decreases, so helping them decide when to buy and leading to cost savings. It shaves costs off the £2.2b a year the NHS spends on pharmaceuticals – of which £1.7b goes on branded pharmaceuticals, and it is hoped that the new vehicle procurement methods will have a similar effect.

The work with online catalogue scooped PDMS and NHS PASA an award from central government for excellence in procurement.

 

 

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