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NHS trusts should replace inefficient inventory management processes and improve patient level costing reporting to achieve the Department of Health’s (DH) procurement efficiency savings target. This is the advice from leading business applications and services provider, Advanced Business Solutions (Advanced).

The DH has committed to generating efficiencies of £1.5 billion to £2 billion by 2015-16 in its latest eProcurement strategy, which intends to help NHS trusts gain greater control over non-pay expenditure. Potential savings of up to £8,000 per bed and between £3 million and £5 million for a 600-bed hospital could be realised through better traceability of stock items and improved procurement performance*.

Dean Dickinson, Managing Director of Advanced Business Solutions (Public Sector & Enterprise Division), comments, “While NHS trusts are making progress some still have to achieve better value from their supply chain if the DH’s ambitious targets are to be realised. Key to this will be improving inventory management and visibility of spend in order to minimise unprofitable service lines and purchasing anomalies.

“Finance departments and clinicians will only succeed if they have the right technologies in place to automate the processing of accurate and real-time procurement data.”

Patient-level resource management (PRM) solutions, integrated into financial management systems, help to facilitate effective patient-level costing, resource analytics and stock management. By replacing manual, paper-based processes, PRM systems ensure NHS trusts can glean real-time stock information and correctly forecast inventory requirements to achieve efficiencies by optimising usage, reducing stock holding and unnecessary waste.

PRM systems also provide instant costing and usage information on product lines. This ensures greater financial control over product requisitioning and enables clinicians to analyse the cost of all items used for surgery to improve the accuracy of patient costing.

NHS trusts should also consider implementing modern integrated spend analysis solutions into their finance system. Spend analysis systems enable staff to instantly identify price variances, non-compliant ordering and unmatched invoices while monitoring supplier performance.
Advanced’s reporting metrics also compare contract vs non-contract spend, category spend analysis and highlight differential prices for the same products or service to improve information visibility and purchasing decision making.

Dickinson adds, “PRM and spend analysis solutions can deliver hundreds of thousands of pounds in annual efficiency savings by replacing manual inventory management processes and providing a unified view of spend. These solutions also assist NHS trusts to adopt a more strategic approach to purchasing to keep costs under control and free up vital funds which can be reinvested into improving frontline care.”

-ENDS-

Notes to editor

*Taken from the Department of Health’s report entitled NHS e-Procurement Strategy in May 2014

About Advanced Business Solutions www.advancedcomputersoftware.com/abs

Advanced Business Solutions (Advanced) provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. Advanced prides itself on getting close to its customers by understanding their businesses and responding to their evolving needs.

Advanced’s software systems comprise core accounting/financial management, procurement, supply chain management, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions to extend the value and effectiveness of the finance, human resource and payroll departments. Management information systems for school and academies are also provided through Advanced’s subsidiary, Advanced Learning. All solutions can be delivered as a managed or bureau service.

Customers are from both the public and private sectors and include Companies House, Newcastle City Council, NHSScotland, Norfolk Constabulary, Edge Hill University, WH Smith, Royal Bank of Scotland, Aer Lingus, National Express Group, DFS and RSPB.

Advanced Business Solutions is a division of Advanced Computer Software Group plc, a leading supplier of software and IT services to the health, care and business services sectors.

Press Contacts:
Angela Mycock and Ben Carey, Advanced Computer Software Group
pr@advancedcomputersoftware.com
+44(0)1625 856 513

This press release was distributed by ResponseSource Press Release Wire on behalf of Advanced Computer Software Group LTD in the following categories: Health, Public Sector, Third Sector & Legal, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.