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Ethical Procurement at NHS Supply Chain

Ethical Procurement at NHS Supply Chain . ETI Conference 8/12/2010. AGENDA. NHS Supply Chain Company overview NHS Supply Chain Ethical Agenda Questions. Team structure. Martin Lee MD Supply Chain & Transformation. Alfreton Chester Runcorn. Clare Macintosh Sustainability Manager.

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Ethical Procurement at NHS Supply Chain

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  1. Ethical Procurement at NHS Supply Chain ETI Conference 8/12/2010

  2. AGENDA • NHS Supply Chain Company overview • NHS Supply Chain Ethical Agenda • Questions

  3. Team structure Martin Lee MD Supply Chain & Transformation Alfreton Chester Runcorn Clare Macintosh Sustainability Manager Colin Stuart Sustainability Analyst Sophie Cros Sustainable Procurement Manager Jane Bingham Senior HRBP & CSR Lead

  4. NHS Supply Chain.. Our strength is in our scale • A 10 year contract operating as an agent forthe NHS Business Services Authority (NHSBSA), providing long term security of supply to the NHS • NHS Supply Chain’s commercial return is capped ensuring 80% of savings flow back to trusts • all NHS Supply Chain’s financial transactions are transparent to the NHSBSA • powered by DHL – the global leader in logistics, bringing supply chain excellence to the NHS and reduced supply chain costs • targeted to deliver £1 billion savings to NHS by 2016 • providing contract coverage compliant to EU regulation for £5 billion NHS non-pay spend, reducing legal risks to trusts • significant investments in infrastructure since 2006, saving NHS from investing in non core areas. • “We are your national service”

  5. The NHS Supply Chain Sustainability Agenda What is Sustainable Development within NHS Supply Chain? ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’ we recognise the need to join up economic, social and environmental goals Aim to be a leading organisation striving for excellence in our environmental performance We have 3 key areas of activity Sustainable Operations Community and Social Sustainable Procurement We are governed by the Sustainability Memorandum of Understanding with the NHS BSA and also by DHL targets e.g. Go Green One of NHS SC 4 Pillars (Customer proposition)

  6. Our Aim NHS Supply Chain aims to reduce as far as possible, adverse environmental and social and economic impacts occurred during the life cycle of products procured and ensure sustainable value for the NHS. • Security of Supply – organisations operating outside legal limits run the risk of closure. • Quality of Product – Sweat shops / child labour / poor working conditions / long working hours do not support the production of quality products. • Brand reputation - Part of our customer value proposition

  7. What is Sustainable Procurement? Definition A process where an organisation meets it procurement needs whilst considering external social, environmental and economic factors.

  8. What is a social factor? Health & Safety Child Labour Working Hours Forced & Bonded Labour Discrimination Living Wage Harsh Treatment Casual Labour Freedom of Association

  9. Stakeholders Code of Conduct Policy Policy Alignment DHL MoU DH BSA Sustainable Procurement Forum Targets Monitoring ETi NHSSC Base Code BMA Ethical Trade Working Group Advice, training and resources Public Patients Trusts Social interest Social interest Policy Alignment Portfolio Value Proposition

  10. Sustainable Procurement Policy Flexible Framework Supplier Code of Conduct Business Case Sustainable Development Strategy Sustainable Procurement Policy Baseline Assessment Memorandum of Understanding NHSSC SD Annual Report SPROUT T&C’s Contract Award Govt Minimum Standards

  11. SPROUT Questions included: - Are there concerns over labour standards within the supply chain - Are there concerns over broader ethical issues (e.g. bribary, human right, etc) within the supply chain Risk scoring per contract

  12. Supplier Code of Conduct • Child Labour • Forced Labour • Compensation and Working Hours • Discrimination • Laws and Ethical Standards • Health & Safety • Business Continuity Planning • Improper Payments/Bribery • Environment • Business Partner Dialogue

  13. Baseline Questionnaire • Confirmation of receipt of Supplier Code of Conduct • Confirmation of compliance • Ethical Policy Questions • Environmental Policy Questions • Manufacturing Locations • Assessment of Supply Base • Supplier Action Plan • Improvement Action Plan

  14. Fairly traded product ranges • 1st Fairtrade garment to the NHS introduced in May 2010 & coming soon: doctor coats, nurse tunic, nurse dress… • Faitrade coffees • FSC paper • Importance of making it visible to our customer with our flag for “ethically sourced product”

  15. Thank You for your attention Sophie Cros Sustainable Procurement Manager Sophie.cros@supplychain.nhs.uk Tel: 01244 582839 General Sustainability@Supplychain.nhs.uk Keep in touch

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