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“An incredible responsibility”: Procurement and sustainability at Procurex Scotland 2019

One month on from Procurex Scotland 2019 and the 15th Annual Scottish Government National Procurement Conference, held this year on 29 October at the SEC Glasgow, we look back at some of the major themes of the day. The event saw some of the key current and future trends for procurement discussed in depth, and among the most prevalent themes was environmental impact.

Climate change and environmental impact are issues that are increasingly being addressed in many aspects of business as well as people’s everyday lives. Given the increasing focus on social value in procurement, and the awareness that how organisations choose to spend their money can have major impacts, it is perhaps not surprising that the role procurement can play in combating climate change has increasingly come to the fore.

Managing resources

Kate Forbes MSP

Kate Forbes MSP

Kate Forbes MSP, Minister for Public Finance and Digital Economy, began the Scottish Government National Procurement Conference with a keynote address focusing on “the power of procurement.” Introduced by the day’s chair, Scotland Tonight’s Rona Dougall, as “having long been a champion of the environment,” Ms Forbes stressed that “we have a collective responsibility to our social and economic wellbeing.”

Her ministerial address emphasised two key message that were to be repeated throughout the day: that the purchasing decisions procurement leaders make have a real power to influence change; and that contributing to local economies, addressing global issues like climate change and long-term business growth are not contradictory aims. Ms Forbes pointed to ideas such as challenging the “need to buy” – as reduction in resource consumption contributes to both environmental and economic sustainability.

Malcolm Harrison, Chief Executive Officer at the Chartered Institute of Procurement and Supply (CIPS), also discussed sustainability and environmental issues in his speech on some of the most pressing issues for supply chain management. “We as procurement professionals have an incredible responsibility to look at how we use limited resources,” Mr Harrison said, once again emphasising the power that procurement professionals have to influence change. However, Mr Harrison also urged attendees not to “get caught up in the plastics debate.” While not attempting to downplay the environmental impact of plastics, particularly for oceans, Mr Harrison was keen to suggest that there are areas where plastics are in fact essential. He cited transport of time-sensitive medical products as an example of “a good use of plastics,” suggesting that the aim should not be to remove plastics altogether from supply chains, but to be critical and reflective of how they are used – reducing rather than eliminating their use. Mr Harrison concluded that, in light of environmental concerns as well as other ethical issues facing procurement, “this is a challenging environment for the profession – but it’s an exciting time.”

To address sustainability concerns, and understand how scarce or impact-heavy resources are used throughout their supply chains, it is important that public sector buyers have greater visibility of their entire supply chains. Supporting buying organisations to manage every stage of the tendering process and supply chain in a single solution, Delta eSourcing allows for greater end-to-end visibility of supply chains, giving greater transparency. Learn more about Delta here.

Showcasing success

Reiterating Kate Forbes’ earlier address, Caroline Colliston, Chair of the Business Leadership Group of the Scottish Business Pledge, made clear in her talk at the Scottish Government National Procurement Conference that “sustainability and long-term business growth are not competing objectives.” Ms Colliston used the image of a ripple becoming a wave, noting that small changes can add up to wider trends. Her talk pointed out that business decisions with an environmental impact do not only include large purchasing decisions, but also choices such as which hotels are booked for business travel – if travel is necessary.

Kersti Berge

Kersti Berge at the National Procurement Conference

Rounding off the main talks at the Scottish Government National Procurement Conference was a presentation from Kersti Berge, Director of Energy and Climate Change at the Scottish Government. Ms Berge began her talk by “going back to the science,” showing several graphs that illustrated the scale, speed and severity of climate change and “proving conclusively that human activity is a big factor.” Ms Berge also emphasised that climate change is not a remote issue for procurement, with the widespread wildfires in California in 2018, and Australia in 2019, causing billions of dollars’ worth of damage. Ms Berge pointed out that, for example, insurance costs will rise dramatically for businesses with the increasing likelihood of extreme weather events.

Although Scotland is already world-leading in terms of taking steps to tackle climate change, thanks to Scottish Government legislation, Ms Berge said that, for the sake of business as well as the wider world, “we all have a role to play.” She pointed out that annual procurement spend in Scotland adds up to £11bn, and so can have a huge influence on the wider agenda. Inviting organisations to “mainstream” their successes, Ms Berge suggested procurement leaders “start early and think strategically to reach people who can influence,” to help cascade change throughout supply chains. She pointed out that there are many ways that small strategic changes can have a wider influence – for example, reducing the number of deliveries through reduced demand for goods or services means fewer vehicles on the roads and, in turn, reduced emissions. Although Ms Berge ended with a stark warning about the dangers of climate change for potential future generations, she also encouraged organisations to realise the scale of influence they can have – inviting them to “showcase your success.”

Attendees at Procurex Scotland 2019

Procurex Scotland brought together around 1500 buyers and suppliers

Early engagement – beginning conversations ahead of the formal tendering process – can help organisations share their successes and establish a position as a thought leader, even potentially influencing the factors that buyers consider in specifications. These kind of broader discussions than might be possible during the tendering process are made easier through Ingenium, the public sector data community containing every UK public sector leader, organised by job function and sector. Click here to learn more about how you can begin conversations to share your organisation’s values and showcase your success with the public sector.

As the major political parties campaign for the UK General Election on 12 December, climate change, sustainability and energy efficiency are high on the agenda for all parties, with several making commitments as to the year by which the UK should be carbon neutral. To find out more about the parties’ election manifesto pledges, and what they mean for business with the public sector, download the latest edition of our new report, ‘The Public Sector Market in 2020 and Beyond: Opportunities for Smart Suppliers.’

Further reports on other key themes and trends discussed at Procurex Scotland 2019 and the Scottish Government 15th National Procurement Conference will be coming soon on the BiP Solutions site.

New digital paths for health, work and business a major focus within the NHS Long Term Plan

Hospital working working on tablet computer

Earlier this month, the NHS published its Long Term Plan. The Plan details how the £20.5 billion budget settlement for the NHS, confirmed in the summer of last year, will be spent over the next five years.

For patients, the Plan focuses on delivering ‘the best start in life’ for everyone, community health, and allowing people to age well. From the perspective of the NHS itself, the Plan will focus on driving efficiency, both in terms of organisation and affording individual workers easier and more effective working practices.

A major focus of the Plan concerns digital transformation. This will include such innovations as the NHS App, allowing for a single way for patients to identify themselves across a range of local and national services.

Associated apps and digital solutions will no doubt be embraced wholeheartedly by a range of NHS institutions, as a recent iGov Survey found that 72% of respondents from the NHS would like to deliver patient health apps as part of their Wi-Fi solution, while more than two-thirds stated that patient access to online appointment bookings will be beneficial.

At BiP Solutions, we recognise both the challenges and opportunities presented by digital transformation facing healthcare buyers and suppliers today.

In fact, our most recent report considered the digital trends and innovative approaches playing a significant role in today’s NHS through boosting efficiencies and, crucially, saving lives. You can access a complimentary copy here.

It’s no secret that the NHS is a hugely complex organisation, with hundreds of separate but connected organisations, and navigating the ways they link, share information and work together can sometimes be difficult for NHS staff, let alone those seeking to work with NHS trusts. The digital transformation element of the Long Term Plan promises to ease the burden of the NHS’ complexity for patients and staff.

If you’re looking to cut through the difficulties of understanding how NHS organisations are related and talk to the right person to do business with, BiP Solutions’ Ingenium community can help. Our data community holds contact details for all senior decision-makers throughout the NHS, which we combine with a deep understanding of the NHS’ structure to deliver relevant and engaging digital marketing campaigns.

The Long Term Plan will reshape many NHS working practices, the ways patients interact with the NHS, and the way that business is done too. For businesses, it’ll therefore be important to keep up-to-date with the latest developments, as changes are set to happen throughout the NHS supply chain. An easy way for businesses to ensure they’re staying abreast of the latest changes is through Tracker’s business intelligence modules which offer an easy one-stop, complete source of information on public sector procurement.

Additionally, a major element of the Plan’s overhaul of working methods will be further innovations in terms of technology and equipment needed. For example, the Plan’s stated aims include new ways of managing and storing data, as well as novel methods of treating patients and providing care. With innovation a primary concern, it’s important that businesses are able to join conversations with NHS buyers earlier, to ensure that they can gain a real understanding of the requirement – or even shape discussion about the solution needed.

In fact, Gareth Rhys Williams, Government Chief Commercial Officer and Non-Executive Director at the Crown Commercial Service (CCS), said at our recent Procurex Scotland event that “early engagement is absolutely crucial.” He also noted that both buyers and suppliers should be encouraged to engage earlier to get the best out of a procurement exercise:

“If we don’t engage with the market, we won’t understand what the market can offer or what suppliers have developed for a different buyer elsewhere in the country. If we do not talk to suppliers then we miss out on opportunities and we will end up trying to procure something that they may not be able to deliver.”

How we can help

As mentioned before, Ingenium can put businesses in touch with key NHS stakeholders ahead of the tender process, helping conversations happen earlier.

Additionally, Tracker aids early engagement, thanks to easy viewing of upcoming contract renewals and recurring projects through ‘Market Leads’, meaning businesses can discuss these needs ahead of tender publication. Meanwhile, Tracker’s ‘Spend Analysis’ allows for an overview of what organisations are spending and with whom – helping businesses to shape future discussions by understanding how individual NHS trusts spend and work.

The transformation of the NHS via the Long Term Plan looks set to radically overhaul the way that the NHS, patients and businesses interact. We look forward to working digitally together with the NHS as the Plan unfolds.

Further reading

View the Long Term Plan here.

Access our latest Healthcare market report here.

To find out more about our solutions, please visit: www.bipsolutions.com

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