ICS Collaborative Operating Model and Commercial Efficiency
Context
We supported the design, development and implementation of a collaborative procurement function across North East London, including the delivery of over £1 million in savings on non-pay spend, service-specific ICS category strategies, and standardised processes.
North East London (NEL) are one of the largest integrated care systems across England, formed of five Trusts, with a total third-party, non-pay spend of over £1.2 billion.
Akeso were engaged to analyse this spend and deliver £1 million in cost savings efficiencies through the collaborative model, in addition to designing a new operating model for procurement services, developing collaborative category strategies, and transforming singular service provisions into integrated delivery models.
Methodology
There were four key areas of focus in our analysis and delivery of the collaborative model:
Opportunity Assessment
Akeso developed an initial opportunity assessment analysing the ICS’s total £1.2 billion non-pay spend
60 percent non-clinical products and services
19 percent clinical products and services
21 percent on drugs
Collaborative Opportunity Recommendations
We delivered a series of collaborative opportunity recommendations, ranging from third-party spend cost reduction initiatives to yield ‘hard’ benefits, to ‘softer’ service enhancement and capability development initiatives.
Governance and Reporting Framework
We developed an overarching governance and reporting structure to track opportunities and value delivery. This included a detailed workstream and category management structure to support delivery.
Value Delivery Projects
We supported value-delivery projects including:
Cost improvement programmes (CIPs)
Procurement exercises
Strategy design
Business case development across clinical products and services, estates and facilities, corporate services, and IT, data, and systems
Impact
Across the programme we developed and implemented a new collaborative operating model, including an overarching collaborative governance structure, delivered over £1 million in collaborative annual savings, developed approved service-specific business cases, consistent ways of working, processes, standardised templates, and the upskilling of NEL team members.
Total value of commercial and procurement support secured
New model Designed and implemented a collaborative operating model and overarching governance structure
Service improvement Developed approved service-specific business cases and standardised templates
Upskilling Supported capability development and upskilling across the NEL procurement teams
