Monday, 7 April 2008

Save us!

Dry technical work related stuff. Having trouble sleeping……..?

April is another one of those fun times (are there ever any other type?) in the world of Health Service purchasing. Being the start of the new financial year it’s time to submit the departmental ‘workplan’ for the year. Contracts to be let, opportunities to investigate and savings targets to be received from on high.

It would of course make sense to determine what the potential savings are using market intelligence and from the opportunities available. However it works the other way around. You are told that you have to save £1.5m and it’s up you to find the projects to fill the gap. Which after a few years of concerted contracting activity over a wide range of product groups isn’t as easy as it sounds as you hit diminishing returns pretty quickly

I pointed out to my lords and masters a few weeks ago that considering the inflationary pressures in the economy we would be doing pretty well to maintain current costs into the new contracts this year. I went on to say that perhaps the really way to improve cost efficiencies is to look at supply chain issues, are we buying and stocking things in the most efficient way possible. Are they the best value alternative available? Are we using products correctly to reduce unnecessary wastage or do we need them at all?

Coming from a private sector manufacturing background these are basic questions to be asking but the response was pretty blank. ‘Yes Grendel, that’s something we should look at. But what about the price of these ink jet cartridges?’

But the real fun starts when you try to define what a saving is. Is it the reduction of the price paid for a thing or a service? Well partially but of course it’s not always that simple.

The term 'Cash Releasing savings' do cover this.

But then you enter the nebulous world of 'Cost Avoidance Savings'. This is where a price or the increase of a price has been negated or delayed through negotiation or some other action.

There are other categories of saving too but two is enough for now.

Of course the finance people, although pretending to have an interest in all of the savings types are really only interested in those that allow money to be reclaimed from a budget. The 'Cash Releasing' type. It’s a shame that they don’t view Cost Avoidance in the same way. You could ask a friendly supplier to prepare a list price for a £1 widget at £1,500,001. One purchase order later and hey presto that’s the target achieved, off down the pub then!

The other thing that they do is once a contract has been awarded they will remove the ‘savings’ from a departments budget there and then. Which is also a bit of a nonsense. You will never really know what the true expenditure and savings figure are until the contract is finished. They may end up buying lots more than expected of whatever it was during the contract period and naturally the savings figure will go up but so will the expenditure. So they may end up being over spent anyway. They may buy less so although not overspent the savings performance is shot to pieces. But either way the money stripped from the budgets just after the contract has been let is unlikely to bear much relation to either.

And where do the piles of saved cash go? Well it’s often used to subsidise the running of the overspending departments. Sometimes this is due to inefficiency, unpredictable demand but quite often rather bad budget setting.

But being a hospital you can’t just close departments down. However the departments who do achieve financial balance and make savings sometimes get a little disgruntled and ask what ‘the point is’ when I come a knocking to discuss their views of potential tendering opportunities. If they put in the time and effort they would occasionally like to directly get some of the benefit.

And of course in reality this means that the savings aren’t really that at all. It may reduce any general overspend but unless the budget setting is done on a more scientific basis or processes and practices improved then any money saved will just be thrown back to support the status quo rather than being available for general service improvement. Which seems both a shame and the wilful swapping of carts and horses.

Who in their right mind would through additional money at a service and then hope to reform it. …. Oh!

But fear not dear taxpayer, the target will probably be reached in one way or another. The recent increase in the list price of Inkjet cartridges is shocking.

1 comment:

will said...

A片,A片,A片,A片,A片,A片情趣商品,情趣用品,情趣用品,情趣,情趣,情趣用品,情趣商品,情趣用品,情趣,情趣,情趣用品,情趣商品,情趣用品,情趣,情趣,情趣用品,,情趣,情趣用品,情趣用品,情趣用品,情趣用品.情趣,情趣,情趣,情趣,視訊聊天室,情趣,情趣用品,情趣,情趣用品,情趣用品,情趣麻將,台灣彩卷,六合彩開獎號碼,運動彩卷,六合彩,遊戲,線上遊戲,cs online,搓麻將,矽谷麻將,明星三缺一, 橘子町,麻將大悶鍋,台客麻將,公博,game,,中華職棒,麗的線上小遊戲,國士無雙麻將,麻將館,賭博遊戲,威力彩,威力彩開獎號碼,龍龍運動網,史萊姆,史萊姆好玩遊戲,史萊姆第一個家,史萊姆好玩遊戲區,樂透彩開獎號碼,遊戲天堂,天堂,好玩遊戲,遊戲基地,無料遊戲王,好玩遊戲區,麻將遊戲,好玩遊戲區,小遊戲,電玩快打情趣用品,情趣,A片,AIO,AV,AV女優,A漫,免費A片,情色,情色貼圖,色情小說,情色文學,色情,寄情竹園小遊戲,色情遊戲,AIO交友愛情館,色情影片,情趣內衣,情趣睡衣,性感睡衣,情趣商品,微風成人,嘟嘟成人網,成人,18成人,成人影城,成人圖片,成人貼圖,成人圖片區,UT聊天室,聊天室,豆豆聊天室 ,哈啦聊天室,尋夢園聊天室,聊天室尋夢園,080苗栗人聊天室,080聊天室,視訊交友網,視訊借錢,黃金,黃金回收,黃金價格,黃金買賣,當舖,中古車,二手車A片,A片,成人網站,成人影片,色情,情色網,情色,AV,AV女優,成人影城,成人,色情A片,日本AV,免費成人影片,成人影片,SEX,免費A片,A片下載,免費A片下載,做愛,情色A片,色情影片,H漫,A漫,18成人,情色電影,自拍,成人電影a片,色情影片,情色電影,a片,色情,情色網,情色,av,av女優,成人影城,成人,色情a片,日本av,免費成人影片,成人影片,情色a片,sex,免費a片,a片下載,免費a片下載,成人網站,做愛,自拍A片,A片,A片下載,做愛,成人電影,18成人,日本A片,情色小說,情色電影,成人影城,自拍,情色論壇,成人論壇,情色貼圖,情色,免費A片,成人,成人光碟18成人,成人聊天室,成人電影,成人圖片,成人貼圖,成人圖片區,成人影片,成人文章,成人小說,微風成人區,成人交友,成人文學,成人漫畫,成人遊戲,免費成人影片 ,成人論壇,愛情公寓,情色,色情網站,情色A片,色情小說,情色文學