1. NSW Health Warehouse Transformation1

2. HealthShare NSW Health Shared Services Provider
HealthShare NSW is a state-wide organisation of more than 6,500 employees, established to provide high quality shared services to support the delivery of patient care within the NSW Health system. HealthShare NSW is the largest public sector shared services model in Australia.
HealthShare NSW is well positioned to pursue efficiencies and to capitalise on economies of scale, with annual recurrent savings to date in the order of $50 million per annum.
State-wide shared services provided by HealthShare NSW include:
Procurement Services
EnableNSW - assists people with a disability to live and participate in the community
Food Services
Linen Services
Service centres - Stafflink, eRecruit
Accounts Payable
Non-Emergency Patient Support
Uniforms

3. History of Warehousing Services in NSW
Through the LIP program 17 warehouses are consolidated into 5 - saving NSW health $5.4m
2013
MoH issue an EOI as part of Governments commitment of Market Contestability.
HSNSW submit EIP December 2013
2014
MoH let a selective tender with 5 proponents invited, including HSNSW.
RFT closed July with BAFO process continuing until 22 October
2015
MoH announce the successful proponent Onelink.
2016
HSNSW begin the process to transition staff as per their preferred options.
Customers begin transition as per the agreed transition plan to the new operating model

4. Warehouse Transformation Program Deliverables
The main deliverables of the Warehouse Transformation Program have been identified and will be realised progressively over three horizons
Horizon 1
Consolidation of 5 Distribution Centres to a single warehouse
Efficiencies will be achieved by reduction of resource numbers, the strategic partnership with Onelink, access to improved pick/pack technology and standardisation of inventory products 
Horizon 2
Migration of non-stock to stock items
Efficiencies include further standardisation of products resulting in increased procurement leverage and freight savings
Horizon 3
Integration of non-stock into warehouse operations
Efficiencies will be achieved by the cross docking of purchased items via the warehouse resulting in further freight savings

5. Transition Schedule 1 4 3 2 5

6. Warehouse - Operating Model

7. Project Governance
The Warehouse Transformation Customer Consultative Group was established to provide a governance structure for the HSNSW Warehouse Transformation Program across NSW Health
This group met monthly and was instrumental in the:
Escalation and resolution of high risk issues
Identification and exploration of potential savings
Considering and managing the impact of program deliverables
Ensuring the transition requirements such as order/ delivery schedules and transport arrangements were aligned to Health Agency business rules
Approval of change management activities

8. Customer Engagement initiatives during transition
Transition forums - Provide overview of expected outcomes and change
Transition Program groups - Monitor the progression of program tasks (HSNSW and customers)
Education roadshows - Face to face roadshows for requisitioner’s providing overview of future service model
Factsheets - Provided on a monthly basis with a view to provide updates and/or FAQs
Customer Surveys Provided to identify customers concerns and harvest customer feedback
Transition go live support
Dedicated intranet page
Dedicated enquiry

9. Yennora Warehouse site
Location - 81 Byron Road Yennora sqm
Orders placed in bulk quantities are picked and despatched in whole cartons
Orders placed in smaller quantities are separately picked into cardboard totes
Sterile items are separately bagged into each tote
Once pick is completed, totes are quality checked including weighed to ensure within tolerance
Totes and bulk cartons are consolidated in the despatch area, each delivery run is assigned a specific area
Deliveries are quality checked after assembly is completed before being loaded for transport

10. Key Service Issues - post transition 2016
Action / Resolution
Sterile Product Management
Developed a guideline for the Warehousing and Distribution of Sterile products
Decanting of Products
Developing a dual pick face for over 200 products
Under Utilised Totes
Updating Volumetric data in system
Trolley Quality issues
Manufacturer roll out of repair program

11. Where we are Today
Performance measures have been established and further refined.
Continue to focus on building further transparency and trust across our partnership - between HealthShare, Onelink, Customer and Suppliers
Working in partnership with Onelink to improve efficiencies in order to meet financial and productivity targets
Our Enablers:
Stock Adjustment Reporting
Centralised Issues Log
Enhanced Ticketing Service for our Customers: Dedicated team member as a central point of contact for customer inquiries and reporting of issues.
Monthly Ticket reporting for each LHD
Monthly Dashboard for each LHD
Supplier Engagement Program

12. Customer Engagement
Continue to focus on ways to improve communication and engagement with our Customers and Stakeholders.
Aim to provide information that is clear, useful and timely. Collaborating for improved service outcomes
Key initiatives undertaken: .
Enhanced Service Model for our Ticketing process (specific to Warehousing). Includes monthly reporting to LHD’s for all issues logged.
Monthly State wide CPM meetings lead by our Product Management Team
Supplier Engagement Strategy
Building in Customer Engagement/ Management across the entire team, including our Operations team
Developing additional dashboards.

13. Advantages our Partnership will continue to provide
As our Customers increase the number of products assigned out of the warehouse, the following advantages will be achieved:
Reduction of deliveries into Hospital docks from supplier (direct)
Increased frequency of product delivery down to ward level
Less admin cost for the Customer via reduced number of PO’s and invoices
Less product handling throughout the supply chain
Economies of scale in order size and delivery
Less inventory held at hospital site
Product rationalisation
Improved Supplier Engagement and Performance
Improved data quality

14. Quick Facts on our Operation
Approximately 4215 products are kept in the warehouse
Order Placement are made by LHD’s with files transferred throughout day until 9am cut off time
Orders are then consolidated and released to be picked ready for same day & next day despatch
We have approx. 560 Ship to Locations (drop off points) set up in our system.
In July 2017 we issued to 3,493 separate Deliver to Locations (internal departments).
Average of 13,100 pick-lines shipped per day
More than 9000 cartons and totes despatched each day
Up to 31 dedicated vehicles are despatched each day in addition to network freight

15. Questions ?