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Title / Title: PROCEDURE NOTE - Sign Off of SavingsVersion: 2
Reference Number: PEC2
Supersedes / Supersedes:
Version: 1
Originator or modifier / Originated By: Linda Bailey
Designation: Head of Purchasing
Modified by:
Designation:
Ratification / Referred for approval by: Procurement and E-Commerce Department
Date of Referral: 4th November 2014
Application / Procurement and E-Commerce Staff (Purchasing Section)
Circulation / Issue Date: 12th May 2016
Circulated by: Head of Purchasing
Review / Review Date: 3rd November 2017
Responsibility of: Head of Purchasing
Date placed on the Intranet: / Please enter your EqIA Registration Number here:
Refer to section 8: Equality, Diversity and Human Rights Impact Assessment
CONTENTS
Section / Contents / Page1 / Procedure Guidance Notes – Procedure for Sign off of Savings / 1
Appendix 1 / Procurement & SupplyChain Project Impact Statement
PROCEDURE GUIDANCE NOTES
Procedure for Sign Off of Savings
- Upon completion of a Project or Award of a Contract that has delivered either a Cash Releasing Efficiency saving or Cost Avoidance saving a Procurement and Supply Chain Project Impact Statement must be raised and completed by the Purchasing Lead (Appendix 1).
This form must be counter signed by the budget holder and the Directorate Accountant. A confirmatory e-mail from both will suffice where it has proved difficult to obtain the signatures. This should be attached to the back of the savings form.
Savings generated for more than one Division should be referred to Procurement and E-commerce Senior Management Team for a decision.
The appropriate budget code should also be entered on to the form.
All savings generated through the Supply Chain route must be countersigned by Head of Supplies and Purchase to Pay.
The original counter signed form to be filed in the Master Savings file under the section “Authorised Savings”.
A copy of the countersigned form is then passed to the Senior Purchasing Manager for entry on to the local Savings Database.
A copy of the completed forms awaiting sign off should be filed in the Master Savings File under the section “Pending Savings”.
Savings under £1,000
To be signed off by Procurement and E-Commerce Senior Management Team.
NHS Logistics savings to be signed off by the Head of Procurement & E-Commerce/Head of Purchasing if not available.
Non-Stock savings to be signed off by Head of Purchasing – Head of Procurement & E-Commerce/Head of Supplies & P2P if not available.
Rejected or Missed Opportunity Savings
A copy of the savings form should be filed in the Master Savings file under the Section Rejected/Missed Opportunities with a brief explanation of the reason for rejection.
Savings and Contract Management
The Procurement Department is developing systems to ensure that forecasted savings are delivered. This includes a retrospective review of volume against forecast along with product/supplier selection arrangements that restrict unauthorised/unfunded new product entry.
The main strategies being deployed are:
1. Procedures for new products and new suppliers.
2. Non catalogue requisition verification prior to ordering.
3. Retrospective review of authorised savings according to the following protocol:
- savings with an annual value forecasted in excess of £100k monthly review of volume and product/supplier compliance.
- savings with an annual value forecasted in excess of £50k quarterly review of volume and product/supplier compliance. Results to be reported at MPG.
- significant variance to be reported at Monthly TG by Information Team.
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