NHS Standard Service Level Specifications Materials Management Service

NHS Standard Service Level Specifications

Specific Service Specification – Materials Management Service

This Specific Service Specification should be read in conjunction with the General Service
Specification. Together they form the Service Level Specification.

NB: This specification should not be used without the General Services Specification.

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NHS Standard Service Level Specifications Materials Management Service

SCHEDULE [ ]
Part 1: Service Level Specification

Sub-Part C: Materials Management Service Specification

1. Contents

• Overview
• Definitions
• Key Objectives
• Scope of Service
• Specific Requirements.
• Exclusions
• Continuous Improvement Indicators
• Appendices

2. Overview

2.1 Project Co shall provide a Materials Management Service to deliver the

following:

a) receipt of all Trust ordered goods delivered to the Site;

and

b) maintaining appropriate stock levels of Trust goods within

the Site.

2.2 The Materials Management Service shall be provided 24 hours per day,
365(6) days per year.

2.3 The Materials Management Service applies to all areas of the Site.

3. Definitions

3.1 Any reference to the “Specific Service Specification” in this Part [ ] shall
be reference to this Materials Management Service Specification
(including the Appendices hereto)

3.2 Items defined in the General Service Specifications shall have the same
meaning herein.

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3.3 In this Specific Service Specification the following words and phrases
shall have the following meanings:

“Materials” means goods, supplies and or equipment

used in undertaking the services provided
by the Trust.

“Materials Management means the Service to be provided by

Service” Project Co to the Trust pursuant to this
Specific Service Specification.
“Stock Items” means any products or materials, including
pre-sterile disposable products or
materials, ordered through NHS Logistics
Authority. For the avoidance of doubt, this
does not mean such products or materials
are held on Site
“Non-Stock Items” means any products or materials, including
pre-sterile disposable products or
materials, not ordered through NHS
Logistics Authority. For the avoidance of
doubt, this does not mean such products
or materials are held on Site

4. Key Objectives

4.1 In addition to the key objectives, stated within the General Services
Specification, Project Co shall:
a) provide an integrated Materials Management Service to ensure
sufficient Materials are available to maintain the continuity of the
Trust’s core business;

b)provide an efficient and effective high quality Service for the receipt
and distribution of Trust Materials to all wards and departments
throughout the Site;

c) coordinate distribution to ensure that all Materials required by

the Trust are available at the point of use at the times and in the
quantities specified by the Trust;

d) ensure that value for money is achieved by efficient supply chain

management across the Trust to provide optimum levels of
Materials at the agreed quality; and

e) provide security and safety for Materials in storage and in transit

around the Site.

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5. Scope of service.

5.1 Project Co shall comply with all requirements set out in the General
Service Specification relevant to the delivery of the Materials
Management Service.

5.2 In addition to the applicable provisions set in the General Service

Specification, Project Co shall comply with this Specific Service
Specification.

5.3 Project Co shall ensure the requirements of this Specific Service

Specification are read in conjunction with the Trusts [Logistics Services
Policy] and the Portering Service Specification to deliver an integrated
and coordinated internal logistics solution.

5.4 Project Co shall be responsible for and control the inward and outward
movement of Materials through the Trust’s designated materials receipt
and despatch area(s).

5.5 Project Co shall provide an integrated Materials Management Service

that will have wide responsibilities for the, receipt, safe custody and
distribution to end users of Materials and Services requisitioned by
hospital departments. The Materials Management Service shall include
the following elements:

a) operational Support;

b) materials receipt;

c) on-site Stock Items;

d) storage;

e) top-up Service; and

f) distribution.

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5.6 Project Co’s attention is drawn to the following legislation and guidelines
which for the Materials Management Service will be deemed to be
included within the General Standards:

a) European and GATT directives;

b) Consumer Protection Act 1987;

c) Sale of Goods Act 1979; and

d) Supply of Goods and Services Act 1982.

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6. Specific requirements
Ref Performance Parameters Performance [Tolerance]1 Remedial Monitoring
Failure Period Method
Category
Operational Support Systems
SP 01 Project Co shall operate an integrated operational Medium [0%] 1 day. Monthly review of
support system, which shall interface with the Trusts system undertaken
procurement system, and shall as a minimum provide to ensure agreed
the following data: interface with Trust
i) inbound logistics and supplier collection; procurement team
ii) warehouse management and stock control; operates as
iii) material tracking; intended.
iv) real time inventory management;
v) bar coding;
vi) remote on-line user access;
vii) auditable control system which identifies
separately the stock usage, fast moving and non
moving stock as well as stock shortfalls in individual
wards and departments; and
viii) a system for receiving and issuing ad-hoc Non-
Stock Items received against authorised requisitions
of the Trust for producing consolidated reports of
non-stock issues;
SP 02 Project Co shall establish and implement interface Minor [0%] 1 hour. Operational
procedures with Trust parties contributing to the Trust’s procedures
total internal logistics solution. implemented.
Determined by
default.
SP 03 Project Co shall, in conjunction with the Trust, Minor [0%] 1 day. Monthly review
1
This column should be deleted for PFI projects as tolerance is addressed within Schedule 18.

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undertake a monthly review of the interface procedures. undertaken with

Trust.
Materials Receipt
SP 04 Project Co shall co-ordinate all delivery traffic to the Medium [0%] 30 minutes Monthly review of
Trust, to prevent traffic congestion on the Site. records.
Determined by
default.
SP 05 Project Co shall receive all deliveries through the Major [0%] 1 hour. Monthly review of
designated receiving area unless otherwise agreed with records.
the Trust. NB Erroneous deliveries to be transferred to Determined by
receiving area within the Remedial Period unless default.
delivery accepted by the Trust.
SP 06 Project Co shall check, within 4 hours of receipt, that all Major [0%] 4 hours. Weekly review of
deliveries accord with the corresponding order (in terms records.
of quantity and quality) and are free from damage. Determined by
default.
SP 07 Project Co shall notify the Trust of all deliveries, (and Medium [0%] 4 hours Daily review of
alert the Trust and supplier of any discrepancies and records.
damage), within 4 hours of receipt. Determined by
default.
SP 08 Project Co shall retain a record of all deliveries in Medium [0%] 1 day. Monthly check
accordance with a protocol agreed with the Trust. against protocol.
Determined by
default
SP 09 Project Co shall not accept any deliveries which present Medium [0%] 15 minutes Weekly review of
a risk unless pre-agreed with the Trust. Such deliveries records.
to be notified to the Trust within 15 minutes of receipt. Determined by
default.

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SP 10 Project Co shall provide proof of delivery to the Trust Medium [0%] 24 hours Weekly review of
within [24] hours of each delivery. records.
Determined by
default.
SP 11 Project Co shall secure all deliveries upon receipt. Major [0%] 15 minutes Weekly review of
records.
Determined by
default.
SP 12 Project Co shall ensure that packaging materials do Medium [0%] 30 minutes. Determined by
not disrupt Trust activities. default.
SP 13 Project Co shall ensure the Trust is not charged for Medium [0%] 1 day*2. Determined by
returnable packaging materials. N.B. This includes default.
direct charges from a third party (e.g. supplier), or
costs incurred because the packaging is disposed of
as Waste.
SP 14 Project Co shall maintain accurate inventories of Stock Minor [0%] 1 hour Weekly review of
products and advise the Trust where product levels fall records.
below pre-determined thresholds. Determined by
default.
SP 15 Project Co shall undertake stock rotation to preclude Major [0%] 1 day. Monthly review of
(by its own actions) time expired stock. records.
Determined by
default.
SP 16 Project Co shall notify the Trust of any orders that are Medium [0%] 2 hours Weekly review of
overdue for delivery. records.
Determined by
default.
On-site Stock Items
2
Where the Remedial Period is marked with an astrix in this column, Project Co shall have demonstrated to the reasonable satisfaction of the Trust’s
Representative that it has taken appropriate sets to prevent the recurrence of the Performance Failure.

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SP 17 Project Co shall provide to the Trust management Medium [0%] 1 day. Monthly report
reports in a format determined by the Trust. issued by due date.
Storage
SP 18 Project Co shall store all Materials in its care in Medium [0%] 1 hour. Weekly review of
accordance with manufacturer’s recommendations. procedures
undertaken.
Determined by
default.
Top Up Service
SP19 Project Co shall submit to the Trust and review on a Medium [0%] 1 day Scheduled
monthly basis, a schedule of topping up activities, at a provided and
frequency that ensures adequate stock levels based monthly review
on planned Trust activity. undertaken.
Project Co shall provide a stock top up service to
maintain stockholding of agreed range of items at ward
and department level as required by the Trust. Stock
will be provided on an Ad-Hoc Service Request and
Scheduled basis in accordance with the Materials
Management Service Completion Times set out in
Appendix A.
SP 20 Emergency Ad-Hoc Service Requests for the topping Major [0%] 30 minutes Determined by
up of stock levels are carried out within the Completion default.
Times.
SP 21 Urgent Ad-Hoc Service Requests for the topping up of Medium [0%] 30 minutes Determined by
stock levels are carried out within the Completion default.
Times.

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SP 22 Routine Ad-Hoc Service Requests for the topping up of Minor [0%] 30 minutes Determined by
stock levels are carried out within the Completion default.
Times.
SP 23 Planned Ad-Hoc Service Requests for the topping up of Medium [0%] 20 minutes Determined by
stock levels are carried out within the Completion default.
Times.
SP 24 Scheduled Ad-Hoc Service Requests for the topping up Medium [0%] 20 minutes Determined by
of stock levels are carried out within the Completion default.
Times.
SP 25 Project Co shall record details of all stock issues/returns Medium [0%] 1 day. Weekly review of
made to/from wards and departments in the appropriate records .
unit of issue in line with the [Logistics Service Policy] Determined by
and provide such information to the designated Trust’s default.
Representative.
Distribution
SP 26 Project Co shall ensure that all Materials in transit, for Medium [0%] 30 Weekly review of
which Project Co has responsibility, are safe and minutes. procedures.
protected at all times. (e.g. approved transport utilised, Determined by
correct procedures adhered to). default.
SP 27 Project Co shall ensure all Materials delivered to the Medium [0%] 4 hours. Monthly review of
Trust are correctly labelled with end user name, records.
department and Trust internal order number and are Determined by
accompanied by delivery/advice notes. default.
SP 28 Project Co shall ensure that all deliveries to end users Medium [0%] 4 hours. Monthly review of
have a written confirmation of delivery, and that copies records.
of that confirmation are passed to the Trust’s finance Determined by
directorate. default.

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General
SP 29 Project Co shall ensure that a full audit trail of all activity Medium [0%] 4 hours. Quarterly review of
involved in operating and managing the Materials audit trail.
Management Service is implemented and adhered to at Available for
all times. The audit trail shall be agreed in advance with inspection by the
the Trust and must be available for Trust inspection. Trust within [4]
hours
SP 30 Project Co shall reimburse the Trust for any losses Medium [0%] 1 week. Monthly review of
incurred from points of receipt of goods until the goods records.
received pass to the custody of a representative of the
Trust.

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7. Exclusions

7.1 For the avoidance of doubt the following are not part of the Materials Management Service:
a) the distribution of Non-Stock Items. This is included within the Portering Service Specification; and

b) the procurement of Stock and Non Stock items. This will be retained by the Trust.

8. Continuous Improvement Indicators

Performance ranges to be established by the Trust.

Ref Continuous Improvement Indicator Performance Range

Green Amber Red
Average Emergency Completion Time < [ ] minutes [ ] - [ ] minutes > [ ] minutes
for Ad Hoc Service Requests.
Average Urgent Completion Time for < [ ] minutes [ ] - [ ] minutes > [ ] minutes
Ad Hoc Service Requests.

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Appendix A
Completion Times

Category Completion Time

Emergency 30 minutes

Urgent 30 minutes

Routine 30 minutes

Planned Within 20 minutes of agreed

time.
Scheduled Within 20 minutes of agreed
time.

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