Victoria’s new public health supply chain on track to onboard first customers

HealthShare Victoria (HSV) is making good progress in preparing to onboard the first group of health service customers from the Melbourne Health cluster and stand up the distribution centre that will serve as Victoria’s new medical consumables supply chain hub from mid-2021.

The first group of health service customers from the Melbourne Health cluster includes Melbourne Health, The Royal Women’s Hospital, The Royal Children’s Hospital, The Royal Victorian Eye and Ear Hospital, Peter MacCallum Cancer Centre, Western Health and Northern Health.

“Work to establish the infrastructure, fittings and systems at the new distribution centre is well underway, as is work to progress the bulk orders needed to stock the distribution centre,” says HSV Chief Executive Neil Rodaway.

“We are also commencing discussions with the first tranche of health services in the Melbourne Health cluster to establish service level agreements that will underpin our operations.

“Looking beyond the first tranche, we’re continuing to engage with those health services scheduled to be onboarded after this first group to ensure we have a good understanding of existing services and facilities to inform discussions on the most appropriate service delivery model.  

Other metropolitan, regional and rural health services are expected to follow in tranches from the second half of 2021, and a new shared service model is proposed to extend statewide over the coming two years.

The new end-to-end supply chain will integrate sourcing, purchasing, warehousing, delivery and ordering and will help hospitals to support better patient outcomes, chiefly through more consistent stock availability and big volume orders to maximise their purchasing power.

HSV is working closely with Melbourne Health Logistics (MHL), Monash Health, the Department of Health and suppliers to prepare our new Distribution Centre in north-west Melbourne for operations. The fit-out and establishment of the Warehouse Management System (WMS) is nearing completion and the MHL warehouse and logistics team will relocate to the Distribution Centre by the end of June 2021.

The focus of activity is on health services who are first to onboard, and includes:

• Commencing service level agreement discussions with Melbourne Health cluster health services, with others to follow.
• Supplier communication in progress to support next steps ahead of the commencement of bulk ordering.
• Establishing the Oracle Financial Management Information System (FMIS) as the procurement system supporting the new end-to-end supply chain.
• Consultations and discussions underway with regional and rural health services to understand their existing infrastructure, equipment and preferences.
• Progressing more detailed information for health services to be made available on the HSV website.