HSV Purchasing Policy 5. Collective Purchasing and Supply Chain


HSV Purchasing Policy 5. Collective Purchasing and Supply Chain


2.1 Collective purchasing and supply chain principle

Comply with HSV’s collective agreements, supply chain conditions/specifications or approved Victorian Government SPC / SEPC to gain value for money through aggregated demand.

2.2 Collective purchasing and supply chain associated requirements

a) Health services within Schedule 1 and 5 of the Health Services Act 1988 (Vic) must only purchase from a HSV collective agreement, arrangement, or supply chain, any good or service that has been sourced by HSV.

b) Compliance with HSV collective agreements, supply chain conditions/specifications, and HSV approved SPC and SEPC opportunities, including reporting.

c) Health services are to be actively responsible and accountable for the establishment of internal processes and ongoing requirements of compliance with HSV collective agreements. Part 3: 3.2.

d) Health services are to assist HSV in:

i. identifying potential aggregation opportunities, including:

  • informing HSV if any spend analysis or complexity assessment indicates grounds for  aggregating demand or benefits from HSV involvement; and
  • working with HSV to collect procurement data to assist in the identification process and to develop the HSV sourcing program.

ii. providing input into the development of business cases as requested;

iii. nominating participants in consultative and advisory groups, where appropriate, including executive, product or service reference groups or other advisory groups that will contribute toward:

  • development of specifications;
  • evaluation of bid responses and/or other negotiations with suppliers;
  • development of contract key performance indicators (KPIs) and a contract management plan;
  • an understanding of health service’s resourcing, clinical and operational requirements to enable a successful transition to any HSV collective agreement;
  • ongoing management of the category to optimise contract utilisation and review supplier performance;
  • acting as HSV's agent in conducting sourcing activities where mutually agreed upon; 
  • establishing appropriate processes to ensure the security of all confidential and commercially sensitive information, in particular, supplier information.

e) Refrain from engaging in practices that may subvert HSV’s function.

f) Seek approval from HSV to on-sell, and report any on-selling approved arrangements to HSV annually.

g) Apply for an exemption from HSV collective agreements, supply chain arrangements, and HSV approved SPC and SEPC only in specific circumstances.

Collective agreement and supply chain resources


Tools and templates