Fostering a culture of continuous improvement

How many facilities, services, residents, clients, and staff are within your procurement remit?

My procurement remit includes Calvary’s facilities across multiple states and territories. These include:

• 60 residential aged care homes accommodating more than 4,800 residents
• 514 units across 17 retirement villages, accommodating almost 500 residents
• 13 hospitals, three public and 10 private
• more than 100 types of home care services to 18,500 clients
• about 18,000 employees, plus volunteers.

What are the main goods and services you procure?

Our procurement needs vary across our facilities due to the diversified services we offer and the care we provide to residents, clients and patients depending on their individual needs.

We procure a wide range of goods and services including surgical and medical supplies, pharmaceuticals, food and catering services, IT equipment and software and telecommunications. We also procure linen and laundry services, uniforms, records management, travel, waste management, agency staff, talent recruitment, learning and development, fleet management, facility management services, cleaning services, stationary and print items and utilities.

What procurement channels and management technology do you use?

We use a blend of centralised and decentralised procurement channels, supported by procurement management technology.

Our technology stack includes procure-to-pay platforms and contract management systems. We are currently implementing an enterprise resource planning business management software and other sourcing modules.

We are always looking at ways to be more efficient with our procurement technology, and ultimately we want systems that provide the business transparency and compliance across our procurement processes.

What roles do environmental, social, and corporate governance –ESG – and care recipients play in your organisation’s procurement process?

Calvary is committed to working with suppliers that align with our ESG values. This includes suppliers that can display examples of sustainable sourcing, ethical labour practices, and community engagement.

We acknowledge the potential impact our activities have on the environment and are committed to ensuring the continual improvement of environmental management as an integral component in the delivery of our health, aged and community services.

Through the implementation and localisation of our Reconciliation Action Plan, we are developing procurement policies that support the participation of First Nations people in the Calvary workforce and support improving economic outcomes for First Nations suppliers.

Calvary is also committed to upholding human rights, not only with respect to its own employees but also for workers in its supply chain. Our ethical sourcing policy encompasses comprehensive criteria on anti-corruption, labour rights, fair and safe working conditions and environmental compliance.

Calvary is a member of the Australian Catholic Anti-Slavery Network. ACAN brings together major Catholic entities to work collaboratively towards eradicating modern slavery. Through our membership, Calvary joins other Catholic organisations, such as schools, hospitals, aged care facilities, universities, and investment and insurance funds to share resources, knowledge, and experience to address a combined supply chain in excess of $15 billion a year.

Where and how do you achieve cost and other efficiencies?

We have developed strategic sourcing approaches and leverage long-term supplier relationships. We also focus on process efficiencies by continuously improving our procurement workflows, adopting automation, and ensuring value for money.

It is crucial that we maintain our diverse supplier base

Where are your supply chain bottlenecks and how do you navigate them?

Global shipping delays, regulatory compliance, and supplier capacity constraints are where we identify most supply chain bottlenecks. It is crucial that we maintain our diverse supplier base, build strong relationships with key suppliers, and implement contingency plans when required –such as alternative sourcing strategies and inventory buffers.

What other procurement challenges is your organisation facing and how are you addressing them?

As a healthcare provider, Calvary’s challenges are not unique. Everyone across the health and ageing sector is having to respond to the impacts of inflation, navigating complex regulatory environments, and ensuring supply chain resilience. Our procurement team, and other partners across our business, closely monitor market trends, engage in proactive contract negotiations, and invest in supplier development programs to continually build a more robust and responsive supply chain to suit our needs.

What advice do you have for your counterparts?

We all need to embrace digital transformation in procurement, prioritise ESG considerations when selecting a supplier, build resilient supply chains through diversification and above all, maintain open communication with all stakeholders. Through these efforts procurement teams can foster a culture of continuous improvement that benefits the organisation, and ultimately the residents, clients and patients we serve.

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