Small but agile
The organisation’s size means it can quickly respond to challenges, says Shannon Hutchins – business improvement manager at Clayton Church Homes – who answers our questions on aged care procurement.
How many facilities, services, residents, clients, and staff are within your procurement remit?
Established in 1968, Clayton Church Homes is an independent, not-for-profit aged care organisation. We operate three core services across metropolitan Adelaide and the Adelaide Hills, including five boutique aged care homes with a total of 375 beds, 189 retirement living units across 13 villages, as well as a growing home care service. We have 471 staff and a small cohort of volunteers.
Most notably, we recently reopened Summerhill, a newly developed residential aged care home in Uraidla (pictured below). The 60-bed offering combines stunning views across the Piccadilly Valley and deluxe accommodation and 24/7 registered nurse led care. My involvement in the development included procuring for the fit-out of the building and fostering relationships with local suppliers to ensure CCH’s commitment to community partnerships.
What are the main goods and services you procure?
My primary areas of responsibility include managing the procurement of all goods and services across all business areas, tendering processes, contractor management, and ensuring that we receive the best value for money across all these areas without compromising on quality. Furthermore, I am also responsible for the purchasing of equipment, consumables, and maintenance across all business areas.
What procurement channels and management technology do you use?
Since assuming the role of business improvement manager in 2023, I have worked closely with all business areas to centralise procurement processes, including the acquisition of goods and services, ensuring quality, value and cost-effectiveness.
CCH has based its procurement processes on a person-centred procurement model, with the customer central to our actions. Additionally, whenever feasible, we engage local contractors and suppliers to undertake the necessary works to support the local communities our services are located in.
We engage all applicable stakeholders in continuous improvements and decision-making within procurement processes. This includes involvement with residents, clients and their representatives on items such as gardening services, lighting improvements, and positive ageing activities. My work also involves close collaboration with our ICT team to implement improvements across the organisation.
What roles do environmental, social, and corporate governance (ESG) and care recipients play in your organisation’s procurement process?
With the escalating costs of services such as electricity, and the environmental impacts of its production, we utilise our procurement processes to mitigate our environmental impact. For example, we have invested in rooftop solar panels across most residential homes and some retirement living villages and are planning further installations to facilitate both cost savings and environmental conservation.
Where and how do you achieve cost and other efficiencies?
Centralising all procurement processes has enabled us to realise numerous cost efficiencies with suppliers. Previously, the decentralised nature of procurement led to multiple suppliers for similar items across the organisation. By transitioning to a preferred supplier model and negotiating supply contracts and pricing, we have achieved significant savings in a challenging financial climate, especially for the aged care sector.
Where are your supply chain bottlenecks, and how do you navigate them?
Following a review of procurement processes and contractor management, we closely collaborate with all stakeholders to ensure continuous improvements. We regularly review contractors and suppliers to meet our supply needs. The Covid-19 pandemic prompted a re-evaluation of supply chains, emphasising the necessity of diversification. Through close collaboration with contractors and suppliers and the establishment of supplier agreements, we aim to mitigate supply chain risks.
Forge close relationships with all stakeholders
What other procurement challenges is your organisation facing, and how are you addressing them?
As a smaller organisation, we possess the agility to respond swiftly to procurement challenges and adapt to the evolving aged care landscape. Procurement serves as a vital component of organisational operations. Collaborative efforts with staff, residents, clients, volunteers, suppliers, and contractors facilitate savings and keep pace with technological advancements and efficiencies.
What advice do you have for your counterparts?
Forge close relationships with all stakeholders – internal and external – to align everyone’s efforts toward optimal and shared outcomes.
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