Procurement in the Health Sector

State Government Health Procurement departments working together to create Australia’s most successful collaboration project in procurement


DecisionMAX entered the Health Sector in 2000 which began a unique story of customer relationships, business communities working together and procurement automation.   
In 2002 the NSW Health Group (Peak Health) was searching for ways to throw off the shackles of a static purchasing culture and instigate strategic procurement strategies to ultimately achieve the automation of the procurement cycle across 22 hospitals.

While large scale automation had begun and was continuing to be developed in the NSW government hospital system and panel contracting areas for NSW Commerce, the NSW Peak Group was focusing on the need to standardise general purchasing strategies across the hospitals and in doing so, reduce the occurrences of repetitive tendering and elongated tendering cycles.  After in-depth reviews the Peak Health Group and DecisionMAX Software Pty Ltd began a working relationship with DecisionMAX software that expanded beyond both organisations’ expectations.
This occurred as both Health Purchasing Victoria and Queensland Health Purchasing & Logistics, who were both facing the same challenges, decided to join their efforts with Peak Health.  Although driven from different aspects, all the Health groups recognised the opportunity to form an informal network to share their findings in developing procurement strategies that suited Health Services.


Following the independent reviews by each organisation, DecisionMAX Software was chosen as being the "Tool of Choice" to meet their individual objectives and to deliver the efficiencies identified through their pilots.
From small beginnings, the relationship with Peak Purchasing had blossomed and with the introduction of the three large Health buying groups now working on the same TenderMAX platform and addressing the same supply chain, the possibilities of real collaboration have emerged. 
By mid 2003 the regular DecisionMAX client briefings had began to merge into a combined Health consortium hosted by each state on a revolving basis.  In early 2004 the consortium took an inaugural step, deciding to maximise the opportunities created by the TenderMAX platform and developed a common industry template working toward standardising tender documentation across all the states and in-turn, developing a streamlined purchasing approach for the supply chain servicing the health community. 

 A few months after this early collaboration the scope expanded as the consortium, recognising the repetitive nature of Health buying in consumables purchasing, medical equipment and business services, extended their level of co-operation to share their actual tender IP.
Today this has evolved to a national tender repository hosted by NSW Health Procurement (formerly Peak Purchasing) and is open to all states sharing common use tenders in potentially, hundreds of specialised categories.
Four years after its inception the DecisionMAX Health consortium is even bigger servicing the needs of four combined states, hundreds of hospitals and over 2000 suppliers who use the DecisionMAX tender response tool “DMAX Lite”, to interact and respond to Health tendering opportunities.

Today, the original small informal network has emerged as an example of collaboration for all State Governments and industry sectors alike.
The DecisionMAX Health portal is dedicated to the Health Sector and provides a central resource to support both the suppliers and consortium members.
Access to the site is available in two levels: the suppliers using the TenderMAX software tools have automatic access for Software and Application Help Desk Services, whilst the Consortium members have access to the TenderMAX Knowledgebase, Training Calendars and Best Practice Templates.

For background information and fact sheets / case study summaries please visit the individual websites.

The current member are: