NSW Health Procurement Reform - information for suppliers​

Procurement Reform program

NSW Health has embarked on a major Procurement Reform program to transform the procurement and supply chain across the state’s public health system.

The reforms will result in an integrated and digitised procurement and supply chain for NSW Health. It will improve processes and data around how NSW Health procures and purchases products; and importantly, it will support NSW Health staff to perform their jobs more efficiently and effectively, so they can continue to provide value-based care to patients.

Introducing SmartChain

A core component of the Procurement Reform is SmartChain.

Led by eHealth NSW (eHNSW) and HealthShare NSW (HSNSW) SmartChain is comprised of three new digital solutions that will integrate to create a single, end-to-end procurement and supply chain system for NSW Health.

SmartChain solutions will improve how data is collected, used and managed by NSW Health, ensuring decision-making is based on reliable, current and trusted information.

For suppliers it means clearer, more consistent product data, streamlined contract processes, and in some cases new ways to provide product information.

The SmartChain solutions include:

  1. Dataflow – a centralised catalogue management system that acquires accurate product catalogue data from suppliers and shares it across NSW Health entities
  2. Sourcing and Contracts – a contract lifecycle management (CLM) solution that is NSW Health’s centralised repository for all statewide sourcing, procurement and contract management activities and documents
  3. Traceability – a solution for managing implantable devices and other products. Linked to the NSW Health catalogue, Traceability can track item usage to patient procedures and order items in one step.

Staying updated on the Procurement Reform program

  1. Visit this page for the latest updates
  2. Issues with PO/invoice holds, email Accounts Payable: HSNSW-AccountsPayable@health.nsw.gov.au
  3. If you are on a statewide contract speak to your HealthShare NSW category/contract manager

Please DO NOT contact the HealthShare NSW Supply Chain Operations team.

Frequently asked questions

General

Why is the reform happening?

The reform is about modernising our procurement and supply chain to make it more efficient, transparent, and data driven. This ensures NSW Health can deliver the best value for money and, most importantly, support better patient care across the state.

What does it mean for suppliers?

  • Reduced duplication of catalogue updates across entities
  • More consistent product data across NSW Health
  • Improved ability to support NSW Health staff and patients
  • Streamline our process to make it more efficient for suppliers.

Do we need to take any action right now?

No. We will contact you directly when specific actions or system interactions are needed.

Will this change how tenders are issued and managed?

Yes, in the future. Tenders and sourcing activities will be managed through the Sourcing & Contracts solution. This will improve visibility, tracking, and communication during the tender process. You will be guided on how to access and use the system when it becomes relevant to you.

Will this reform increase compliance requirements for suppliers?

Some compliance processes may become more streamlined and digitised - for example, new data compliance standards in the product and pricing schedules - but not necessarily more burdensome. The goal is to reduce duplication and manual work, while ensuring NSW Health has accurate information to meet governance, audit, and patient-safety obligations.

Will smaller suppliers be disadvantaged compared to large ones?

No. The changes are designed to benefit all suppliers, regardless of size. In fact, clearer data and simplified processes will help smaller suppliers engage more easily and consistently with NSW Health.

Will the reform change payment terms?

No, standard NSW Health payment terms remain the same. If any changes occur in future, suppliers will be notified well in advance.

Will suppliers still use StaffLink?

Yes. StaffLink (Oracle) remains in use as the NSW Health ERP. The SmartChain solutions integrate with existing systems like StaffLink, they do not replace them.

Will we have to provide data in new formats?

Yes, over time catalogue and contract data may need to meet new data standards so it can flow into Dataflow and Sourcing & Contracts. Technical specifications and templates will be shared in advance to give you time to prepare. The first change will be to some existing statewide contract product and pricing schedules, later in 2025.

Will there be training or support for suppliers?

Yes. If required, NSW Health and HealthShare NSW will provide guidance, training materials, and support as new processes are introduced. We will ensure you have the information and tools needed to adapt smoothly.

Will this affect our current contracts with NSW Health?

Existing contracts remain valid. Over time, they will be migrated into the new Sourcing & Contracts system, which will be NSW Health’s centralised contract repository. We will provide any relevant instructions and timelines before migration impacts your organisation.

Will this change how purchase orders or invoices are handled?

Not immediately. The reform is rolling out in phases. Any future changes to purchase orders or invoicing processes will be communicated in advance, with clear supplier instructions.

Will the reform impact existing supplier numbers or registrations?

Your current vendor registration in StaffLink remains valid. Over time, some supplier master data may be cleansed and updated to improve accuracy, but this will not affect your ability to transact with NSW Health.

Does the procurement reform affect Whole-of-Government contracts?

Whole-of-Government contracts continue to apply where relevant.

How does this affect Local Health District (LHD) and Specialty Health Network (SHN) procurement?

LHDs and SHNs will transition to using the new SmartChain solutions for procurement and contract management. For suppliers, this means more consistency across all NSW Health entities with streamlined and standardised systems and processes.

Will we need to sign new agreements to access the SmartChain solutions?

No new agreements are required at this stage. If new user access, or portal arrangements are introduced, these will be clearly communicated.

Will suppliers need to pay fees to use the SmartChain solutions?

No. There are no usage fees for suppliers. This is a NSW Health investment in improving systems and processes.

How will NSW Health ensure data security and confidentiality?

Data security is a top priority. All NSW Health solutions are built and hosted in accordance with NSW Government’s strict cyber security standards. Supplier data will only be used for legitimate procurement, contract, and supply chain purposes.

Will these solutions help reduce duplicate requests we get from different hospitals?

Yes. With Dataflow centralising product catalogues and Sourcing & Contracts managing agreements statewide, suppliers should experience fewer duplicate requests for the same information.

How will this impact purchase volumes and forecasting?

Over time, improved data and visibility will support better demand forecasting by NSW Health. This may help suppliers with forward planning and inventory management. Purchase volumes themselves will always be driven by patient demand.

Specific questions around changes

(note: we will update these regularly)

When will we start to see changes that impact suppliers?

Initial supplier impacts will begin with the Dataflow solution, as catalogue data becomes centralised. The rollout is happening in phases and you will be notified with clear timelines before you need to act.

This means we may need to collaborate with certain suppliers to clarify and confirm some data requirements.

Example changes include:

  • For some Whole of Health (statewide) contracts a new product and pricing schedule will be made available soon (we will be contacting impacted suppliers about any changes required). Until you need to complete new tender, submit a variation, or unless we share the new schedule with you, you do not need to take any action right now.

Who is responsible for submitting PnPs?

During the statewide tendering process, the new PnP schedule (if applicable for the relevant contract) is provided to suppliers as part of the tender documentation to be completed and submitted together with the tender documents. Instructions on how to complete the template will be available soon.

What if I have an urgent variation?

Follow your contract procedure and please contact your HealthShare NSW category/contract manager.

I need to submit a contract variation, what do I do?

Follow your normal process; for example, if you are submitting a variation, please contact your HealthShare NSW category/contract manager.

I have submitted a change recently, does this impact me?

You will not need to act unless we contact you.

How will I know if my catalogue or contract is affected?

HealthShare NSW will contact you directly with clear instructions if your catalogue, contract, or product line is included in an early rollout phase. Updates will also be published on our website.

Does the supplier information in Dataflow come directly from the NPC? Is there anything we are required to do now, or do we just ensure our NPC data is up to date?

Integration with NPC is part of our future roadmap for Dataflow. We will inform suppliers when this integration takes place. In the meantime, we urge suppliers to ensure the data they publish in NPC for NSW Health is as accurate and complete as possible. For our initial go-live later this year, our existing processes for capturing product information will remain unchanged.

How will product recalls or urgent safety alerts be handled under SmartChain?

SmartChain’s integrated systems will improve product traceability and recall management. For implantables and high-risk devices, Traceability can track item usage to patient procedures and order items in one step. This is helping to reduce risk and make response quicker.

How does Traceability affect us as suppliers?

The Traceability solution focuses on implantable devices and high-risk medical products. For suppliers in this space, it means product information can be linked to patient procedures and ordered items in one step, ensuring safety and compliance. If your catalogue is impacted, you will receive further information as and when required.

Back to the top of this page