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NHS Supply Chain delivers £250mn of savings, nearing £300mn target

The NHS has saved more than £250mn across its supply chain operations

NHS Supply Chain and NHS Business Services Authority have achieved over £250mn cash-releasing savings which should assist Trusts in maximising their procurement budgets.

These cash-releasing savings have been delivered against the £300mn target set for September 2018 by the Department of Health. 

Gerry McGeary, Head of Supplier Management, NHS Business Services Authority said: “Our Trusted Customer programme, which serves as the voice of the customer, ensures that NHS Supply Chain’s procurement strategy has contributed to the delivery of these significant savings.

“We seek to encourage more joint working between all stakeholders in order to deliver the full £300mn cash-releasing savings target by the end of September 2018.”

David Pierpoint, Chief Operating Officer, NHS Supply Chain, commented: “This is a great achievement and it’s only by working in collaboration with our customers and suppliers on our savings programmes such as the Nationally Contracted Products (NCP) programme, High-Cost Tariff-Excluded Devices (HCTED) and Compare and Save that it’s been possible to make these savings.”

In addition, the NHS Supply Chain Capital Solutions Team has achieved the overall target set by the Department of Health of £158mn cost avoidance savings ahead of its due date of September 2018.

This achievement has benefitted many NHS trusts who have purchased Capital medical equipment through NHS Supply Chain.

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Jason Lavery, Director NHS Supply Chain Capital Solutions explained: “The key driver for these savings is the better utilisation of the Department of Health Capital Equipment Fund.

“Through working collaboratively with local and regional customer groups, we have been able to aggregate and leverage national demand within NHS capital medical equipment. The Fund has also provided the opportunity to commit bulk orders to suppliers of radiotherapy equipment as part of the national £130mn replacement plan to support the treatment of cancer”.

NHS Supply Chain is operated by DHL and managed by the NHS Business Services Authority. It supports the National Health Service (NHS) and other healthcare organisations in England and Wales by providing end to end supply chain solutions.

The organisation was formed in 2006 from the NHS Logistics Authority and parts of the NHS Purchasing and Supply Agency. The initial contract which was due to expire in October 2016 has been extended for a further two years until October 2018.

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