The savings have been achieved by improved product prices and efficient supply chain service delivery.
NHS Supply Chain provides the NHS with an end to end supply chain solution that it estimates can save a typical hospital up to 10 percent in product costs if they switch to its lowest priced suppliers.
The supply of healthcare products to the NHS was outsourced to DHL in 2006. Since then, the company has invested in NHS Supply Chain’s infrastructure, IT systems and created over 800 jobs in eight distribution centers.
By complying with EU procurement regulations, it has saved, on average, £40,000 per contract.
Nick Gerrard, Chief Operating Officer, NHS Supply Chain, said: “We lift the administrative load felt by hospitals’ back office functions by combining all items onto a single invoice, this saves up to £1 per item when compared with ordering products separately.
“And as well as making tangible savings we are helping NHS trusts reduce their carbon emissions by consolidating deliveries which can save up to 40 separate lorries unloading per day.”
E-auctions can typically reduce product costs by 15 percent. Last year, NHS Supply Chain conducted 54 e-auctions.
Over the next six years, NHS Supply Chain aims to create efficiency savings of more than £1 billion.
Edited by Jennifer Denby
Visit the NHS Supply Chain website
for more information.