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The Future Operating Model for the new NHS Supply Chain

What is the Future Operating Model (FOM)?

The FOM is the design of a new NHS supply chain service that will deliver improved procurement support to the NHS. Working as part of the NHS, the FOM will deliver clinically safe, high quality products for the best possible value.

As one of the biggest publicly-funded healthcare systems in the world, the NHS non-pay spend is approximately £27 billion each year, of which nearly £6 billion is spent on goods (everyday hospital consumables, high cost devices, capital equipment and common goods). With this level of spend the NHS should perform as one of the most effective buyers but it is currently unable to leverage its buying power due to the fragmented procurement landscape.

Jin Sahota talks about the FOM.

What will the FOM deliver?

The FOM will flex the tremendous buying power of the NHS through national demand aggregation. This is a key enabler for securing value for money for the NHS and taxpayers.

  • Savings will be cash releasing for reinvestment into front line services.
  • The FOM will be a part of the NHS, committed to delivering clinically assured products.
  • All NHS organisations will benefit regardless of their level of spend, location or team size.

Want to know more?

Please download the FOM Handbook below for more information about the origins and structure of the FOM, as well as details of the Office Solutions Category Tower. This is the first tower that went live in October 2017. We will provide details of each category tower as they go live.

More information for Suppliers about the FOM

Please find below the latest version of a document that has been drawn up to respond to the questions about the FOM that have been posed by product suppliers to the NHS.

Q&A for suppliers

NHS suppliers play a key role in the new operating model for the NHS Supply Chain Service. The purpose of the newsletter is to ensure all suppliers are engaged, informed and communicated with over the development of the new NHS Supply Chain, particularly as the programme moves towards full implementation in October 2018.

Read the latest newsletter here

As part of the on-going commitment to ‘two-way’ communication, suppliers are invited to help shape the content of this newsletter by emailing the FOM mailbox FOM@dh.gsi.gov.uk with what they would like to see.

Department of Health Announces Capital and Non-Medical Category Tower Service Providers

The Department of Health is pleased to announce the service providers for the Capital and Non-Medical Category Towers as part of the Future Operating Model (FOM) for NHS procurement. This follows the announcement in November 2017 for the six Medical Category Towers, and the Office Solutions Towers, which went live in October 2017.

The Capital and Non-Medical Towers have been awarded to:

DHL Supply Chain Ltd

  • Tower 7 – Large Diagnostic Capital Devices, including Mobile and Consumables

Akeso & Company Ltd

  • Tower 8 - Diagnostic Equipment and Associated Consumables


  • Tower 10 – Food

NHS North of England Commercial Procurement Collaborative (NOE CPC)

  • Tower 11 – NHS Hotel Services

Read full announcement

Capital and Non-Medical category towers Q&A

Health Care Suppliers Association (HCSA) Annual Conference and the FOM

The FOM was well represented at the annual HCSA conference in Harrogate. A panel session with the Medical Category Tower Service Providers and a number of the Procurement Transformation Team led to some lively discussion about the changes being brought about by the FOM – click here to read more.

For a full transcript of the questions and responses from the FOM panel at the HCSA conference – click here.

In the spotlight - information about the Medical Category Towers

Department of Health announces the Medical Category Tower Service Providers – read more.

The 6 Medical Category Towers have been awarded to the following suppliers:

DHL Supply Chain Ltd

  • Ward Based Consumables
  • Infection Control and Wound Care

Collaborative Procurement Partnership (CPP)

  • Sterile Interventions Equipment and Associated Consumables
  • Orthopaedics, Trauma & Spine, Ophthalmology
  • Rehabilitation, Disabled Services, Women’s Health & Associated Consumables

Health Solutions Team Ltd (HST)

  • Cardio-Vascular, Radiology, Audiology & Pain Management

For more information on the providers of the six Medical Category Towers click here

If you are a supplier, please click here

Q&A on the Medical Category Towers

We have prepared some questions and answers as an overview of the new Medical Category Towers, following the announcement of the new providers. We will update this website regularly over the coming weeks with more information.

Contact us

If you would like to know more about the FOM, or are a member of the media, please contact FOM@dh.gsi.gov.uk.

This website is currently in development, more information on the FOM will follow shortly.

Delivering value to the NHS