Approved: NHS Supply Chain Modernisation Programme
We are pleased to share that NHS Supply Chain has received approval from Government to proceed with our NHS Supply Chain Modernisation Programme. Chief Executive Officer Andrew New said that the approval will allow NHS Supply Chain to make a step change in its ability to serve the NHS and patients across England, by investing in IT and supply chain infrastructures through a multi-year programme.
This investment will be used to grow the value of our procurement and delivery services to meet the needs of all of our service users and stakeholders in a resilient and modern system-centric way.
It will also enable us to address our critical IT resilience risks, as well as delivering our commitment to return a minimum of £1 billion of recurring annual value to the NHS by 2030.
Andrew New, Chief Executive Officer, NHS Supply Chain
We will do this by making three large scale changes:
- Replace our ageing Enterprise Resource Planning (ERP) and legacy applications IT infrastructure with modern cloud-based software, providing far greater reliability, greater information transparency and an improved user experience for our customers and our suppliers.
- Expand our logistics infrastructure to enable us to grow our capacity, hold a wider range of stocked items close to our customers, allow greater order consolidation taking complexity away from clinical settings and to do so in a more cost efficient and sustainable way than we do today. We will also build our capability to service the NHS and patients outside of acute settings enabling the ambitions of the NHS 10-year plan.
- Re-engineer our end-to-end business processes to provide more consistency in how we operate, improve transparency, and increase availability of data to enable better decision making.
We will deliver the NHS Supply Chain Modernisation Programme along with our two newly contracted service providers GXO Logistics and Tata Consultancy Services.
Now we have received approval, we enter a period of detailed preparation activity which includes bringing multiple service providers together who will be key to delivering the programme with us. Following that, we will begin detailed design in early 2026 which will inform the ongoing programme plan.
We are also currently out to market to procure services of a delivery and assurance provider to help us to manage this major investment and change programme, and we expect this provider will begin work with us in Spring 2026.
We are committed to working closely with our stakeholders and engaging with representatives from all care settings throughout the programme.
We will provide you with regular updates on our progress.
Links section
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NHS Supply Chain Modernisation: November Update
A video featuring Alex Elberg, Executive Director of Supply Chain, addressing some of the initial questions received from stakeholders.
