Evolution of a New Target Operating Model Continues

1 July 2022

On 1 July 2022, another part of the Target Operating Model (TOM) evolution was achieved, as operational responsibility for NHS Supply Chain: Large Diagnostic Capital Equipment Including Mobile and Services (Category Tower 7), transitioned from DHL Life Sciences to NHS Supply Chain.

The evolution of the new TOM began in April 2022 with operational responsibility of PPE being transferred into NHS Supply Chain.

Since early 2021 we have been working with our stakeholders, including NHS partners and suppliers, to shape the next iteration of our TOM. As an organisation, NHS Supply Chain recognises the need to evolve and adapt its model to better meet the needs of the wider NHS, and enable it to realise its long-term plans.

A future NHS Supply Chain needs to be more flexible and resilient, easier for our NHS partners to work with us, bring even greater value to the health and care system, excel in procurement, and connect supply chains.

As part of the procurement process, we are looking to change our service provider model by implementing a new category management service. There will be five distinct categories with three of the new categories being directly managed by NHS Supply Chain, these will include PPE, Medical Capital and Medical Clinically Complex.

New central teams will sit within NHS Supply Chain, helping to provide greater understanding of the products and capabilities, along with closer relationships to NHS policymakers and clinical leaders, helping to drive the right outcome for the NHS.

The remaining two categories, Medical Consumables and Non-Medical will continue to be delivered through a service provider model, overseen by NHS Supply Chain.

The procurement process for a new category management service continues to gather pace and we plan to award contracts in early 2023, with implementation to commence from the summer of 2023. In addition, this Autumn will see us commence re-procurement of our Logistics and Fulfilment service and Information Technology service as existing contracts end in 2024. Both remain critical enablers of the new TOM.

It represents one of the first steps for NHS Supply Chain on its transition towards a new target operating model and its long-term vision to make it easier for the NHS to put patients first.

Andy Windsor, Commercial Director, NHS Supply Chain