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eAuctions on canned goods delivers year-on-year savings of 15%1

Thursday 18 December 2014

Finding ways to achieve recurrent efficiencies of 4-5% for the NHS is a major challenge and one thing is clear: if we want to achieve sustainable efficiencies in NHS procurement then working together with our customers and suppliers, we need to look at different ways to do this.

As a procurement partner to the NHS, we have been using eAuctions since 2009 as a way of identifying further savings for a number of product areas and whilst this has been successful, there is potential to deliver even more savings using eAuctions.

For example, Catering teams have been making good use of the eAuction technology and our customers see seasonal, half yearly or annual savings delivered on canned goods. Overall this has resulted in recurrent savings of £364,7461 over 2013 and 2014 year-to-date.

Even with the price increase of the commodities in canned goods such as tomatoes (5%), solid pack apples (5%) and peaches (10%), we can still demonstrate that recurrent savings are being achieved simply by maximising competition for NHS demand.

Using the experience and knowledge of our Catering team, eAuctions are now being used more in our other procurement programmes where healthy competition flourishes.

Other successful eAuctions

  • With the help of North West trusts, our desktop stationery product range was rationalised to a core range of 159 items with the three stationery suppliers bidding via eAuction to supply those lines. This reduced prices by an average of 40% and resulted in potential national savings of £5.8m2 for the NHS. In order to keep prices low, the range will be eAuctioned every six months.
  • The Working Together Programme set to realise £400,0003 (24%) on exam gloves in a collaboration of seven trusts with all eight suppliers on the framework bidding via eAuction for the aggregated NHS demand of £2.1m.

Find out what eAuctions are running in 2015

Further information

For more information on NHS Supply Chain eAuctions contact your NHS Supply Chain Account Manager.

1 Savings figure is the accumulated value of all savings achieved on canned goods via eAuctions over 2013 and 2014 year to date. The savings have been calculated based on reductions against the previous contract price. The impacts of any price increases resulting from eAuctions have been factored into the overall savings figure. 2 This is a potential national saving, which has been calculated using pricing and purchasing data from 01/02/13 to 31/01/14, and is based on the same volume of customer orders which were placed in that period, being placed in the next 12 months, and by comparing the pricing of the available 168 lines to the pricing on the lines which were previously purchased, in that period, under the Framework Agreement. 3 Projected annual savings figure based on an average price reduction for the seven Working Together Programme Trusts of 24%, calculated based on the band 1 price of the primary product (i.e. the products currently used by Trusts) minus the band 1 price of the awarded product multiplied by the last 12 months actual quantity purchased. Prices and quantities are correct at the time of printing.

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