The latest company news from NHS Supply Chain

New operating model wins Best Commercial Project award

Tuesday 12 March 2019

GCF Leadership Conference Award 2019

The Procurement Transformation Programme (PTP), launched in 2016 to design and implement a new operating model for NHS Supply Chain was recently nominated for a Government Commercial Function (GCF) award at the 2019 GCF Leadership Conference.

There were 20 nominations submitted, with six shortlisted for the final award. On Wednesday 27 February the PTP won ‘Best Commercial Project’.

The PTP was commissioned in 2015 to replace the existing NHS Supply Chain contract with NHS Business Services Authority and DHL Supply Chain Limited, following Lord Carter’s report in 2015 into efficiency and productivity in the NHS. The report identified unwarranted variation in procurement across the NHS, resulting in the need to improve operational efficiencies to transform an already fragmented procurement landscape. As one of the biggest publicly funded healthcare systems in the world, the NHS currently spends £5.7 billion on everyday hospital consumables, common goods, high-value healthcare and capital medical equipment.

The new model will help to drive out unwarranted variation and deliver value and savings of £2.4 billion back into frontline services and patient care, while simultaneously establishing the NHS as one of the most effective and powerful procurement entities in Europe.

The PTP, one of the largest transformation programmes in government, procured and embedded a new operating model consisting of 11 new specialist category tower service providers, two enabling service providers for logistics and supporting technology - overseen by a commercially astute management function, Supply Chain Coordination Limited (SCCL), a government-owned limited company. The new management function alone has a scale comparable to that of a FTSE 250 business, with over £2.2 billion worth of services and assets.

Other achievements so far include:

  • transfer of over £2.2 billion worth of services and assets into the new model
  • deliver a new IT infrastructure service to over 1,000 users on a single IT platform
  • optimise the number of products to extract and create value through channeling greater volume of buying through NHS Supply Chain
  • establish a clinical and product assurance function, ensuring product procurement is clinically led – a first for the service
  • deliver significant savings - at the end of December 2018 the team had saved £418.9 million, £121 million ahead of plan and £74.9 million ahead of the financial year 2018/19 cumulative target
  • grow market share from 40% to 47% in 10 months, with the ambition of 80% by 2022
  • establish a board, which consists of an independent chair and non-executive directors
  • set up a new office in Nottingham.


Jin Sahota and Paul Webster receiving the award
Jin Sahota and Paul Webster receiving the award from Gareth Rhys Williams - Government Chief
Commercial Officer at the Cabinet Office

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