The latest company news from NHS Supply Chain

Company news

Customers on track to unlock £150m savings through NHS Supply Chain

On Target for £150m Savings

Monday 21 September 2015

Share this story


NHS Supply Chain’s customers are on track to unlock £150m savings from procurement by March 2016, with £100m1 already delivered.

The continued focus on standardisation is enabling larger volume commitment across a smaller range of products.

On average this means customers are paying 4.5%2 less than they were 12 months ago, with £40.1m of price reductions being a key factor in this.

Breakdown of the £100m savings

Savings TypeSavings (£)
Net price reductions
(Price decreases vs. price increases)
£40.1m
Commitment discounts / rebates3 £48.4m
Lower cost comparable products4 £10.9m
Innovation5 £0.68m
Total £100.1m

Key national savings programmes

Savings ProgrammeDescription
NHS Core List

NHS Core List products are now helping 160 customers achieve savings on everyday consumables by reducing the range of like for like products that they purchase.

This is enabling larger volume commitment across a smaller range of products meaning suppliers can provide improved prices to the NHS as greater economies of scale in manufacturing are being achieved.

See NHS Core List savings opportunities

Core Range

Desktop Stationery Core Range of 159 items rationalised down from 8,500 has delivered up to 40% savings for more than 200 customers, with more savings expected from a mini competition and eAuction later this year.

See Desktop Stationery Core Range savings opportunities

Compare and Save

Through the Compare and Save programme, customers are working with NHS Supply Chain’s local data and clinical nurse advisors to speed up the process of identifying and adopting lower cost comparable products that are clinically acceptable.

In the last 12 months, 307 customers have adopted lower cost comparable products in the following key categories for Compare and Save:

  • Wound care
  • Haemostats
  • Disposable wipes
  • Paper, inks and toners (stationery).

See Compare and Save savings opportunities

DH Consumables Fund

Department of Health (DH) Consumables Fund – is enabling NHS Supply Chain, working in partnership with the NHSBSA to undertake commitment deals with suppliers, generating additional savings to support 325 customers cost improvement targets.

See the DH Consumables Fund savings opportunities

What’s next?

Contact your NHS Supply Chain Account Manager or discuss the key opportunities for your region with your local representative on the NHS Supply Chain Customer Board.

Footnotes

1. Cash releasing savings for the NHS between 1 April 2013 and 31 August 2015
2. 12 month rolling figure to end of July 2015 which compromises of price reductions, commitment discounts and adoption of lower cost comparable products. Of the 4.5% figure, price deflation makes up 1.8%.
3. Trust commitment discounts” refers to savings generated following a commitment by a trust to purchase a specified volume or value of products during a specified period of time. The savings figure stated takes into account only those savings which have been realised to date.
4. Savings from trusts adopting lower cost alternative products that are clinically acceptable.
5. Innovation savings are generated from products either flagged as innovative in the national catalogue (via the NHS Supply Chain Innovation Scorecard) or classified as innovative by customers.

Delivering value to the NHS