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NHS Supply Chain launches new strategic sourcing programme to suppliers

Thursday 23 May 2013

NHS Supply Chain has successfully launched a new strategic sourcing programme, designed to reduce costs and deliver increased value across the healthcare supply chain.

With collaborative working and cost efficiency remaining key themes on the NHS agenda, the foundation stone of NHS Supply Chain’s strategic sourcing programme is working with suppliers to identify opportunities that drive efficiencies across the supply chain and deliver results. The programme will focus on a number of key areas, such as packaging optimisation to reduce costs and material waste, trailer fill to reduce product miles, and supply chain optimisation.

“The launch of the strategic sourcing programme follows a number of successful pilot programmes that have evidenced strong savings opportunities for suppliers,” explains Jonathan Kaye, Head of Strategic Sourcing at NHS Supply Chain. “For example, we recently worked with one supplier of clinical waste containers to redesign the packaging of a selection of their product range. This reduced packaging and transport costs by 63 per cent, as well as saving 46 tonnes of paper and a quarter of a tonne of plastic. 

“It’s about delivering benefits across the board. Suppliers gain from the supply chain expertise within our business and the wider DHL to support the introduction of efficiencies that will help them reduce costs. In turn, this will help to ensure that NHS trusts who purchase from NHS Supply Chain framework agreements are working to meet their own strict savings targets.”

In addition to cost efficiencies, NHS Supply Chain’s strategic sourcing programme has the potential to deliver significant benefits in terms of sustainability. With the launch of the Department of Health’s consultation and engagement programme to develop a new Sustainable Development Strategy for 2014 – 20, this is in harmony with current government policy on carbon reduction.

“Maximising delivery capabilities will reduce vehicle miles and support carbon reduction targets, whilst cutting down on the amount of product packaging used, through packaging optimisation projects, will reduce the amount of material waste generated across the supply chain” continues Jonathan. “It’s about taking a holistic view of the supply chain and identifying where we can work together with suppliers to drive efficiencies that deliver benefits all around. 

“The opportunity for suppliers to then replicate these improvements across other product areas and supply chain routes offers huge potential for suppliers to take the lead in driving efficiencies for customers.”

To find out more about NHS Supply Chain’s strategic sourcing programme, contact strategicsourcing@supplychain.nhs.uk or visit www.supplychain.nhs.uk/strategicsourcing


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Media enquiries:

Jayesha Mistry
07738 071826
jayesha.mistry@supplychain.nhs.uk

Tom Stone
07730 202 668
tom.stone@supplychain.nhs.uk

Joanna Morrison
07776 457201
Joanna.morrison@dhl.com


Notes to editors

About NHS Supply Chain

Follow us on Twitter: @NHSSupplyChain

NHS Supply Chain is operated by DHL as Agent of the NHS Business Services Authority. It supports the National Health Service (NHS) and other healthcare organisations in England and Wales by providing end to end supply chain solutions.

The organisation was formed in 2006 from the NHS Logistics Authority and parts of the NHS Purchasing and Supply Agency (NHS PASA). NHS Supply Chain aims to provide over £1 billion of savings to the NHS by 2016.

NHS Supply Chain manages the sourcing, delivery and supply of healthcare products and food for over 1,000 NHS trusts and healthcare organisations. It provides a single point of access to over 600,000 products ranging from bandages to sutures, from gloves to implants, and even diagnostic equipment such as MRI scanners.

Its management of the procurement process negates an NHS organisation’s need to tender through the Official Journal of the European Union (OJEU). Costs can also be reduced through its one-route solution that consolidates all products onto one invoice and delivery – this saves up to £1* per product in back office administration costs and removes up to 40 deliveries going into a trust compared with ordering goods separately. (*source: NHS Supply Chain 2009 value proposition study with Southampton NHS trust)

To ensure that its products are fit for today’s healthcare market, NHS Supply Chain works with suppliers of all sizes to ensure its range embraces high quality and innovative products; and engages with clinicians, the Department of Health and academic institutions to make sure that it is aware of the current requirements and latest developments in clinical practice.

NHS Supply Chain’s product areas include:

  • Theatres
  • Dental
  • Audiology
  • Catering, including food
  • Infection control
  • Orthopaedics
  • Rehabilitation
  • Capital equipment, including finance and maintenance.

Based in Alfreton, Derbyshire, UK, the business employs around 2,400 staff in ten locations.
http://www.supplychain.nhs.uk.

Delivering value to the NHS