NHS supply chain: an overview of the new model

The new NHS supply chain model became operational in April 2018. It will help to…...

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The new NHS supply chain model became operational in April 2018. It will help to expand customer engagement in the long run, and the NHS says that customers will play a prominent role while interfacing between Trusts and Category Towers.

The new NHS supply chain model

The new supply chain model will provide optimal procurement and logistics support to the NHS and be an integral part of it. However, the NHS Supply Chain will deliver trusts clinically safe and high-quality products at the most competitive prices. The NHS believes that the new model will help save £2.4 billion in the first five years and these savings will be reinvested to improve the front-line services it offers.

Operation of the new NHS supply chain model

The NHS intends to save money and make the new model successful by undertaking the following measures:

Increase in the volume of products purchased from the national route. It will help to combine the demand of the products nationally, ensuring value for money.
Ensure usage of clinically correct products as standard to prevent unnecessary deviation in the system.
Using enhanced buying power to positively affect purchasing behaviours and ensure delivery of the best products at attractive prices.

The NHS has abandoned the previous service and allotted 14 contracts to different organisations, which will be responsible for procurement and logistics for the next three years. If the new organisations meet the performance and price goals established by the NHS, their contracts will be extended, albeit for a short period.

Structure of the NHS Supply Chain

NHS Supply Chain will issue, or has issued, contracts for the following services:

  • 11 Category Tower service providers comprising a team that will concentrate on buying products for specific product categories
  • Logistics
  • Supporting IT

Transactional services, which will be provided in-house

The Supply Chain Coordination Limited, which is a new organisation and has ended the Intelligent Client Coordinator, will manage and supervise the new contracts and services. The organisation will also be responsible for customer engagement. It will function as the central service delivery.

Steve Trainor

Steve has over 28 years of success as CPO, MD and Procurement BPO leader in a range of industries. Steve is COO at Odesma, responsible for Odesma’s delivery capability & infrastructure.

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