NHS Supply Chain’s new category management approach delivers results

Supply Chain Coordination Limited (SCCL), a radical overhaul in NHS category management that went live…...

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Supply Chain Coordination Limited (SCCL), a radical overhaul in NHS category management that went live on 1st April last year, has already started delivering on its promise of improved efficiencies, enhanced cost reduction and better supplier relationship management, National Health Executive magazine reports.

SCCL is one of the biggest transformation projects in the public sector.

Its goal is to provide a substantially more streamlined operating model for NHS Supply Chain, transforming the formerly deeply fragmented and labyrinthine procurement landscape into a more integrated one that allows the NHS to acquire clinically assured, high-quality products at the best value.

The new model harnesses the spending power of the NHS across Acute, Community and Home Care customers with the aim of securing cost reductions of £2.4bn for NHS trusts within a five-year timeframe.

Procurement practitioners have succeeded in meeting the challenges before them with the new operating model during its first year of implementation.

The business ‘raison d’être’ of the new model was that it would deliver annual cost reductions of £68m.

In fact, during the financial year 2018/19, figures show that it resulted in savings of £286m, chiefly through new features of SCCL such as category towers for improved category management.

Additionally, the initiative has resulted in impressive delivery results, with 98.5% of ordered products accurately reaching their destinations and 99.83% of them arriving on time.

NHS Supply Chain’s share of the health service’s procurement market has expanded in year one from 40% to 53%, with measurably improved analytics and price transparency as well as impressive cost reductions achieved by incentivising category towers service providers to make savings through innovation.

SCCL’s CEO Jin Sahota said: “Our aim is to become a ‘world class’ category management organisation, that delivers value and provides products which are high quality, clinically sound and fit for purpose.”

SCCL appears to be demonstrating that government-owned category management functions can be highly commercially astute.


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