NHS Supply Chain

NHS Supply Chain manages the sourcing, delivery and supply of healthcare products, services and food for NHS trusts and healthcare organisations across England and Wales.

Managing more than 4.5 million orders per year, across 94,000 order points and 15,000 locations, NHS Supply Chain systems consolidate orders from over 800 suppliers, saving trusts time and money and removing duplication of overlapping contracts.

Lord Carter’s report into efficiency and productivity in the NHS, published in 2015, identified unwarranted variation in procurement across the NHS, resulting in the need to improve operational efficiencies to transform a fragmented procurement landscape. To undertake this transformation the Department of Health and Social Care established the Procurement Transformation Programme (PTP) to deliver a new NHS Supply Chain.

The new NHS Supply Chain was designed to help the NHS deliver clinically assured, quality products at the best value, through a range of specialist buying functions. Its aim is to leverage the buying power of the NHS to negotiate the best deals from suppliers and deliver savings of £2.4 billion back into NHS frontline services by the end of the financial year 2022/23.

The new model consists of eleven specialist buying functions, known as Category Towers, delivering clinical consumables, capital medical equipment and non-medical products such as food and office solutions. Three enabling services for logistics, supporting technology and transactional services underpin the model.

Key benefits the new NHS Supply Chain will bring NHS trusts and suppliers include:

NHS Trusts

• Savings channelled back to frontline services

• Releasing more time for core clinical activities

• Greater NHS clinical involvement in purchasing decision

• More effective introduction of new products.

Suppliers

• Lowering sales and marketing costs

• Single route into the national market

• A joined-up approach across the NHS

• Clear route for innovative products.