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Supply Chain Support for the Outsourcing of the NHS Consumables Supply Chain

Industry -  Government/Public Sector - Health

Issue

  • Following various strategic reviews the Department of Health determined that more value for money could be generated by outsourcing an integrated, end to end supply chain for the provision of Consumables and related Healthcare products within the English NHS
  • Two NHS bodies were involved - the NHS Logistics Authority (5 Distribution Centres, 1500 staff, 2 major out-sourced providers) and elemnets of the NHS Purchasing and Supply Agency (80 staff across 3 locations). These were not integrated.
  • The scale of the opportunity represented annual spend of ~£3.7bn across a range of 10 categories of product

Solution

  • Working as part of a small team within the Department of Health, Commercial Directorate a range of support was offered including:
    • authoring operational / functional aspects of the Invitation to Negotiate (ITN) and contract
    • bid evaluation
    • bid process support
    • management of the due diligence process
    • business case development and approval process support
    • negotiation support
    • training / on-boarding of the contract management team
    • transition planning support

Benefits

  • The largest ever outsourcing conducted by the NHS and one of the largest ever in Europe
  • Putting in place the foundations of a world class supply chain for the English NHS
  • Projected savings are significant (> £1bn)

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