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NW Procurement Development


NHS reaches cash-releasing target five months ahead of schedule

The NHS Business Services Authority and NHS Supply Chain have today announced that they have reached their £300m cash-releasing savings target five months ahead of plan.

The target, set by the Department of Health and Social Care, supports local trusts and forms part of the Carter Initiative; a proposal that estimated £700m could be saved through the improvement of procurement activities.

Gerry McGeary, head of supplier management at NHS Business Services Authority, said: “The voice of the customer is important to us and is at the core of the NHS Supply Chain’s procurement strategy which provides products that meet the expectations of our customers whilst contributing to the delivery of these significant savings.

“We are currently transitioning into the new NHS Supply Chain Operating Model which aims to deliver savings of £2.4b over the next five years. This model will leverage the collective buying power of the NHS to provide clinically assured products at the best value whilst meeting the diverse needs of NHS organisations.”

The key factors for securing the savings were price reductions, delivered through the procurement teams working with suppliers to achieve price reduction; savings programmes such as the NCP programme, a scheme that aggregates national demand in order to purchase products on behalf of the whole NHS; and purchasing commitment discounts from specific suppliers.

Tim Slater, CEO of NHS Supply Chain, commented: “This is a fantastic achievement and I would like to recognise all the hard work that has gone into delivering this £300 million cash releasing target.

“We have worked collaboratively with our customers and suppliers on our savings programmes such as Compare and Save and the Nationally Contracted Products (NCP) programme led by NHS Improvement and this collaboration has been key to achieving this target.”

National Health Executive - 01.05.18