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First steps towards new NHS procurement and logistics models get underway

Will new model save the NHS money?

The Department of Health has put the £730m NHS logistics contract up for tender as part of its future operating model for procurement.

The contract will last initially for three years with the option to extend it twice for 12 months. The winning bidder will provide everything from transport, warehouses and inventory to customer services and the delivery of continence products.

The new contract will replace the existing one between DHL and NHS Business Services Authority.

The first of 11 procurement category towers, also part of the future operating model, will start in October when the Crown Commercial Service takes over the contract for office supplies to the NHS.

The DH says the new model for office supplies will save £4m (4%) over three years and will act as a pilot for larger upcoming procurement categories. The procurement towers cover medical, non-medical and capital.

Further information

Health Care Supply Association: News from the future operating model

Health Service Journal (HSJ): DH puts £730m NHS logistics contract on the market

HSJFirst national procurement contract aims for four per cent savings

Website: Crown Commercial Service

Wellards: Procurement towers leave NHS unimpressed