NHS Supply Chain delivers £250mn of savings, nearing £300mn target
NHS Supply Chain and NHS Business Services Authority have achieved over £250mn cash-releasing savings which should assist Trusts in maximising their procurement budgets.
These cash-releasing savings have been delivered against the £300mn target set for September 2018 by the Department of Health.
Gerry McGeary, Head of Supplier Management, NHS Business Services Authority said: “Our Trusted Customer programme, which serves as the voice of the customer, ensures that NHS Supply Chain’s procurement strategy has contributed to the delivery of these significant savings.
“We seek to encourage more joint working between all stakeholders in order to deliver the full £300mn cash-releasing savings target by the end of September 2018.”
David Pierpoint, Chief Operating Officer, NHS Supply Chain, commented: “This is a great achievement and it’s only by working in collaboration with our customers and suppliers on our savings programmes such as the Nationally Contracted Products (NCP) programme, High-Cost Tariff-Excluded Devices (HCTED) and Compare and Save that it’s been possible to make these savings.”
In addition, the NHS Supply Chain Capital Solutions Team has achieved the overall target set by the Department of Health of £158mn cost avoidance savings ahead of its due date of September 2018.
This achievement has benefitted many NHS trusts who have purchased Capital medical equipment through NHS Supply Chain.
Jason Lavery, Director NHS Supply Chain Capital Solutions explained: “The key driver for these savings is the better utilisation of the Department of Health Capital Equipment Fund.
“Through working collaboratively with local and regional customer groups, we have been able to aggregate and leverage national demand within NHS capital medical equipment. The Fund has also provided the opportunity to commit bulk orders to suppliers of radiotherapy equipment as part of the national £130mn replacement plan to support the treatment of cancer”.
NHS Supply Chain is operated by DHL and managed by the NHS Business Services Authority. It supports the National Health Service (NHS) and other healthcare organisations in England and Wales by providing end to end supply chain solutions.
The organisation was formed in 2006 from the NHS Logistics Authority and parts of the NHS Purchasing and Supply Agency. The initial contract which was due to expire in October 2016 has been extended for a further two years until October 2018.
Tradeshift: Pioneering eProcurement and Digital Trade
Tradeshift helps transportation and logistics organisations digitally transform their processes. The company offers a suite of services, including spend management, accounts payable and invoice automation, eprocurement, and supplier collaboration through a dedicated B2B supply chain marketplace of more than one million businesses.
As disruption and digitisation continue to accelerate, demand for Tradeshift’s solutions has grown dramatically. The company recently announced the signing of 20 new global enterprise customers since the beginning of its financial year on 1 February, while the number of active businesses transacting on the Tradeshift platform rise by 52 per cent year on year.
Tradeshift Chief Revenue Officer Christope Bodin expects that growth trajectory to continue, as the economy begins to fully reopen and the world works towards recovering from the pandemic. “We are well positioned to support the wholesale digitalisation of business processes,” Bodin said. “For organisations looking to grow in a post-COVID economy, this is fast becoming an organisational standard.”
Tradeshift in Brief
- HQ: San Francisco, USA
- Employees: 800 located in offices in 13 countries
- Customers: 500+ in 190+ countries
- Total on-platform transaction value: $1tn
- Platform: 1.5m companies connected
Key Tradeshift customers: Volvo, Kuehne+Nagel, DHL, Air France-KLM Group
Tradeshift: From $1 to $1 trillion
The company was established with a mission to “connect every company in the world, digitally,” according to Lanng, and followed the trio's earlier product EasyTrade, a pioneering open-source trade platform.
In July 2021, just over a decade since launch, Tradeshift announced passing a new milestone: the cumulative value of transactions processed across its platform passed the $1 trillion threshold. To put that in perspective, Tradeshift said it took two years to reach the $1bn milestone.
Commenting on Tradeshift’s current and future standing, chief executive Christian Lanng said: “We’ve helped a lot of businesses to stay operational and get paid during an extremely volatile period. Every time a business joins our platform it unlocks a whole ecosystem of relationships that we can help to digitise. This sets us apart from the majority of enterprise software providers who remain preoccupied with building connections one at a time.”