NHS Supply Chain

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NHS Supply Chain supports the National Health Service (NHS) in England, and other healthcare organisations in England and Wales, by providing procurement and logistics services.

Contents

NHS Supply Chain exhibition stand NHS Supply Chain.jpg
NHS Supply Chain exhibition stand

History

In February 2016, Lord Carter's report into efficiency and productivity identified unwarranted variation in procurement across the NHS. Following this report, a "new operating model" for NHS Supply Chain was established. The design of a new supply chain service was planned to help the NHS deliver clinically assured, quality products at the best value through a range of specialist buying functions, and leverage the buying power of the NHS to negotiate the best deals from suppliers, with the aim to deliver savings of £2.4 billion over five years.[ citation needed ]

Oversight and operational management of the operating model are by Supply Chain Coordination Limited (SCCL), a company wholly owned by the Secretary of State for Health and Social Care, which began operations in April 2018. Services were transferred to the new model in stages during 2018 and early 2019. [1] Over 200 staff were transferred from DHL Supply Chain and NHS Business Services Authority to the new company.[ citation needed ] Some elements of the NHS Purchase and Supply Agency were also transferred to the new organisation.

Until April 2019, the contract to run the service was managed from 2006 by DHL Supply Chain [2] on behalf of the NHS Business Services Authority. Earlier, the organisation was called NHS Logistics Authority and then NHS Logistics. In July 2018, logistical control of the supply chain was passed from DHL Supply Chain to Unipart. [3]

In February 2018, NHS Supply Chain notified all its NHS clients that Mondelez International, owners of Cadbury chocolate, had been 'delisted' after the company put up its prices, which the agency was "not prepared to accept ... on behalf of [its] customers". [4]

A four-tiered demand management system to “maintain continuity of supply of critical products to the NHS where normal supply is disrupted” was established in response to the persistent problems in global supply chains that began with the rise of Covid in March 2020. In August 2022 it was reported that 271 products were in the two most stringent levels of rationing, including dressings, tracheostomy tubes, products for epidurals, blood collection equipment and ventilators for sleep therapy. [5]

In April 2022, it took over responsibility for the Department of Health and Social Care’s Personal Protective Equipment programme. [6] A group of business analysts researched the ICN advice notices from suppliers in the last two weeks of November 2022, to look for trends and causes of delays in medical equipment throughout the NHS. They found that global component shortages caused over 60% of the NHS's medical equipment delays. The research also found that the number of delays peaked between 30 and 60 days at 22%, before dropping significantly to just over 1% between 90 and 120 days. [7]

Jin Sahota, then chief executive, resigned in September 2020 shortly after the Department of Health and Social Care and the Cabinet Office announced a review of the agency following the crisis in the supply of personal protective equipment. [8] The current CEO is Andrew New, who was appointed in September 2021. [9]

Locations

The organisation has a number of warehouses:[ citation needed ]

There are also office sites in:

There are over 15,000 delivery locations serviced by the organisation. [9]

Related Research Articles

<span class="mw-page-title-main">Supply chain management</span> Management of the flow of goods and services

In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

<span class="mw-page-title-main">Logistics</span> Management of the flow of resources

Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.

A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer. The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.

The idea of [Porter's Value Chain] is based on the process view of organizations, the idea of seeing a manufacturing organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.

DHL is a German logistics company headquartered in Bonn, Germany. It provides courier, package delivery and express mail service, delivering over 1.7 billion parcels per year. A subsidiary of the German logistics firm DHL Group, its express mail service DHL Express is one of the market leaders for parcel services in Europe. DHL Express is Germany's main international courier and parcel service. DHL also operates a separate parcel service targeting the German consumer market in conjunction with Deutsche Post.

<span class="mw-page-title-main">DHL Group</span> German logistics company

Deutsche Post AG, trading as DHL Group, is a German multinational package delivery and supply chain management company headquartered in Bonn, Germany. It is one of the world's largest courier companies. The postal division, Deutsche Post, delivers 61 million letters each day in Germany, making it Europe's largest such company. The parcel division DHL is a wholly owned subsidiary claimed to be present in over 220 countries and territories. DHL Group was the largest logistics company worldwide in 2022.

<span class="mw-page-title-main">Defense Logistics Agency</span> Combat support agency in the United States Department of Defense

The Defense Logistics Agency (DLA) is a combat support agency in the United States Department of Defense (DoD). The agency is staffed by more than 26,000 civilian and military personnel throughout the world. Located in 48 states and 28 countries, DLA provides supplies to the military services and supports their acquisition of weapons, fuel, repair parts, and other materials. The agency also disposes of excess or unusable equipment through various programs.

<span class="mw-page-title-main">Reverse logistics</span> All operations related to the reuse of products and materials

Reverse logistics encompasses all operations related to the upstream movement of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant. The number of publications on the topic of reverse logistics have increased significantly over the past two decades. The first use of the term "reverse logistics" in a publication was by James R. Stock in a White Paper titled "Reverse Logistics," published by the Council of Logistics Management in 1992. The concept was further refined in subsequent publications by Stock (1998) in another Council of Logistics Management book, titled Development and Implementation of Reverse Logistics Programs, and by Rogers and Tibben-Lembke (1999) in a book published by the Reverse Logistics Association titled Going Backwards: Reverse Logistics Trends and Practices. The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer.

<span class="mw-page-title-main">NHS National Services Scotland</span>

NHS National Services Scotland (NSS) is a public body and national health board of NHSScotland.

DHL Supply Chain is a division of Deutsche Post DHL and is affiliated with DHL. Headquartered in Bonn, Deutsche Post has 510,000 employees.

A special health authority is a type of NHS body which provide services on behalf of the National Health Service in England. Unlike other types of trust, they operate nationally rather than serve a specific geographical area.

Unipart Group is a British multinational logistics, supply chain, manufacturing and consultancy company headquartered in Cowley, Oxfordshire, England. It has operations in Europe, North America, Australia and Japan and works across a variety of sectors that include automotive, retail, technology and rail. It is one of the largest privately-owned companies in the UK; being 70% owned by its workforce and pension fund while the other 30% is held by sympathetic institutions.

Owens & Minor, Inc. is a global healthcare logistics company. It employs over 20,000 people in 70 countries. A Fortune 500 company, it was founded in 1882 in Richmond, Virginia, where it remains headquartered. The company has distribution, production, customer service and sales facilities located across the Asia Pacific region, Europe, Latin America, and North America. President and CEO Ed Pesicka joined Owens & Minor in March 2019.

<span class="mw-page-title-main">Emergency medical services in the United Kingdom</span>

Emergency medical services in the United Kingdom provide emergency care to people with acute illness or injury and are predominantly provided free at the point of use by the four National Health Services (NHS) of England, Scotland, Wales, and Northern Ireland. Emergency care including ambulance and emergency department treatment is only free to UK residents and a charge may be made to those not entitled to free NHS care.

The NHS Business Services Authority (NHSBSA) is an executive non-departmental public body of the Department of Health and Social Care which provides a number of support services to the National Health Service in England and Wales. It was created on 1 October 2005 following a review by the Department of Health of its "arm's length bodies". It began operating on 1 April 2006, bringing together five previously separate NHS business support organisations.

<span class="mw-page-title-main">Exel</span> Logistics company

Exel was a supply chain and logistics company operating in North America and Europe, which became a subsidiary of the German firm Deutsche Post in 2005. It reported annual revenues of about $4.2 billion in February 2012.

Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.

SCCL, sccl or other capitalisations, may refer to:

The Chief of Joint Capabilities (CJC) is the head of the Joint Capabilities Group (JCG) in the Australian Department of Defence. The Joint Capabilities Group was raised on 1 July 2017 with the position created as a result, with the inaugural CJC being Air Marshal Warren McDonald. The current chief is Lieutenant General Susan Coyle, who was appointed to the position in July 2024.

Supply Chain Coordination Limited is a company registered in England and Wales on 25 July 2017 to manage the new NHS Supply Chain operating model, adopting its current company name on 15 November 2017. It was set up by the Department of Health and Social Care in 2018, and was intended to save £2.4 billion within 4–5 years. Consultants Ernst & Young were reportedly paid up to £20 million to help to establish the company. Running costs for the financial year 2018/19 were £180 million, but costs are predicted to grow to £250 million in 2019/20 and to £260 million in 2020/21. This will be taken from the tariff payments to NHS trusts.

<span class="mw-page-title-main">Clipper Logistics</span> Logistics company based in Leeds

Clipper Logistics plc is a retail logistics company based in Leeds which serves retailers selling fashion, tobacco, alcohol and other high-value goods in the UK and Europe. It has 47 sites across Europe. The company was listed on the London Stock Exchange until it was acquired by GXO Logistics in May 2022.

References

  1. "Supply Chain Coordination Limited". NHS Supply Chain. Archived from the original on 2 October 2018.
  2. Hancock, Matt (28 March 2019). "Act of Entrustment – Supply Chain Coordination Limited" (PDF). SCCL. Retrieved 21 September 2020.
  3. Daniel, Alex (7 September 2018). "NHS logistics contract worth £730m awarded to Unipart". Supply Management. CIPS . Retrieved 27 November 2020.
  4. Sit, S., Cadbury banned from hospitals over price hike, Supply Management, 26 February 2018, accessed 28 April 2021
  5. "Centre rationing hundreds of medical consumables and products". Health Service Journal. 23 August 2022. Retrieved 29 September 2022.
  6. "Supply chain resilience: supporting the NHS in challenging times". NHS Confederation. 10 October 2022. Retrieved 18 November 2022.
  7. Ford, Malcolm (2023). "Report on product delays within NHS Supply Chain". IT Enterprise Business Solutions.
  8. "Chief exec of NHS agency resigns". Health Service Journal. 19 September 2020. Retrieved 5 November 2020.
  9. 1 2 NHS Supply Chain, New CEO appointed for NHS Supply Chain, published on 28 July 2021, accessed on 12 October 2024