NHS Supply Chain has officially announced the launch of a new procurement process, ahead of current contracts coming to an end in 2023.
The organisation, which manages sourcing, delivery and supply of products to NHS Trusts across England and Wales, is launching formal procurement activity as part of its Target Operating Model (TOM). Procurement processes will focus on new category management services, ready for implementation by the end of 2023.
Andrew New, the Chief Executive of NHS Supply Chain, said in a recent press release announcing the launch of the procurement process:
“The landscape for Procurement and Supply Chain has changed creating a need for a broader range of priorities in our decision making. This includes total cost, environmental impact, supply chain resilience, social value, quality, flexibility, and availability. This broader focus requires a different approach in how we develop, and add new, capabilities but also how we ask our suppliers to operate.
“This is an exciting time for NHS Supply Chain as we set out our vision and strategy for the future enabled by the next iteration of the operating model, integrate Personal Protective Equipment back into a single supply chain, and are focussed on delivering a whole range of high value products and services that makes it easier for the NHS to put patients first.”
Submissions open for CMSPs
NHS Supply Chain published its official Invitation to Tender (ITT) on 11th April. Suppliers are invited to submit their completed questionnaires, stating their suitability to operate as a Category Management Service Provider (CMSP) to procure goods and services on behalf of NHS Supply Chain.
The procurement process will focus on four separate areas, split into four different product groups.
The deadline for submissions is 1st June 2022, and it is expected that contracts will be awarded by early 2023. They’ll run for an initial period of 45 months. This excludes the three-month implementation period, and there may also be the option to extend contracts for a further 24 months.
This represents a lucrative opportunity for the successful applicants, as the total value of the contracts to be awarded is approximately £198 million.
NHS Supply Chain manages more than 8 million orders every year, supplying NHS organisations and trusts in over 17,500 locations. As part of its new Target Operating Model (TOM), it aims to save the NHS at least £2.4 billion by 2023/2024. It plans to do this by leveraging the buying power of the NHS, in order to deliver much-needed funds back into frontline services.
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