£300 million cash target met five months early

NHS Business Services Authority and NHS Supply Chain have reported that its £300 million cash-releasing target has been achieved five months ahead of plan.

Set by the Department for Health and Social Care, and forming part of the Carter Initiative, the savings have been made through price reductions, savings programmes, such as the NCP programme, and commitment discounts.

Gerry McGeary, head of Supplier Management, NHS Business Services Authority said: “This is a significant achievement and I would like to thank everyone who has contributed to its success. 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 £2.4 billion 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.”

Tim Slater, chief executive Officer, NHS Supply Chain, added: “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.”