How will the new NHS Supply Chain operating model affect small business suppliers?

health - NHS supply chain

NHS procurement has no choice but to change. The NHS has been given the challenge to deliver £22 billion in savings by the end of the financial year 2020/2021. £700 million must be saved through improving procurement efficiency.

If your business wants to win NHS tenders and wants to learn more about the NHS Supply Chain operating model, read on.


NHS has reviewed its procurement strategy

Professor Duncan Eaton, Executive Advisor to the All-Party Parliamentary Health Group and Chair of P4H England, believes that NHS procurement is at a “major crossroads”. Earlier this year he said that the NHS Supply Chain operating model (formerly the Future Operating Model) “will have a significant impact on healthcare procurement strategies.”

A report collated by iGov Survey “Impact of Procurement in Healthcare: Challenges and Opportunities 2018” revealed that two-fifths of participants would review their procurement strategy in response to the roll-out of the new operating model.


Changes for suppliers

With so much changing, many SME suppliers are concerned about how the new operating model will affect their business and their chances of winning work with the public sector.

The purpose of the new operating model is to streamline the number of suppliers the NHS is working with. It aims to give the British tax payer and NHS the best value for money.

Although the number of suppliers may be reduced, this will lead to more valuable opportunities for suppliers currently working with the current NHS Supply Chain. Other benefits for smaller businesses include reduced sales and marketing costs, as the new operating model will have a single point of contact for supplying into the NHS, meaning that smaller businesses will not need to approach different Trust procurement teams across the country.

This single point of contact will lead to a streamlined procurement process for suppliers as they will not need to complete multiple tenders – a much more efficient method for SMEs that may be lacking in resource and time.


Find NHS tenders with Supply2Gov

If you are looking for NHS tenders that are relevant for your business, in the area where your business wants to work, Supply2Gov can help.

Our users can get started for free, choosing a local area within the UK in which they want to receive NHS tender alerts.

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