DHL in NHS supply deal
DHL has signed an agreement with the NHS to increase its share of the medical supply market. DHL will take over 1,650 staff from the public sector NHS Purchasing and Supply Agency, which it expects will result in GBP22 billion (USD41 billion) worth of goods to be delivered, providing some GBP1.6 billion in revenue. The new company will be known as NHS Supply Chain.
The NHS is expected to save 5per cent (around GBP1 billion) of turnover over the life of the project, according to the Department of Health.
Currently, DHL supplies around 45per cent of non pharmaceutical supplies, with the remaining NHS organisations operating alone or in consortia. According to DHL, it hopes to increase its share to between 70per cent and 80per cent, using Novation, the largest US medical supplies company, as a subcontractor.
The deal has attracted criticism from the largest trade union, Unison, which has said “This is taking an award-winning not-for-profit business that shares the savings it makes with the NHS and handing it over to a profit-making one.”
DHL has signed an agreement with the NHS to increase its share of the medical supply market. DHL will take over 1,650 staff from the public sector NHS Purchasing and Supply Agency, which it expects will result in GBP22 billion (USD41 billion) worth of goods to be delivered, providing some GBP1.6 billion in revenue. The new company will be known as NHS Supply Chain.
The NHS is expected to save 5per cent (around GBP1 billion) of turnover over the life of the project, according to the Department of Health.
Currently, DHL supplies around 45per cent of non pharmaceutical supplies, with the remaining NHS organisations operating alone or in consortia. According to DHL, it hopes to increase its share to between 70per cent and 80per cent, using Novation, the largest US medical supplies company, as a subcontractor.
The deal has attracted criticism from the largest trade union, Unison, which has said “This is taking an award-winning not-for-profit business that shares the savings it makes with the NHS and handing it over to a profit-making one.”
