Case Study:

Acute Trust saves £3.3M in 12 months through procurement cost reduction.

Client

An NHS Trust employing 5,000 staff providing a range of acute and community based services to 380,000 people.

Under financial pressure to improve financial position, commenced an ambitious initiative to drive a £3m reduction in non-pay expenditure

Approach

  • £55m targeted from a possible £70m of non-pay expenditure
  • Initial Spend Analysis & Opportunity Assessment identified and planned a 12 month programme to deliver £3m savings
  • More than 114 individual sourcing projects across 25 categories – clinical, non-clinical, estates & facilities and IT
  • Variety of sourcing and procurement strategies used – from national frameworks, mini-comps to large scale OJEU tenders

Results

Total saving of £3.3m delivered

Highlights Saving
Orthopaedics 26%
Examination gloves 27%
Waste 29%
Beds & Mattresses 67%
Security 28%
Cannulas & Catheters 21%

 

  • Managed supplier interaction through a dedicated Product Change Programme brought supplier-led product innovation delivering cost reduction and improved patient outcomes.
  • Transformed procurement from an administrative, compliance focussed, back-office unit to an efficient operation, involved in all non-pay and capital expenditure decisions. HSJ Award Finalist

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