Case study – Stock reduction and supply chain efficiency in the NHS

• Multi-site NHS Trust providing acute care to more than half a million people.
• Under financial pressure to improve financial position with a starting point of “too much stock, in too many locations”

• Total inventory of £5.7m which had increased 7% per year
• Undertook review of all inbound supply chains into each site to identify improvement areas and quantify financial impact
• Quantified value of stock in each stock location and current approach to stock management and receipt & distribution
• Defined optimum “to-be” supply chain approach and network
• Defined stock reduction opportunity and implementation plan

Comprehensive transformation plan defining five areas for improvement:

• Transformation of stock management and inbound supply chain.
• Sampling indicated “just-in-case” rather than “just-in-time” stock management, in some case up to 87% overstocking

Total stock reduction of £544k identified