Recommendation 5

It will be several years before the NHS sees the benefits from NHS Supply Chain’s efforts to improve its business. NHS Supply Chain’s main vehicle for improvement is a transformation programme which is expected to run from 2022–30. We are concerned that the risk to this transformation programme was rated red/amber in August 2023. NHS Supply Chain acknowledges the difficulties it faces in transforming its business. It told us that the seven projects it is running in 2023–24 to modernise the way it works are ‘exceptionally challenging’. NHS Supply Chain is also trying to improve its procurement route known as eDirect, which has had well-known problems since 2018. Most recently, between June 2022 and March 2023, NHS Supply Chain reported that on average more than one quarter (26.9%) of orders made through eDirect were delivered late, by an average of 22 days. It reports an improving picture with 8% of orders now 8 days late. However, NHS Supply Chain acknowledges that there will not be any further progress with eDirect in the next 12 months and estimates that improvements will take 18 months to appear once it has started the enhancement work. We were disappointed that no positive action appeared to be being taken to rectify the lack of warehousing in the South of England as a constraint on the business. Recommendation 5: Alongside its Treasury Minute response, NHS Supply Chain should provide a clear and realistic road map setting out the timetable NHS Supply Chain and efficiencies in procurement 7 for transformation and modernisation and when benefits will materialise. In carrying out this exercise NHS Supply Chain should also examine whether the eight-year timetable should be reduced.