Recommendation 16

NHS Supply Chain has started a transformation programme which aims to bring key improvements to the business. This programme runs from 2022–30 and its focus includes replacing or upgrading legacy IT and improving inventory management and supply chain capacity.23 The transformation programme was rated red/amber by NHS Supply Chain in its risk register as at August 2023, recognising the complex delivery challenges involved.24 NHS Supply Chain acknowledged the difficulties with transformation, in particular how to modernise while continuing to run the day-to-day business. It told us about the seven ‘cornerstone’ projects happening this year which it described as ‘incredibly challenging’ and outlined the challenges of moving from old technology to new. More positively, it noted good progress with a new warehouse near Gorsey Point which it expects will resolve capacity problems in the North.25 It did however confirm it will be unable to achieve 80% market share until it has procured more warehousing space in the South of England, along with technology modernisation, and that will take at least three years.26