Source · Select Committees · Public Accounts Committee

Recommendation 18

18 Accepted

Modernisation challenges and persistent delivery delays plague NHS Supply Chain's eDirect procurement route.

Conclusion
NHS Supply Chain is also trying to improve its procurement route known as eDirect, which has had well-known problems since 2018. Some £1.5 billion of orders came through this channel in 2022–23.29 NHS Supply Chain acknowledged that from a trust’s perspective, while eDirect is working as it was designed, it is no longer what is needed to match the technology in some hospitals. NHS Supply Chain will therefore have to modernise at the same pace as NHS trusts are modernising their technology.30 NHS Supply Chain reported that, over the period from June 2022 to March 2023, on average more than one quarter (26.9%) of orders made through eDirect were delivered late, by an average of 22 days.31 NHS Supply Chain reported that there had been further 22 Q 126 23 Q 64; C&AG’s Report, paras 3.3–3.5 24 Q 64; C&AG’s Report, Figure 10 25 Q 64 26 Qq 119–126 27 Qq 105–106; C&AG’s Report, Figure 13 28 Q 106 29 C&AG’s Report, para 2.21 30 Q 100 31 C&AG’s Report, para 2.21 NHS Supply Chain and efficiencies in procurement 13 improvements since, with 8% of orders now eight days late. It is aware that there is still some way to go and that, further improvements will be slow to materialise. It told us that there will not be any further progress with eDirect in the next 12 months when it can put in place a new service provider and start to replace the old technology. From then, it estimates that improvements will take 18 months to appear.32 Reporting savings
Government Response Summary
The government agrees and commits to NHS Supply Chain submitting a business case for the eDirect modernisation programme by Winter 2024, which will outline a detailed timetable and plan for implementing improvements, subject to necessary approvals and funding.
Government Response Accepted
HM Government Accepted
5.1 The government agrees with Committee’s recommendation. Target implementation date: Winter 2024 5.2 NHS SC has been developing a variety of inputs required to deliver the modernisation programme. These will be brought together for submission of the business case by winter 2024. This submission will consider the overall timetable and include a programme for the recommended approach including a benefits realisation plan. 5.3 Key activities that will enable the implementation of the business case include: • agreement of the annual business plan for 2024-25 by NHS England in May 2024 • the Department’s approval of a professional services business case • development and submission of the business case by NHS SC by Winter 2024 • approval to proceed with the recommended option by NHS England, DHSC and HMT • delivery of the plan by NHS SC (subject to business case approvals) 5.4 NHSE’s approval of NHS SC’s annual business plan and funding is inextricably linked to its own funding settlement being confirmed by government. NHS funding for the 2024-25 financial year was confirmed at the Spring Budget published in March 2024. NHS funding beyond 2024-25 will be agreed as part of the next 2024 Spending Review.