DHL Logistics has won a decade-long deal amounting to GBP 1.6 billion in revenue to manage a total spend of GBP 22 billion with the UK Government’s Department of Health. DHL plans to target over GBP 1 billion savings over the contract period and will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority.
This contract ensures that DHL is responsible for the delivery of all procurement and logistics services across an initial 500,000 products to support 600 hospitals and other health providers in England. It ensures that public health authorities are able to dedicate more resources to patient care and continue to manage their cost base efficiently. The contract is said to lead to the creation of over 1,000 additional positions within the company.
The NHS Supply Chain will manage a wide range of products including key supplier and maintenance contracts, food, bed linen, office equipment, stationery, cleaning products, patient clothing, medical and surgical equipment dressings and provisions. The chain will also have its own management team and be governed by a Board dedicated to managing the performance of the operations and will be overseen by the NHS Business Services Authority.
Last year, DHL opened a new 250,000 sq ft UK-based distribution centre as a stockholding hub for food and other products. Approximately 1,000 extra employees were recruited to manage the distribution centre. Another distribution centre is to be opened in 2012.
