• Crown Commercial Service initially given target to save £550,000
  • CCS first organisation within NHS Supply Chain to go live under new model
  • Overall scheme aims to deliver more than £2bn over next five years

The first element of the NHS’s new purchasing model for common goods and equipment has surpassed its initial savings target by £1.5m, according to supply chain chiefs.

In total, £2.1m worth of savings have been achieved through centralising the procurement of items such as stationery, office supplies and office furniture in the last 12 months.

The Crown Commercial Service, which buys the products on behalf of the NHS, was given a target of saving £550,000 when it began operating under the new model in October 2017.

Savings are calculated using the same principles as the previous NHS Supply Chain methodology, except that the price of goods is baselined at the start of the contract rather than using a rolling price as a baseline. 

CCS was the first organisation within the new NHS Supply Chain body to go live under the model. Its work is viewed as a small pilot for the overall scheme, which aims to deliver more than £2bn of savings during the next five years.

CCS, which is an executive agency of the Cabinet Office, is contracted to deliver £4.05m of savings by 2020.

Estimates suggest the NHS spends around £100m annually on the goods now purchased by CCS.

Jin Sahota, chief executive of Supply Chain Coordination Ltd (which runs NHS Supply Chain), said the savings delivered by CCS “demonstrates the ability of the new operating model to deliver real value to the NHS”.

The new procurement model involves hiring specialist procurement organisations to purchase 11 categories of products and services for the NHS.

The six other organisations began buying on behalf of trusts earlier this year.

CCS’ savings achievement was announced earlier this week during the Health Care Supplies Association’s annual conference in Cardiff.