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Contract management of NHS Supply Chain

We oversee the agreement between the NHS Business Services Authority and DHL regarding the management of NHS Supply Chain, a procurement and logistics service for the NHS formerly known as NHS Logistics. Please visit the NHS Supply Chain website for information on the services provided www.supplychain.nhs.uk.

Master Services Agreement

The agreement between the NHSBSA and DHL is laid out in a Master Services Agreement. Following an extension to the NHS Supply Chain contract, the Master Services Agreement was revised and is available in five parts:

MSA Part 1 | MSA Part 2MSA Part 3 | MSA Part 4 | MSA Part 5

Service statistics

As part of the contract management process, management reporting information is gathered and collated on an on going basis to allow monitoring and review of the service. This includes such information as the number of sales each month, a definition of routes to market and the overall value of various aspects of the service.

A summary of this information is created on a monthly basis and is available for general information upon request.

Customer satisfaction

Annual Customer Survey

In 2014, independent market research agency DJS Research were commissioned to carry out the first annual survey of NHS Supply Chain customers. The aim of the survey was to gauge the level of satisfaction with the service provided so that we could find out where to focus our efforts to improve service delivery, accelerate the level of savings provided to the NHS and to reduce internal costs.

Further insight was gained following the 2015 and 2016 Customer Surveys, leading to a Service Improvement Plan that has helped to improve a number of aspects including the content and features of the NHS Supply Chain website, ordering and the home delivery telephony system.

For each survey completed, a donation of £1 has been made to charity, resulting in £1,167 donated following the 2016 Customer Survey. The Royal British Legion Poppy Appeal, Rainbows Hospice, and McMillan Cancer Research have benefited so far.

The surveys are based on a range of Key Performance Indicators and the results from each year are available to download below.

Customer Survey 2014 | Customer Survey 2015 | Customer Survey 2016

Monthly reporting

Independent market research agency, B2B International, carry out a monthly assessment which involves asking a range of customers a set number of questions by telephone. The results are analysed and interpreted to produce an overall satisfaction rating that allows us to more regularly monitor levels of customer satisfaction. The results have been arranged to show the quarterly overall customer satisfaction (based on calendar year January to December).

Quarter 3 2017 overall customer satisfaction

B2B International also collate a monthly Net Promoter Score (NPS) which is an index ranging from -100 to +100 that measures the willingness of customers to recommend a company's products or services. It is calculated by asking multiple customers whether or not they would promote the company to colleagues by using a sliding scale from 1 to 10. Those who select 1 to 6 are identified as a detractors, 7 to 8 as passive and 9 to 10 as promoters. The number of detractors is taken away from the number of promoters to give the Net Promoter Score.

Global standards indicate that a score above zero is good, over 50 is considered to be excellent while 70 or above is 'world class'. Amazon and Apple hold an NPS of around 69 while Marks and Spencer in the UK manage to achieve and NPS ranging between 7 and 30.

July 2017 summary and Net Promoter Score

August 2017 summary and Net Promoter Score

September 2017 summary and Net Promoter Score

 

NHS Supply Chain contract

Following an extension to the NHS Supply Chain contract the agreement between the NHSBSA and DHL will remain in place until 30 September 2018 under revised terms. These terms include a revised reward structure where DHL are incentivised to deliver more value to NHS customers and save more money for the tax payer.

A cash releasing savings target of £150 million has been agreed for delivery by October 2018 in addition to the £150 million target that was surpassed in March 2016. We will continue to work closely with NHS Supply Chain and their customers and suppliers to deliver these combined savings through various initiatives.

If you have any questions or would like to find out more about the NHS Supply Chain contract please see the NHS Supply Chain Contract Extension Q and A, email us at supplier.management@nhs.net or phone us on 01623 702 167.