Huge logistics contract changes hands
NHS Supply Chain has awarded the contract for the management of its logistics services to GXO.
THE COMPANY will be taking over the contract for storing and delivering healthcare products to the NHS on behalf of NHS Supply Chain from October this year, when the current outsourced Logistics Services Provider’s contract expires.
The contract is for an initial period of seven years, with a possible extension of up to 36 months. The contract is said to be worth £2.5 billion.
NHS Supply Chain chief executive officer, Andrew New says: “We’re pleased to announce GXO as the new service provider for our logistics services. Running our eight distribution centres across England and keeping our significant fleet of more than 300 delivery vehicles on the road is a key part of what we do to supply the NHS with more than 35 million healthcare products every year. We’re an important part of the healthcare system, ensuring the NHS can put patients first.
“As well as running our normal logistics services, looking forward to the future, we will be developing our logistics services with GXO to best meet the growing needs of the NHS.”
“We are extremely proud to have been selected to serve the NHS, through NHS Supply Chain as its new logistics partner,” adds Gavin Williams, managing director, GXO UK & Ireland. “Combining our sector experience with the technology expertise that supports many of the UK’s leading businesses will optimise the NHS’s logistics services for healthcare providers and taxpayers. We are committed to an excellent quality of service to hospitals and patients at home, increasing productivity and supporting our NHS so that it can focus on patients, its ultimate priority.”
GXO will be contracting with Polar Speed to provide NHS Supply Chain’s Home Delivery Services.
There will be a transition period over the next few months to ensure a smooth handover of sites and teams from the current logistics provider to GXO and Polar Speed.
