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DHL
Logistics has won a 10-year deal totaling GBP 1.6
billion /€ 2.3 billion in revenue to manage GBP 22
billion/€ 32 billion total spend with the UK
government’s department of Health, the web site
www.shippingline.biz said. DHL will target over GBP 1
billion/€ 1.4 billion savings over the contract period
back to the English National Health Service (NHS). Klaus
Zumwinkel, CEO and chairman of Deutsche Post World Net,
said the contract marked the significant success of the
group’s strategy: “After the takeover of Exel and given
DHL’s extensive expertise in the health sector, we were
able to make our customer a truly convincing offer. We
now reap the benefits of both our internationalization
strategy and our broad product range.”
DHL
under the agreement, DHL will be responsible for
delivering all procurement and logistics services across
an initial 500,000 products to support 600 hospitals and
other health providers in England. The business will
ensure that public-health authorities can dedicate more
resources to patient care and continue to manage their
cost base. It will help protect existing jobs and lead
to the creation of over 1,000 additional positions.
John
Allan, chief executive of DHL’s logistics division and
management board member of Deutsche Post World Net,
says, “This contract is both good for staff and good for
the NHS. We are committed to targeting savings on behalf
of the department of health that can be directed back to
patient care by building upon the success of both NHS
Logistics and some of the scope of the NHS Purchasing
and Supply Agency. The contract will ensure that NHS
Trusts get access to a wide range of high-quality,
innovative products that will be selected by having
extensive dialogue and testing procedures with
clinicians. We are thrilled to play such a major part in
this change to manage and deliver a world-class supply
chain for the NHS.”
John
Pattullo, chief operating officer for DHL Exel Supply
Chain, Europe, Middle East and Africa, adds, “By
applying commercial experience and procedures to core
logistics and procurement functions, and working very
closely with the supplier community, we now have a
unique opportunity to deliver innovative, high-quality
products to support public health in
England.
This is exactly the kind of strategic sourcing deal
where we think we can generate major value for our
customers, in this case the NHS.”
The
range of products NHS Supply Chain will manage
encompasses a wide range of goods including key supplier
and maintenance contracts, food, bed linen, office
equipment, stationery, cleaning products, patient
clothing, medical and surgical equipment (such as
operating theatre equipment and machinery) dressings and
provisions. NHS Supply Chain will have its own
management team and be governed by a board dedicated to
managing the performance of the operations. In addition,
it will be overseen by the NHS Business Services
Authority, a government body responsible for managing
core public-sector support services.
In 2008
DHL will open a new 250,000-sq-ft UK-based DHL
distribution center (DC) to act as a stockholding hub
for food and other products. It is expected that around
1,000 extra employees will be recruited to manage this
DC and an additional DC in 2012.
With
extensive experience in the health-care sector,
including over five years’ experience with the former
NHS Logistics, DHL will build upon existing knowledge,
relationships and capabilities to pass savings back to
the department of health. In addition, DHL will have
freedom to invest and develop the business along
commercial best practice, work even more closely
alongside industry professionals and suppliers, and
introduce more employees to the benefits of working
alongside DHL. |
