Developing a shared procurement capability across five ambulance trusts

Impacts

Savings
£500k
Potential savings based on just ~2% of Trusts' total addressable spend
Alignment
Identified strategic and operational opportunities to align procurement data and ways of working
Strategy
Developed consensus on a preferred model and implementation plan to deliver collaborative procurement

Opportunity

The ambulance sector is under severe pressure to deliver a high-quality service with increasing limitation on its financial resources. Individual trust’s currently purchase identical and interchangeable products at different prices with separate procurement functions, leading to a collective overspend.

Five trusts identified an opportunity to deliver savings as a collective through collaborative procurement. This required reaching alignment on best value suppliers and products, and leveraging collective buying power to negotiate lower prices.

Approach

TN completed a baseline analysis of each trust's current spend across a range of products (e.g., medical consumables) to identify potential savings and co-create an operating model for shared procurement going forward.

  1. Mapped 'as is' state of trust procurement models: Captured and codified each Trust's current procurement models to scope strategic and operational benefits of collaboration
  2. Baselined procurement datasets: Aligned and analysed each Trust's procurement datasets, identifying potential savings that could be achieved through collaborative procurement
  3. Problem solved feasibility: Engaged with expert leads across each trust to validate projected savings and understand risks from a clinical perspective
  4. Designed operating model: Co-created an optimal operating model for shared procurement through an iterative process of engagement with procurement leads and executives and refinement of potential models