Pharmacy supply chain in new public-private partnership
Trusts in the Avon, Gloucestershire and
Wiltshire Supply Management confederation
· Gloucestershire Hospitals NHS Foundation Trust
· North Bristol NHS Trust
· Royal United Hospitals Bath NHS Trust
· Salisbury Healthcare NHS Trust
· Swindon and Marlborough NHS Trust
· United Bristol Healthcare NHS Trust
· Weston Area Health Trust |
Pharmacy stores: it is hoped that a partnership with a wholesaler
will reduce stock storage in hospital pharmacy departments |
Seven NHS trusts have entered a partnership with a wholesaler to manage and streamline the pharmaceutical supply chain. The trusts are part of
the Avon, Gloucestershire and Wiltshire Supply Management Confederation
(see panel) and after a competitive tender process they have appointed
AAH Pharmaceuticals to run the contract. According to both parties, this
relationship is the first of its kind.
The contract will result in a simplification of the procurement process
for the seven acute trusts in the confederation. Current pharmaceutical
supply chains will be rationalised with the consolidation of stock by
AAH off site before delivery to the hospitals. The aim of the project
is to improve supply chain efficiency, reduce transaction costs and minimise
stock levels held in hospital pharmacies.
Initially, there will not be much of a change in the procurement process
according to Bob Peel, senior pharmacist, procurement, Southmead Hospital
and acting project manager for the partnership. The first change, which
has already occurred, is that the trusts will now deal with only one
wholesaler rather than the two that were used in the past.
In the longer term, items that are currently obtained directly from manufacturers
will be ordered and delivered by AAH. This will help reduce stock holding.
The payment process will also be more efficient as the trusts will pay
AAH directly rather than paying separate invoices to different suppliers,
said Mr Peel.
Across the confederation, over 50 suppliers are currently being used.
One of the first goals of the partnership will be to try to work with
suppliers of products with national contracts under the NHS Purchasing
and Supply Agency supply chain excellence programme. The suppliers should
gain from the partnership with AAH because they will make one delivery
to the depot of the wholesaler, rather than visiting every hospital in
the area.
Commenting on the partnership, Richard Ward, director of purchasing,
Bristol and Weston NHS Purchasing Consortium, said: “We see the
partnership developing to include all our requirements for an efficient
consolidated supply chain, with all our suppliers benefiting from improvements
in cashflow, better business information for forecasting, reduced distribution
and processing costs and accurate reporting underpinned by business transparency.”
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Hospital Pharmacist