Background

Basildon University Hospital NHS Trust serves a large population with complex healthcare needs.  Procurement was previously fragmented, with multiple teams managing purchasing independently across departments, leading to inefficiencies, transactional, inconsistent supplier engagement, and limited cost control.

Challenges:

• Siloed procurement processes across departments
• Lack of standardisation in product selection
• Poor data visibility on procurement spend
• Weak supplier performance management
• High costs due to lack of strategic sourcing

Objectives:

• Centralise and modernise procurement processes
• Leverage buying power to reduce costs
• Improve supplier relationships and compliance
• Enhance data-driven decision-making
• Support clinical outcomes through better supply chain reliability

Transformation Approach

1. Spend Analytics & Data Transparency

• Implement a digital procurement platform to track spending, contracts, using patterns and supplier performance
• Used insights to identify high-spend areas and duplication of products

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2. Centralised Procurement Function

• Merged department-level purchasing into a single strategic procurement team
• Worked with the team to move from transactional to strategic procurement
• Introduced a category management approach to manage spend by category (e.g. clinical and non-clinical)

3. Strategic Sourcing & Standardisation

• Reduced supplier base by 20% to improve volume leverage
• Standardised products across departments (e.g. wound care, gloves, procedure packs)
• Negotiated multi-year contracts with key suppliers to secure better pricing and stability.

4. Clinical Engagement

• Involved clinical staff in product evaluation and trials
• Build a Clinical Procurement Innovation and Reference Group to align product choices with patient care standards

5. Supplier Relationship Management (SRM)

• Identified high risks and complex contracts
• Launched a structured SRM programme to improve communication, resolve issues quickly and encourage innovation
• Developed joint cost-saving initiatives with key suppliers

Results

• Cost savings: £5m in annualised procurement savings
• Process Efficiency: 40% reduction in purchase order processing time
• Standardisation: Reduces SKUs (stock-keeping units) by 25%
• Compliance: Improved contract compliance from 60% to 80%
• Clinical Impact: Better product consistency and availability, reducing clinical variation

Key Lessons Learnt:

• Strategic procurement is more than cost-cutting, it supports quality, compliance and efficient care delivery.
• Clinical engagement ensures that quality is maintained and ensures that cost savings don’t compromise patient care.
• Digital tools and data visibility are essential for sustainable procurement transformation.