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What NHS Supply Chain’s Modernisation Programme and new Buying Principles mean for suppliers

What NHS Supply Chain’s Modernisation Programme and new Buying Principles mean for suppliers

NHS Supply Chain (NHSSC) has confirmed the approval of its Modernisation Programme, a multi-year initiative designed to update and strengthen its operations across procurement, logistics and supply management. Alongside this, it has introduced a set of Buying Principles that outline how it will approach purchasing decisions and work with suppliers.

Modernisation Programme overview

The Modernisation Programme is structured to enhance the organisation’s commercial capability, update procurement systems, and support improved product and service pathways. According to NHSSC, the programme will involve strengthening digital tools, improving processes, and supporting greater consistency across procurement activities. It is intended to ensure that procurement is more efficient, transparent, and aligned with national objectives.

NHSCC says that the Modernisation Programme will enable it to make a step change in its ability to serve the NHS and patients across England, by investing in IT and supply chain infrastructures through a multi-year programme.

Andrew New, Chief Executive Officer of NHS Supply Chain, commented: “This investment will be used to grow the value of our procurement and delivery services to meet the needs of all of our service users and stakeholders in a resilient and modern system-centric way.

“It will also enable us to address our critical IT resilience risks, as well as delivering our commitment to return a minimum of £1 billion of recurring annual value to the NHS by 2030.”

A short explanatory video released by NHSSC highlights several areas of development within the programme, including improvements to digital infrastructure, enhanced data visibility, and refined systems intended to deliver better outcomes for the wider NHS. The programme is described as a significant step in preparing NHSSC for future demands on procurement and supply management.

NHS Supply Chain image

Buying Principles

NHSSC has also published its new Buying Principles, outlining the standards and considerations that guide purchasing decisions. These principles state that buying decisions will be evidence-based, transparent, and designed to provide value for money while supporting the needs of the NHS.

The principles include commitments to consistency, fairness, and long-term value, as well as an emphasis on quality and ensuring that procurement decisions contribute positively to patient care. NHSSC notes that the updated approach is intended to improve clarity for suppliers, offering a clearer framework for how purchasing decisions are made.

While the principles are high-level, they directly relate to suppliers by setting expectations for the evaluation of goods and services. NHSSC states that the principles will support more efficient, transparent decision-making and give suppliers greater visibility of the factors that influence category strategies and contracting.

Supplier-related details

The Modernisation Programme states that the new Buying Principles and modernisation activities will help create clearer pathways for engagement with suppliers. The principles indicate that suppliers should expect NHSSC to apply consistent criteria and evidence-based methods during procurement exercises.

The Modernisation Programme includes changes to digital tools and commercial processes that will support enhanced interactions with suppliers. These developments are framed as improvements to the way NHSSC manages sourcing, contracting, and ongoing supplier relationships.

Overview of the recent NHS Supply Chain webinar for suppliers

Overview of the recent NHS Supply Chain webinar for suppliers

The BHTA joined NHS Supply Chain’s (NHSCC) latest supplier webinar on 12 November 2025 to hear updates on key procurement developments. The session provided practical information to help suppliers understand upcoming changes, maintain compliance with NHS procurement standards, and engage more effectively with NHSCC.

Supplier support on the NHSCC website

Matthew Griffin, Head of Procurement Operations, outlined how NHSCC is helping suppliers adapt to changes brought about by the Procurement Act 2023. A series of new user guides, short videos, and updated website content has been created to make information easier to access. For more information and access to these supplier resources, visit the NHSCC suppliers section.

Matthew also emphasised NHSCC’s increasing focus on cyber security, with new requirements to safeguard systems and sensitive data. A dedicated section on the website provides guidance on meeting these standards. He highlighted the importance of early engagement with the UK Accreditation Service (UKAS) and recommended suppliers familiarise themselves with the Contract and Tender Process pages.

The updated procurement calendar was also noted as a useful tool showing NHSCC’s current and upcoming contract pipeline.

Maintaining accurate information through the Central Digital Platform

Tim Plackett, Performance and Risk Manager, underlined the importance of keeping supplier information up to date within the Central Digital Platform (CDP). Suppliers should ensure their company and product details, including insurance certificates, accreditations, and financial standing, remain current. This supports smoother tenders and contract management.

Tim encouraged suppliers to provide as much detail as possible, stating to suppliers that a good rule of thumb is to assume buyers know nothing about them. He clarified that Supplier Economic and Financial Standing (EFS) is not a pass or fail measure, but it may affect how NHSCC works with individual suppliers.

Category managers can also provide product data extracts at contract level to suppliers, including some information about competitors, though these exclude sensitive commercial information.

NHS Supply Chain Buying Principles

Byron Vincent, Head of Performance and Business Management, presented the Buying Principles, which reflect NHSCC’s commitment to more sustainable, fair, transparent, and effective procurement. The principles form part of NHSCC’s wider modernisation programme and align with national health objectives under the NHS 10-Year Plan.

Centred around three ambitions – Buy Smart, Supply Right, and Partner Expertly – the framework aims to deliver £1 billion in cumulative value to the NHS by 2030. Byron explained that NHSCC will place greater emphasis on value-based procurement, assessing the total value of products and services rather than focusing solely on cost.

The seven buying principles are:

  1. Streamline what NHSCC buys and who NHSCC buys from
  2. Separate goods from services for clarity
  3. Base decisions on system-wide data
  4. Simplify and make contracts flexible
  5. Support strategic product selection and innovation
  6. Buy as one NHS to maximise value
  7. Avoid habitual buying and promote continuous improvement