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

Last Updated on 17/11/2025 by Sarah Sarsby

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.