Why Floor Stock and Demand Aggregation should be on your radar

Two LPP activities directly target the pricing and supply of common products across NHS organisations: Floor Stock and Demand Aggregation.

The recently published NHS Procurement Atlas of Variation is based on 100 products sourced through NHS Supply Chain, and LPP hasn't contributed to the Atlas - LPP works on products and services not usually provided by NHS Suppy Chain. However, these activities are directly aimed at enabling the NHS to act as one:

1. Floor Stock - our total solution framework has been designed to create competition for NHS Supply Chain and currently provides 1,700 commonly used products through Office Depot - prices have been benchmarked and show around 9% savings on NHS SC prices, even after recent aggressive price cuts. This case study from Barking, Havering and Redbridge demonstrates how to implement Floor Stock and achieve not only price savings but efficiency savings - BHR's non-stock delivery times have reduced from 14 days to just one day. Contact marc.osborne@lpp.nhs.uk for more information.

2. Demand Aggregation Pilot - we're about to issue a full update on progress, but it was interesting to note that anti-embolism stockings feature in the 100 products. This is the next category to go for tender as part of the Pilot. DAP is about taking committed spend to market. 24 trusts are engaged with the DAP on this category, with a combined spend of £3.3m per annum. The current 8 suppliers will be reduced to one with one common competitive price list after a the tender and eAuction. We look forward to bringing you the results of the eAuction in the near future. Contact steve.ellesmere@lpp.nhs.uk for more information.

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