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The NHS is missing out on savings worth at least £500 million a year due to an inefficient supply chain, a report has found. The National Audit Office (NAO) report says that a combination of inadequate information and fragmented purchasing in the supply chain, operated by DHL, means hundreds of millions of pounds are being spent unnecessarily.

A leading provider of healthcare supply chain solutions believes that NHS trusts could save up to £300 million over a three year period, if waste is effectively identified, managed and executed.

Since online or e-auctions came onto the procurement scene in the late 1990s, their use has been increasing by at least tenfold each year.

The savings have been achieved by improved product prices and efficient supply chain service delivery. NHS Supply Chain provides the NHS with an end to end supply chain solution that it estimates can save a typical hospital up to 10 percent in product costs if they switch to its lowest priced suppliers.