Transport of goods, carbon efficiency and logistics 22nd

Transport of goods, carbon efficiency and logistics 22nd

Transport of goods, carbon efficiency and logistics 22nd November 2017 Introduction NHS Supply Chain DPDHL UK landscape Case Studies making a difference for the NHS

Urban Consolidation Inbound Logistics Way forward NHS Supply Chain NHS Supply Chain is the only provider with OJEU compliant frameworks across its full range Demographics UK Population Density Areas with the highest number of residents aged over 65 Devolved Authorities

9 Combined Authority Status 1. London Devolution deal - long standing Mayor Sadiq Khan (Labour) 2. Greater Manchester Established Combined Authority - Devolution Deal Metro Mayor Andy Burnham (Labour). 3. Tees Valley Established Combined Authority - Devolution Deal Metro Mayor Ben Houchen (Conservative). 4. Liverpool Established Combined Authority Devolution Deal

Metro Mayor Steve Rotheram (Labour). 5. West Midlands Established Combined Authority - Devolution Deal Metro Mayor Andy Street (Conservative). 6. Cambridge & Peterborough Established Combined Authority - Devolution Deal Metro Mayor James Palmer (Conservative). 7. West of England Established Combined Authority Metro Mayor Tim Bowles (Conservative). 8. Cornwall Devolution deal 9. North East Discussions re-opened after original deal was rejected.

10. Yorkshire Early discussions, no deal agreed yet. 11. Sheffield City Region Metro mayor election delayed until May 2018, after High Court ruled public consultation illegal. 12. Greater Lincolnshire Deal currently off, after County Councillors voted against it. 9 9 3 10 10 10

2 4 11 11 5 7 8 12 6 1 NHS Challenges 72% of NHS carbon footprint comes from the procurement of goods and services

Outdoor air pollution is contributing to about 40,000 early deaths a year in the UK NOx Increase in activity and associated goods and services required 18% of emissions are associated with the last 1% of the journey 18% of NOx at a sample trust associated with vehicles making deliveries

Urban Consolidation - London Consolidation Centre Historical Position Delivery profiles overlapping due to NHS IT district set up Customers could receive multiple deliveries to the same stores on the same day Sub optimal utilisation of vehicles and drivers Excessive distance travelled Historic delivery profile different colours represent different originating distribution centres Urban Consolidation - London Consolidation Centre Solution Cross Dock Centre in Enfield Central master plan for LCC deliveries across all 3 Distribution Centres focussing on multi drop activity Trunking schedule (on double deck trailers for maximum utilisation) from the 3 host distribution centres to LCC

Secondary deliveries to customers on LCC fleet Small consignments delivered direct to customer from Host DCs via UK Mail network Public sector & DHL collaboration DHL operated Camden council consolidation centre moved to LCC Sharing management, space and resource Home Delivery Service outbase moved to LCC further resource sharing and operational synergies Urban Consolidation - London Consolidation Centre Benefits Reduction of 6 vehicles for NHS Supply Chain Annual reduction of 281,000 miles travelled (20% of miles related to London deliveries) Annual reduction in emissions of 250 tonnes of CO2. Annual cost saving of 160k Improved visibility and planning processes Improvement in customer experience Reduction in no of physical deliveries to hospital stores Locally based fleet with ability to flexibility to respond quickly to daily requirements and issues

Next Steps Platform for collaboration Evaluation of roll out of approach in UK regions principally North West (Manchester / Liverpool) and South West (Bristol and beyond) What is Inbound Logistics? A supplier collection service, dealing only with NHS Supply Chain inbound volume Run by NHS Supply Chain for Suppliers to NHS Supply Chain Why? A realisation of the potential to use the NHS outbound delivery fleet To generate benefit to NHS Supply Chain. To provide a mutually beneficial route to market for suppliers Driven through DHLs commitment to reduce operating costs to the NHS, generate cash releasing savings and part of DHLs mission 2050

Inbound Logistics - Network European Freight NHS SC Network Bellshill Containers Normanton Dublin DHL Healthcare Fleet Runcorn Alfreton COALVILLE Rugby NHSSC Coalville Parcel Carriers NHSSC Depots Bridgwater Bury St. Edmunds Maidstone Inbound Logistics Scale and Benefits 152 Suppliers 1000+ pallets daily Operational cost savings 195 FTL Deliveries per week 1,380 tonnes CO2 saved per annum

87% Less Gate Receipts per week Way Forward Consolidation Reduce final mile activity and associated emissions Focus on urban population centres North West Yorkshire North East Collaboration STPs Devolved authorities Other public sector organisations Private Sector Way Forward

Understand the true supply chain Measure Map Quantify Think Differently Break down the Silos Innovate how can we serve the rural / coastal populations more effectively Work with those who can add value

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