GBP 1 billion/Euro 1.4 billion savings targeted to the NHS over 10 years
Around 1,000 new jobs to be created
DHL Logistics has won a 10-year deal totaling GBP 1.6 billion /Euro 2.3 billion in revenue to manage GBP 22 billion/Euro 32 billion total spend with the UK Government's Department of Health. DHL will target over GBP 1 billion/Euro 1.4 billion savings over the contract period back to the English National Health Service (NHS). Klaus Zumwinkel, CEO and Chairman of Deutsche Post World Net, said the contract marked the significant success of the Group's strategy: "After the take-over of Exel and given DHL's extensive expertise in the health sector, we were able to make our customer a truly convincing offer. We now reap the benefits of both our internationalization strategy and our broad product range."
DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority.
Under the agreement, DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority, and be responsible for delivering all procurement and logistics services across an initial 500,000 products to support 600 hospitals and other health providers in England। The business will ensure that public health (NHS) authorities can dedicate more resources to patient care and continue to manage their cost base. It will help protect existing jobs and lead to the creation of over 1,000 additional positions.
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