The NHS Business Services Authority has signed a two year extension to its NHS Supply Chain service contract with DHL. 

As part of the agreement, revised terms will apply from October 1st and remain in effect for three years to September 30th 2018.

These terms include a new reward structure, incentivising DHL to deliver more value to NHS customers, as well as cost savings to the taxpayer. 

Director of change and commercial delivery at the NHS Business Services Authority Steven Pink said the deal represents a step change in terms of service delivery to the NHS. 

"We're really looking forward to working closely with NHS customers, suppliers and DHL to secure the £300 million savings target," he commented. 

Chief executive of the NHS Supply Chain Nick Gerrard added that he has worked hard to ensure the agreement delivers "more cash releasing savings" and "greater transparency of our contract".