NHS Supply Chain has awarded a seven-year contract to GXO to manage its logistics services for storing and delivering healthcare products.

The contract worth $2.5 billion will come into effect this October alongside a possible option of adding an extra three more years, extending the deal to a total of 10 years.

As part of this contract GXO said it will manage eight NHS Supply Chain distribution centres and a fleet of more than 300 NHS Supply Chain vehicles.

The logistics provider will also be contracting with Polar Speed, part of UPS Healthcare, to offer a full range of UK coordinated services such as home delivery.

NHS Supply Chain chief executive officer, Andrew New said: "We’re pleased to announce GXO as the new service provider for our logistics services.

“Running our eight distribution centres across England and keeping our significant fleet of more than 300 delivery vehicles on the road is a key part of what we do to supply the NHS with more than 35 million healthcare products every year.

“We’re an important part of the healthcare system, ensuring the NHS can put patients first.

“As well as running our normal logistics services, looking forward to the future, we will be developing our logistics services with GXO to best meet the growing needs of the NHS.”

Gavin Williams, managing director, GXO UK & Ireland added: “We are extremely proud to have been selected to serve the NHS, through NHS Supply Chain as its new logistics partner."  

“Combining our sector experience with the technology expertise that supports many of the UK’s leading businesses will optimise the NHS’s logistics services for healthcare providers and taxpayers.

“We are committed to an excellent quality of service to hospitals and patients at home, increasing productivity and supporting our NHS so that it can focus on patients, its ultimate priority.”