NHS Supply Chain has awarded logistics and supply chain company GXO a US$2.5 billion (c. £1.9bn) contract as its new logistics partner.
The contract is for an initial period of seven years, with the possibility to extend for another three years. It will begin when NHS Supply Chain’s contract with its current logistics partner expires in October 2025.
Under this contract, GXO will manage eight NHS distribution centres and a fleet of over 300 vehicles to ‘modernise and optimise medical supply delivery across the UK’.
NHS Supply Chain CEO 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 of 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’ 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.”
The deal marks GXO’s largest-ever healthcare contract win and follows recent global healthcare logistics partnerships with Siemens Healthineers, bioMérieux, Getinge and Fresenius Medical.
On its expansion into this market, GXO Chief Revenue Officer Richard Cawston commented: “Our successful expansion in the health sector is the result of a multi-year disciplined commercial and M&A strategy to diversify into high growth verticals and geographies.
“This landmark agreement with the NHS in England will serve as a springboard to further grow our healthcare footprint in the UK, as well as in the US and Europe as more healthcare organisations and suppliers recognise the benefits of a trusted logistics partner and a tech-enabled supply chain.”
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The Supply Chain Excellence Awards celebrate the hard work, dedication and innovation of those working in the logistics and supply chain sector, recognising excellence in the delivery of efficient, reliable and sustainable logistics.
Click here to learn more about the 2025 awards, and don’t forget to enter before 27 June 2025 – it’s free to enter!
