Working together for a sustainable future 27 February 2013

Who we are… Contract operated by DHL Supply Chain Governed by the Department of Health and NHS Business Services Authority Targeted to deliver £1bn savings back to the NHS 6 Regional and 1 National Distribution Centre Over 620,000 products Delivery to over 1000 trusts, with 120,000 order points 10,500,000 miles travelled by our delivery vehicles 3.8m litres of fuel used per year

Our journey so far… Area2012 v 2008 (Baseline)CO2e (tonnes)In real terms - 21%2,400 1,400 UK homes - 15%2, UK homes - 11%1,600640,000 litres 70% Recycled 1,500 tonnes

Investing for the future Transport New delivery fleet supported by DHL Lightweight, aerodynamic construction Emphasis on fuel efficiency and lower carbon emissions Innovation Operating the first Teardrop vehicle and trailer in Europe for deliveries to the NHS Fuel efficiency improved by over 6% Fuel consumption 3.5% reduction 2012 vs. 2011

Investing for the future Supply Chain network 6 of 7 NHS Supply Chain distribution centres fitted with movement and light-sensitive warehouse lighting since 2010 Capital investment – payback period of less than 3 years through reduced electricity costs New MHE equipment Emphasis on energy efficiency, lower cost and lower carbon emissions Energy Efficiency result 21% less electricity used in 2012 vs Over 4,800,000 kWh saved

Case Study: Consolidating trust deliveries Investigating the unseen cost of purchasing: How many deliveries will I receive? Will there be congestion at the loading bay or site? How much waste will the order create? What carbon emissions will the order create? 2 week study period: 10 scheduled deliveries from NHS Supply Chain 139 deliveries from other suppliers NHS Supply Chain 73% Order volume 43% CO2e emissions Direct Supply 27% Order volume 57% CO2e emissions Royal Liverpool University Hospitals Consolidated deliveries = reduced congestion, carbon & waste

NHS Trust NHS Supply Chain NHS Trust NHS Delivery Footprint – Carbon Impact Consolidation of supplier deliveries via NHS Supply Chain network can reduce the environmental impact of purchasing by: i.Reducing emissions from multiple supplier deliveries ii.Reducing local congestion and air pollution iii.Reducing waste Suppliers

Case Study: Sustainable success through collaboration South West delivery consolidation Reduction of 10,400 vehicle miles over 12 months Equal to 5 tonnes of CO2e Daniels Healthcare Switch to bulk pallet – 9 NPC codes Saved 47 tonnes of packaging per year Removed 18 supplier journeys – 2,800 vehicle miles Equal to 4 tonnes of CO2e Waste Management Backhaul of cardboard and plastic from NHS customers Trial in operation with 3 customers Reduce waste management costs for the NHS

Looking forward: Sustainable Development Strategy NHS Supply Chain Carbon Ethics & Responsibility Community Natural Resources Waste We will reduce carbon emissions from our distribution network by 2.5% every year We will reduce the amount of waste we produce and also help the NHS manage waste cost and burden We will promote Government Buying Standards and work to encourage uptake with the NHS We will work with the Department of Health on supply chain resilience to safeguard critical supplies and plan for future sustainability risks We will support Government targets on SME participation in public contracts

How you can get involved Be demanding of your suppliers Contribute to the Sustainable Development Strategy consultation Work together Think about the implications of your procurement decisions: Pressure on delivery locations Congestion Carbon emissions Waste

Want to know more? Download a copy of our most recent sustainability report at or contact: Colin Stuart Operational Sustainability Manager Stephanie Proctor Ethical & Sustainability Manager