Table 6.
Cross case comparison of NHS England and RHS Tuscany cases – Results.
NHS England | RHS Tuscany cases | Comparison (commonalities and differences) | Explanation for difference | |
---|---|---|---|---|
Impact of outsourcing on procurement | Cost savings; Increased sales volume; rationalisation of product range was the reason for outsource | Cost savings; Increased volume and actions; reduction in administrative costs (staff) | Similar types and levels of impact | |
Impact of outsourcing on logistics | Reductions in inventory cover and Cost-to-serve; Delivery service improved | Reductions in inventory, warehouse management costs and administrative costs (staff) | ||
Market model | Free market modelling resulting in competition, disaggregation of supply and reduced NHS SC market power | Mandated market model leading to standardisation and reduced flexibility of supply | Both market model present opportunities and challenges. | Fundamentally different models. Free market model leads to competition and more choice. Mandated model leads to standardisation but reduced flexibility |
Supplier and customer relationships | NHS client organisations need guidance to improve the understanding of the NHS SC value proposition. Lack of transparency increases the information asymmetry | The three ESTAVs struggle in developing effective supplier management system: narrow supply base and potential for conflict with public policy goals | High competition in the NHS reduces opportunity for volume aggregation and reduce prices. In Tuscany, the ESTAVs have a limited control over the supply base and are influenced by policy goals in developing supply management portfolio | In both cases a problem of information asymmetry affects the effectiveness of the process and impacts negatively on the bargaining power of the service provider. In both cases, more transparency and guidance are needed |