Announced on 6 May, the agreement will see GXO oversee eight distribution centres and a fleet of more than 300 vehicles, providing logistics services including the storage and delivery of medical supplies and equipment to NHS organisations across the country.
The appointment of GXO, the largest pure-play contract logistics provider globally, forms part of a broader strategy by NHS Supply Chain to modernise its logistics network. The contract is expected to begin in 2024–25, although further details of the transition process have not been disclosed.
The move significantly increases GXO’s presence in healthcare logistics, a sector in which the company is also expanding internationally. In the United States, GXO recently signed a multi-year agreement with Siemens Healthineers to extend its Forward Stocking Network, adding two new high-capacity depots. The company has also signed two new agreements with healthcare brands in Europe.
According to GXO, its services for NHS Supply Chain will include inventory management and fulfilment for hospital supplies, medical devices and equipment, with distribution extending to community healthcare providers and home settings. The company says it manages hundreds of thousands of high-value and time-sensitive items across its healthcare operations.
“Our successful expansion in the health sector is the result of a multi-year disciplined commercial and M&A strategy,” said Richard Cawston, GXO’s Chief Revenue Officer. He added that the NHS agreement would serve as a “springboard” for further growth in the UK, U.S., and European healthcare markets.
GXO stated that its healthcare operations are designed to support regulatory compliance, time-critical deliveries and full inventory visibility, with a focus on data accuracy and standardised processes.
