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Strengthening NHS supply chain resilience in an era of uncertainty

Discover key strategies to strengthen NHS supply chain resilience, overcome disruptions, and ensure reliable healthcare delivery with cost-effective procurement.

13/11/2025 · 6 minute read

The NHS is navigating one of the most turbulent periods in its history. Global supply chain disruptions have emerged as a critical challenge, directly impacting patient care and operational efficiency. From geopolitical tensions and climate-related disruptions to rising demand pressures, the NHS supply chain is exposed to vulnerabilities of unprecedented scale and complexity. Addressing these challenges requires urgent attention and strategic action to safeguard the delivery of essential healthcare services.

The current landscape: Challenges facing the NHS supply chain

Recent global events — such as disruptions in key shipping routes like those in the Red Sea — exposed the fragility of international supply chains, causing costly delays and supply shortages that reverberated across healthcare systems worldwide. The NHS, which depends on the prompt delivery of medical supplies, pharmaceuticals, and equipment, felt these disruptions acutely.

Over the past three years, pandemic-induced disruptions and geopolitical conflicts have led to medicine shortages, forcing community pharmacy teams to spend hours daily searching for scarce medicines. More recently, the near insolvency of a major healthcare equipment supplier to the NHS threatened to disrupt critical services for vulnerable patients.

Adding to the challenges faced by healthcare procurement teams are the effects of global tariffs, which have introduced significant cost pressures on international trade flows. Tariffs on medical equipment, pharmaceuticals, and raw materials are likely to increase procurement costs for many healthcare providers worldwide, including the NHS.

These challenges highlight the urgent need to build a more resilient, agile, and secure NHS supply chain.

Key strategies to enhance NHS supply chain resilience and efficiency

With 65% of companies experiencing at least one bottleneck in their supply chain capable of causing catastrophic disruption, enhancing supply chain resilience is essential — not only for cost management but to uphold the NHS’s commitment to exceptional patient care.

Given the NHS’s annual expenditure of approximately £7.9 billion on medical equipment and consumables, and £19 billion on medicines, the following strategies could enhance supply chain efficiency within the NHS.

  • Comprehensive tariff cost mapping: Accurately map tariff-related expenses at every supply chain stage — from raw materials, components, to finished goods — to enable precise budgeting and financial planning
  • Insight-driven negotiations:  Understand tariff effects deeply to negotiate better terms, identify alternative sourcing, and forecast expenditures with greater accuracy, protecting NHS financial sustainability and promoting a steady supply of essential goods.
  • Identify indirect tariff risks beyond Tier 1 suppliers: Extend analysis beyond Tier 1 suppliers to include Tier 2, Tier 3, and further tiers, revealing hidden tariff costs that can significantly impact overall procurement expenses. For example, a US-based supplier sourcing components from Mexico or China may incur tariffs that indirectly affect costs.

  • Expand modal options: Reduce reliance on road and air freight by incorporating rail and sea freight where feasible, reducing vulnerability to single-mode dependency.
  • Build multi-provider relationships: Establish relationships with multiple logistics providers to secure alternative routes and backup options. For example, during shipping disruptions in 2024, NHS trusts with diversified logistics partners were able to reroute shipments more effectively, minimising delays.

  • Mitigate geographic concentration risks: Reduce dependencies on limited suppliers concentrated in specific regions to lower exposure to geopolitical instability and natural disasters.
  • Encourage competitive pricing and quality: A diversified supplier base fosters competition, driving cost efficiencies and quality improvements critical to managing NHS budget pressures.
  • Learn from the pandemic: The COVID-19 crisis exposed the dangers of single-source reliance, particularly for personal protective equipment (PPE) and pharmaceuticals, reinforcing the need for broader sourcing strategies.

  • Assess Tier 1 supplier health: Monitor the financial viability of immediate suppliers to prevent disruptions caused by insolvency or distress.
  • Map entire supply chain financial risks: Many NHS trusts focus primarily on their immediate suppliers, but extending financial health assessments to Tier 2, Tier 3, and beyond can identify hidden vulnerabilities that could cascade into critical supply failures.
  • Leverage advanced analytics: Use AI-powered tools to continuously monitor supplier financial stability, enabling early risk detection and proactive mitigation.
  • Prevent disruptions: This comprehensive approach helps avoid sudden supply interruptions due to bankruptcies or cash flow issues, enhancing patient care.
 

  • Commit to transparency: Full supply chain visibility is essential for operational efficiency and ethical procurement. Modern slavery and unethical labour practices are often hidden risks in global supply chains. Underscoring the need for vigilance, nearly two-thirds of all forced labour cases are linked to global supply chains, with workers exploited across a wide range of sectors and at every stage of the supply chain. 
  • Protect the NHS reputation: Patients and the public expect the NHS to source products responsibly; failure to do so risks reputational damage and loss of trust. As a public sector leader, the NHS must ensure suppliers adhere to strict ethical standards.

  • Adopt AI-powered solutions: Platforms like Marsh McLennan’s Sentrisk™ can map supply chains end-to-end, identifying bottlenecks and risks such as natural hazards or supplier instability. 
  • Drive improvements: Real-time data and predictive analysis can support NHS procurement teams to anticipate disruptions and develop mitigation strategies proactively.

Practical steps for NHS supply chain resilience

To safeguard the future of healthcare delivery, NHS leaders should consider the following actions:

  • Map the entire supply chain to identify critical bottlenecks and vulnerabilities, including financial health assessments of all supplier tiers and tariff-related cost impacts.
  • Diversify suppliers and logistics partners to reduce dependency on single sources or transport modes.
  • Implement real-time monitoring of supply chain risks using digital tools.
  • Develop contingency and business continuity plans tailored to supply chain disruptions.
  • Ensure ethical sourcing by auditing suppliers and enforcing compliance with labour and environmental standards.

Building a resilient NHS supply chain fit for the future

While risks cannot be entirely eliminated, the NHS can strengthen its control by thoroughly understanding and addressing the complexities of its supply chain. By embracing diversification, transparency, financial vigilance, tariff cost mapping, and technology-driven insights, the NHS will be better positioned to withstand future disruptions, protect patient care, and deliver value for taxpayers.

Contact our experts to discuss how we can help your NHS trust build a resilient, future-proof supply chain.

Sarah Triggs

Sarah Triggs

Health and Social Care Leader, Marsh McLennan UK Industries

  • United Kingdom

Placeholder Image

James Crask

Head of Multinational Clients, Marsh Advisory

  • United Kingdom

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