eDirect Minimum Order Values
You told us
That eDirect Minimum Order Values (MOVs) can often pose a problem with eDirect orders as you do not receive a notification when the order has not met the threshold. Without receiving a notification part or all your order may be cancelled without you knowing at the point of order.
This information was collected in our eDirect Improvement customer workshop series. See our Useful Links section for more information on this project.
Why do we have eDirect Minimum Order Values?
Some suppliers have a Minimum Order Value in place. NHS Supply Chain agrees to these as they benefit customers with lower total costs by providing efficiencies of scale. For example, with MOV’s in place this reduces delivery costs.
Current MOV process
As you have told us, the problem is that customers are not notified at the point of placing an order if they have met the minimum order threshold. To meet the threshold is to have met or exceeded the suppliers’ minimum order value.
Also, the online ordering account or primary contact point may not be the same person who is placing the order.
The primary contact point is communicated to where customers use a third party ordering system and are not using NHS Supply Chain’s Online Ordering system in parallel. For example, a Procure to Pay or Source to Pay system.
What we are doing
Working with our suppliers
We are continuously working to reduce the minimum order values. Since the start of the eDirect project, suppliers that require a minimum order threshold have reduced by 30%. Additionally, a number of other suppliers have also reduced their threshold values.
For some suppliers, it is not financially viable for them to process very low value orders without an increase in operational cost. This cost would then be passed on to our customers. As such, it is likely that minimum order values will always have a place when ordering.
Technical updates
We have updated our email messaging to include your local reference number. This will make it easier to identify where a cancellation is related to a minimum order value. This communication is available to customers who have enabled our ‘Online Ordering’ system. To gain access to all the benefits that the service provides, such as order updates, speak with your IT team.
Currently, we are developing a flag to appear on our online product catalogue for items subject to a minimum order value. Additionally, we are scoping out future capability for this flag to be available at check out. If you are currently using a third party procurement system that integrates with our own, this will be worth highlighting to your IT team.
We are also exploring whether it is technically feasible to flag which products will be cancelled at check out, if the minimum order threshold is not met.
We will share the progress of these technical updates as soon as we have further information to provide.
Analysis
In addition to the technical updates above, the eDirect project team has been collecting data on order cancellations due to customers not meeting the minimum order threshold.
When we reviewed the cancellation data, we discovered that the majority of cancellations occurred due to extremely small value order attempts, for example under £5. Where possible, we urge you to share processes, training and understanding of minimum order values with those raising orders within the Trust.
Minimum Order Value thresholds
See our Downloads ▼ section for a list of all suppliers who currently state a minimum order value. All orders will need to meet or exceed the stated amount.
