The GPO supports procurement strategies and delivers products to the divisions at reduced prices through the following guiding principles: • the GPO has dedicated resources with the right expertise to source new products and uncover cost reduction opportunities; • the “arm’s length” principle is followed where the divisions procure from the GPO only when better value is offered than available through the existing supply chain; • improved governance to ensure the cost-reduction strategies do not create risks to the business or patients; • due diligence investigations of manufacturers to ensure product quality and safety; and • suppliers are responding positively to the competition that the GPO has created in the supply chain by ensuring they deliver best value to maintain their business with the Group.