The total amount of spending DHL could be handling is understood to be GBP3.7 billion pounds a year, and both parties said the 10-year contract could save the NHS some GBP1 billion in total.
DHL will handle the supply and delivery of everything from medical products, laundry, uniforms and other laboratory equipment. The work will be transferred from NHS Logistics in October.
While the agreement looks set to save the NHS no small amount of money, the UK-German partnership, according to The Daily Telegraph, is likely to spark outrage among some public sector unions which are fearful of creeping privatization.
A plan to outsource the functions has been rumored for weeks, and the Unison union had already warned of industrial action if the move went ahead.