Postal Services

London Postal Services Group 2011

Background

In 2006, the National Audit Office published a report about improving postal services procurement in the light of market deregulation, along with a case study and best practice guide. This has formed the basis of subsequent coordinated working in London and other regions. Postal services are not a small expenditure item for many single tier local authorities where total spend is about £200M. In London, spend on postal services averages over £300k per local authority.

London Position - 2009

In 2009, sixteen London local authorities collaborated, using the, then, Buying Solutions contract, to test the market. The outcomes were positive with potential cashable savings of £923k between the authorities being identified. Some authorities took advantage of this situation, but a majority delayed changing suppliers pending the need to improve current practices locally and also trial the new provider(s). Also, the Buying Solutions contract was due to expire within months and many boroughs thought that it would be advantageous to wait until the new contract was let which it was in August 2010.

Meanwhile pilot work was undertaken at Camden and Merton to work through the operational issues, which were subsequently written up into case studies.



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