01 November 2007 | Paul Snell
A new deal for postal services in the north west of England is set to save councils £1 million.
A group of 17 local authorities have agreed to switch supplier from the Royal Mail in a deal with TNT Post, following a tender led by the North West Centre of Excellence (NWCE). The deal will see TNT handle post for all Merseyside authorities and half of the councils in Greater Manchester.
The £1 million saving represents 20 per cent on the councils' combined annual spend on post. Research carried out by the NWCE before the tender found authorities in the region send just over one million items of mail a year, with a quarter sent first class.
The cost of the service could be further reduced if 12 other councils in the region sign up to the deal. The councils have until March 2008 to switch.
Terry Harrison, procurement manager at Salford council, said in a statement: "We recognised quickly the benefits of examining our current postal arrangements compared with what a new supplier could offer."