Scotland eyes £1.85m savings in courier deal

13 October 2010

13 October 2010 | Lindsay Clark

Procurement Scotland, the buying agency for the Scottish government, expects to save £1.85 million a year on a courier contract for the public sector.

The targeted savings figures have just been revealed for the framework agreement with DHL Express and Eagle Couriers, which was finalised in May.

The deal is open to all Scottish public sector organisations, Procurement Scotland said, and will enable more efficient and effective use of these services.

“Courier services is one of a range of Scottish procurement contracts established under the Scottish Public Procurement Reform Programme, which delivered £327 million savings in its first two years to 2007/08, in addition to more than £200 million in procurement-related efficiencies,” Procurement Scotland said in a statement.

The suppliers were appointed following a review of all courier contracts to centralised services. The deal amalgamates courier services including same day, overnight and international deliveries for central government, local government, universities and colleges, the police and fire services, and the NHS at pre-agreed rates. It is also open to charities.

Prior to winning the contract, DHL held several Scottish government courier deals. Manish Joshi, managing director, same day, for DHL Express UK, said: “This is a very important time for the Scottish public sector to be reviewing its partners to ensure its getting the most cost effective and efficient service.”

Earlier this week, Sir Philip Green, owner of the Acadia Group, said in a report to the UK government that one of the problems with public procurement was suppliers often have multiple contracts with several public sector bodies, each under different terms.

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