Amazon closes £600m public sector supply deal

Extracts from an article by Caoimhe Toman, journalist for Web Financial Group

“Amazon has secured a £600m deal with the Yorkshire Purchasing Organization in which it has agreed to supply everything from paper clips to plasters for the public sector in Yorkshire. The deal includes schools, emergency services, local government and social care.

The five-year agreement marks the first time Amazon has signed such a deal in the UK and covers 13 local authorities all of whose operating needs will be provided by the retail giant.

Amazon signed the deal with the Yorkshire Purchasing Organisation (YPO), a procurement body owned by local authorities which makes mass deals with suppliers to help push the cost of goods down for the public sector.

According to The Telegraph, Gus Tugendhat from data company Tussell said: “Having revolutionised consumers’ retail habits, Amazon's next step may be to do the same for public sector purchasing.”

Read the full article on the Web Financial Group website.

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