Amazon has struck its first major British public sector contract in a £600 million procurement deal with Yorkshire.
The e-commerce company signed a five-year deal with Yorkshire Purchasing Organisation (YPO), which is owned by the local authorities and makes deals with suppliers, buying in bulk to reduce the cost of goods.
Local government, emergency services, social care services and schools in Yorkshire all use YPO to purchase office supplies, medical equipment and more.
The deal with Amazon is set to streamline the procurement process, with the retail behemoth becoming the only supplier. The £600 million figure is the projected value of sales that could be made through the dedicated Amazon site during the contract period. Amazon already has similar deals in place in the US, through the procurement body US Communities.
YPO described Amazon as “the only viable contractor currently operating in the market”. However, the deal has been criticised for taking business away from local suppliers.
(Source: The Telegraph)