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Office Supplies Framework Lot 1 – Non renewal of Lyreco Contract

Published

Lyreco terminated 136 CPC members from the NWUPC / CPC framework contract In January 2017 without the consent of CPC, moving them to a new “Lyreco sustainable pricing model”. In essence, these were members who procured the majority of their stationery from the Lyreco Core List.

Following discussions with its membership and a detailed market analysis, NWUPC has taken the decision not to extend Lot 1 of the Office Supplies Framework into its final period ending 31st December 2017. Therefore, the existing Agreement with Lyreco UK Ltd ends 30th June 2017.

As a consequence of the action taken by Lyreco in January 2017, CPC researched and evaluated the market to deliver an alternative framework provider for our affected members.

Following this evaluation, CPC selected Crown Commercial Services as the framework provider that we believed most closely met CPC business requirements, including offering a breadth of suppliers that we could appraise for members via further competition.

We issued our further competition documentation to all 6 organisations on the Crown Commercial Services framework during January once we had received more than 50% of the affected 136 Colleges and Academies positive responses to proceed to market.

We weighted the competition at 55% price and 45% quality, assessing over 500 lines and 40 qualitative service elements.

The Contracting Team, following a stringent evaluation, awarded the contract to Banner. Working with them, we have already implemented and actioned a full mobilisation plan for the majority of the initial 136 members. CPC are now partnering with Banner to prioritise all remaining CPC members procuring stationery via Lyreco, to be able to contract with Banner, ensuring that they continue to enjoy the full support of CPC and indeed Crown Commercial Services moving forward.

CPC fully recognise the cost of change in consideration of new systems and processes, however we are confident that members will be delighted with both the service proposition and pricing on offer from Banner, which, when compared to a basket of items from Lyreco (2016 pricing) containing almost 200 lines on a like for like basis shows direct savings of in excess of 20%. It should be noted that Lyreco have subsequently applied price increases in the region of 9% for all remaining CPC customers.

Here are just a few of the comments received so far from CPC members that have already moved from Lyreco to Banner during the first phase.

“In general the prices are extremely competitive, even when we have compared them to our Lyreco pricing before their increase.”

“Just to let you know we have found the transition of our stationery orders to your company very easy. Yourself and the team from Banner have gone out of their way to make it an easy process for us especially as we like to have things done in a slightly different way! You have easily facilitated all our requests regarding deliveries and Invoicing. We are very pleased with the next day deliveries and look forward to receiving consolidated invoices this month.”

“The transfer to the Banner stationery contract went really well. The communication from the account manager for Banner was very helpful. He arranged everything that we asked to proceed with on-line ordering and before that could be put in place he took the orders over the phone and processed them for the next day delivery. Here are a few examples of the savings compared to Lyreco :

  • A4 Laminating pouches – Banner £1.95 Lyreco £3.99.
  • Calculator Banner £2.80 Lyreco £4.38.
  • Extra wide dividers Banner 0.07p Lyreco 25p.
  • Rulers Banner 4p Lyreco 9p.
  • Flipchart pads banner 2.25 (pk5) Lyreco £6.20 (pk 5).
  • Glue sticks Banner 16p Lyreco 79p.”
A college based in the North West recently switched from Lyreco to Banner and when benchmarked against their existing basket buying one of each item, Banner were found to be in excess of 55% lower on price than Lyreco

For clarity, Lyreco are still a supplier to the CPC on the following agreements:

  • Office Supplies Framework Lot 2 Electronic Office Consumables.
  • Estates & Facilities Supplies Lots 1,2,3,4 & 5.
  • PPE & Clothing Lot 8.

CPC has been very proactive in the marketplace to ensure that our members have access to a fully EU compliant contract that delivers excellent value together with a strong service proposition and whilst we recognise that for some members, this decision will be somewhat of a shock, the actions of Lyreco contributed to the decision taken by NWUPC and CPC to not invoke the extension to December 31st 2017.

If you have any further queries in consideration of this communication or wish to discuss the implementation of your institution mobilisation plan to transfer to Banner, please do not hesitate to contact the CPC helpdesk on 0800 066 2188 or e: [email protected] or;
Banner directly on: 0843 538 3311 Ext. 4204
Jen Jones - External Implementation Executive [email protected]

Peter Brewer

Managing Director

Frequently Asked Questions

  1. Section One – CPC Further Competition
  2. Section Two – Lyreco Transfer
  3. Section Three – Banner Transfer
  4. Section Four – CPC Contract Management

Section One – CPC Further Competition

Q: Why did CPC select the Crown Commercial Services Framework?
A: CPC has a strong working relationship with CCS and given our customer base, the CCS framework best meets the diverse requirements of all our members. In fact, this is the first joint educational / CCS framework collaboration.

Q: Did CPC just choose a framework where they could generate the most income?
A: Not at all. CPC is a member driven organisation and meeting those needs comes first. In fact, the commercial income from this contract will be significantly reduced in the short term. We always put our members first to get the best possible result for them.

Q: Did you invite all the suppliers on the CCS framework to participate in the further competition process?
A: Yes, all 6 suppliers were invited.

Q: What exactly did CPC assess during the further competition?
A: From a pricing perspective, we utilised a core range of circa 500 items which was cross referenced to a large FE College basket to ensure fitness for purpose.
From a service perspective, we assessed almost 40 qualitative areas which were discussed with members prior to inclusion within the competition document. .

Q: How long is the contract term?
A: The initial contract term is 12 months with CPC able to invoke CCS extension periods should we wish to do so.

Q: How long is pricing held for?
A: Initial pricing will be held to March 2018 with any increases requiring 3 months notice in writing for consideration.

Q: What terms and conditions apply to this agreement?
A: The Terms and Conditions of the CCS Framework RM3703 shall apply to this agreement. These can be located within the user guide on the CPC website.

Q: How strong is the Banner pricing under this agreement?
A: The commercial model is extremely competitive. CPC have benchmarked against Lyreco 2016 pricing on over 200 lines with the Banner pricing being in excess of 20% lower. Obviously, every basket of goods is different, but we believe that this further competition has resulted in the most competitive pricing available anywhere in the education sector.

Section Two – Lyreco Transfer

Q: Why did NWUPC not extend the contract to December 2017?
A: NWUPC have made a commercial decision not to further extend this contract beyond June 30th 2017.

Q: So why have CPC also not extended the contract with Lyreco?
A: CPC were a named party to the contract set up by NWUPC. As the contracting Authority, any decision taken by NWUPC is mirrored by CPC as a party to the contract. In addition, the treatment by Lyreco of our members in January 2017 was very much a contributory factor for CPC.

Q: Will CPC be supporting any members that remain with Lyreco on this agreement?
A: This agreement only runs to June 30th 2017; therefore, CPC will not support or be able to provide advice or support in consideration of any future issues experienced by members when dealing with Lyreco after this date.

Q: Will CPC be supporting Lyreco under any other CPC framework contracts?
A: Yes, as listed below
Office Supplies Framework Lot 2 Electronic Office Consumables
Estates & Facilities Supplies Lots 1,2,3,4 & 5
PPE & Clothing Lot 8

Q: Is there a timescale by which we will need to transfer to Banner?
A: If your aggregate spend exceeds EU thresholds, then an immediate transfer by July 1 2017 is recommended. If not, you should transfer ASAP to ensure ongoing support from CPC in managing the supplier.

Q: Can I remain with Lyreco as I have no problem with their service or their price?
A: That is entirely your decision to make but please note that there is no EU regulatory cover afforded to you should you do so.

Q: I work in a school / academy /MAT does this apply to our institution?
A: Yes, the removal of Lot 1 applies to all CPC members and none will be supported by us should they choose to remain with Lyreco. We will of course support all members utilising the new Banner contract.

Section Three – Banner Transfer

Q: How do I get in touch with Banner?
A: Contact Banner on 0843 538 3311 Ext 4204 or email Jen Jones - External Implementation Executive [email protected]

Q: How does the Banner system work?
A: See the User Guide for advice

Q: Where do I get a copy of the Banner Core Price List?
A: See document here

Section Four – CPC Contract Management

Q: How often are CPC meeting with Banner to discuss contract performance?
A: CPC are presently and for the foreseeable future holding a weekly teleconference to discuss the mobilisation plan and all issues thereto. Going forward, formal meetings will be held quarterly to assess performance

Q: What will CPC do to ensure that the Core List is developed and grown?
A: At the quarterly review meetings, Banner will produce full management information by product from a volume and value perspective. The CPC team will then identify with Banner any items that are to be added to the core list at an immediately reduced price utilising a similar margin to those products already on the core list is applied.

Q: If we have any issues with Banner, how do we report it?
A: Please contact the CPC Contract Manager Majid Khan on 0161 9740 0949 e: [email protected] If not available, contact the CPC Helpdesk on 0800 066 2188 or e:[email protected]

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