In 1976 the Greater London Council (GLC), Inner London Education Authority (ILEA) and London Boroughs identified the need for a greater degree of co-ordination and joint action in purchasing and supply matters in Greater London.

Recognition of the collective expertise and resources of the London Boroughs, the GLC, and ILEA, and the desirability of increased participation in the development of policy led to the creation of the London Joint Supplies Board which in 1991 was renamed The London Contracts and Supplies Group (LCSG).

Co-ordinated action can achieve considerable advantages in terms of price and costs by:-

•the elimination of unnecessary duplications of administrative effort and stockholding
•the aggregation of demand
•introducing common standards
•prompt payment
•simplified administration

Both the Authorities and the suppliers costs are reduced.