Economies of scale gained by partnering with other authorities for purchasing.

Worcestershire County Council (WCC), along with three other Councils, is a member of a joint purchasing consortium, West Mercia Supplies.  Office and school supplies, as well as utilities supplies, are secured at advantageous costs and passed on to customers at competitive prices.  A trading surplus is derived from the consortium's trade with its customers.  Having considered the need to retain surplus within the organisation, surplus is distributed to the owning authorities. 

Thanks to Worcestershire County Council for this example.