Nearly $700 million has been saved through all-of-Government contracts, Economic Development Minister Steven Joyce says.
Government departments and agencies join forces to buy goods and services under the contracts, which are put out to tender.
Mr Joyce says $699m is estimated to have been saved - well ahead of a forecast in June of $415m.
"The increase in forecast savings is due to improved supplier engagement, greater efficiencies and the implementation of more new contracts," he said.
The contracts started operating in mid-2010.