80:20 Procurement Services Clinches BP Contract Extension
Supply chain specialists 80:20 Procurement Services has been awarded a contract potentially worth up to £10 million by BP Exploration Operating Company.
The Aberdeen-based company has clinched a two-year extension to its existing contract with a further two one-year options for the supply of
low-value consumables and one-off purchases.
80:20, which specializes in the supply chain management of low-cost consumables, recorded record turnover of £3.8m for its year-end in March -- more than double the previous year's figure of £1.8m. Turnover is expected to exceed £5million for its next financial year.
To further strengthen its service offering to the marketplace 80:20 has developed an innovative web application that will improve the order process and ensure 80:20 can continue to manage contracts in an effective manner.
Jill Gordon, Material Process Control Manager of BP Exploration Operating Company Ltd said, "When we looked at outsourcing low-value consumables as a commodity last year we were looking for a company to offer something different.
"80:20 captured what we were looking to achieve and has continued to develop its service offering to meet our needs. We've noticed significant low-cost procurement savings since we began our partnership with 80:20 Procurement Services."
Craig Lindsay, Procurement Co-ordinator of BP Exploration Operating Company Ltd, said, "The launch of the procurement web system is another exciting step forward and shows that 80:20 continue to understand our requirements and offer innovative solutions to meet our needs.
"Our partners are critical to our success and we're looking forward to continuing to develop and enhance our relationship with 80:20."
80:20 director Paul Dorward said, "The BP contract is the latest stage in a very exciting period for 80:20 Procurement Services and we are absolutely delighted to be working together. The web system is just the next stage in transforming how companies manage contracts of this nature.
"We will continue to reduce costs on their behalf while striving to enhance the level of our service.
"We've spent more than £70,000 on IT in the last year and that's a lot for a small company. However, developments such as our new web application show our commitment to investing in the business, and improving our service offering to our clients."
80:20 director Tony Bannon said, "The BP contract extension gives us an opportunity to further develop the business. There is a bright future for 80:20's supply chain management services."
The company is also predicting strong growth for its procurement consultancy business as potential clients seek solutions for reducing their supply chain costs through bespoke procurement strategies.
80:20 Procurement Services is based at the city's East Tullos Industrial Estate and employs 14 staff.
The company is named after a world-renowned economics principle first developed by 19th Century academic Vilfredo Pareto, who noted that 80% of Italy was owned by 20% of the population. 80:20 have brought this into the world of procurement by offering a service that manages all low-value spends which is effectively the bottom 20% of a client's spend but 80% of a client's suppliers, this is known as 'The Tail of the Supply Chain,' an area which is often ignored but can, when managed correctly, yield significant savings.
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