BP to streamline IT supply chain

BP plans to simplify its global supply chain and reduce IT spending by £20m by cutting the more than 540 hardware and software suppliers it works with...

BP plans to simplify its global supply chain and reduce IT spending by £20m by cutting the more than 540 hardware...

and software suppliers it works with in the US and Europe to just two.

The energy giant has signed a five-year $150m contract with Computacenter and CompuCom as global reseller partners to procure software licences, servers, PC commodities and maintenance across Europe and the US respectively.

BP expects to save more than £20m over the life of the deal, which begins on 1 February, by cutting the number of suppliers it uses.

"By consolidating and simplifying our IT supply chain, we will reduce our IT supplier base by at least 540 vendors [and resellers] and significantly remove cost while driving complexity from our operations," said Dana Deasy, BP Global CIO.

BP chose the suppliers after a tender process.

Mike Norris, chief executive at services-led Computacenter, said the deal with BP demonstrates the benefits of large businesses working with partners rather than buying direct from a wide range of equipment suppliers.

The deal "will enable BP to aggregate its spend with vendors leading to volume discounts, standardise its product portfolio and simplify the way IT buying is performed," he said.

BP plans to save $500m over five years by consolidating application development and maintenance suppliers from 40 to five across the group, working with Accenture, IBM, Wipro, TCS and Infosys, Computer Weekly revealed last year.

A version of this story appeared on MicroScope.

Photo: Rex Features



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