ChevronTexaco puts £14m annual saving on the menu

31 January 2002
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31 January 2002 | Robin Parker

Recently merged energy giant ChevronTexaco aims to cut its annual catering procurement spend by £14 million ($20 million) under a global contract.

The US-based company has signed a 10-year preferred supplier agreement with catering group Compass, which will provide services for its international operations.

Under the terms of the contract, believed to be the biggest in the catering industry, Compass subsidiary Eurest Support Services must promote local sourcing wherever possible and raise the quality and reliability of service.

By streamlining its catering services through one supplier, ChevronTexaco aims to make procurement savings of more than £145 million ($200 million) over the length of the contract.

A spokesman for the energy company said: "This is a conservative savings estimate resulting from the use of Compass's preferred supplier rates, compared with what we now spend for the same services using a variety of vendors worldwide."

Most of ChevronTexaco's US, Latin American, European, Asian, African, Middle Eastern, Eurasian and Australasian operations, where Compass will be encouraged to partner with local suppliers, will come under the scope of the agreement within two years.

One of Compass's first challenges will be to co-ordinate local vendors and sub-contractors in Kazakhstan over the next two months.

Compass will supply more than 10,000 meals a day, alongside various facilities management services, to four outlets at ChevronTexaco in Tengiz Field.

SMjan2002

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