16 July 2009 | Rebecca Ellinor
A BP procurement team has directly achieved $20 million (£12 million) savings in the past two years and contributed to at least $690 million (£414 million) more in 2008
The eight-strong team, in refining and marketing (R&M), made savings through improved market intelligence (MI).
Its work included setting up an MI portal for market data and research, live news feeds relating to strategic suppliers and specific industries as well as other MI tools and resources. BP staff worldwide can access this portal.
The team also established an inflation model to forecast price changes, particularly for volatile commodities, and analysed supply markets. The information on trends and potential price fluctuations provided to buyers and internal customers has boosted negotiating power.
Greg Dyer, R&M market intelligence manager, based in the US, told SM: "We have a better outlook on what's happening and what's going to occur than our competitors. That will drive our ability to buy more effectively."
The success of the work has led to the introduction of MI teams in BP's exploration and production division, and indirect procurement.