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March 2011 | Lindsay Clark
Thames Water has outsourced its strategic
procurement to Efficio in a five-year contract to manage £500 million spend a year.
The UK's largest water company will transfer
responsibility for sourcing and contract management of both direct and indirect
spend to the procurement services provider from 6 April, following a nine-month
competitive tendering process.
Ian Bolger, head of supply chain at Thames Water, said
in a statement: “We are committed to working with Efficio over the next five
years to produce real benefits for our business, our staff and our customers.
“Having a first-rate strategic sourcing
consultancy embedded into our core business, combined with our existing staff
expertise and business knowledge and a very ambitious stakeholder is a powerful
combination,” he said.
this year in SM,
Bolger described the move as “insourcing agility, capability and category
expertise” with a new integrated team based at the company’s offices in
Reading, alongside business stakeholders. “This integrated outsource model will
be a compelling option for ambitious businesses,” he said.
Efficio had previously led an 18-month procurement
transformation project with Thames Water to improve efficiencies and generate
savings in both capital and operational expenditure. CEO Jens Pedersen said:
“Having worked with Thames Water in the past we know they understand the
contribution we can make to their continuing success.”
Thames Water outsourced all its procurement and
logistics to Accenture in 1995, before bringing sourcing back in house in 2002.