Efficio wins five-year procurement deal at Thames Water

22 March 2011
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22 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.

Earlier 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.

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