Fourteen energy and petrochemical companies have launched a massive e-procurement alliance which is set to ‘dwarf the competition’. Angela Edwards of BPA said "We are looking at the procurement of a wide spread of products from paper clips to oil rigs. Costs savings could range between five to 30 percent, depending on the type of product and the region of procurement."
$125 bn.
The 14 partners, who include Conoco, Oxxy, Phillips, Statoil, TotalFinaElf and Unocal, collectively spend over $125 billion on procurement each year. BPA CEO John Browne added “The leading players within the industry have come together to improve performance, productivity and capital efficiency.”
float
The alliance will use the use the CommerceOne e-commerce platform and the partners are planning an IPO at a future date.
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