EP: Between 2004 and 2006 some 150 purchasing pros have gone through an accelerated six-month training program to improve skills and bridge gaps. Why did BP set up this program?
It’s one important part of what we have to do within procurement at BP to deliver business value. You must understand that as recently as 2002, BP had no central procurement processes. Purchasing was considered a basic function done by practically everybody. Growth in BP came mainly through mergers and acquisitions, but as we have grown, so have regulatory issues. That opportunity for growth is no longer open to us. Therefore there is a much stronger focus on improving processes at all levels of operations, and part of that of course involves procurement. There are many aspects of procurement that are being addressed right now, and the training program is one of them.

EP: Why did this initiative start within the Refining & Marketing (R&M) division?
Of the non-hydrocarbon total yearly spend of USD 40 billion at BP, my business segment represents half, or some USD 20 billion of yearly spend. R&M is divided in six different business areas, of which perhaps Retail is the most visible. We have more than 26,000 service stations around the world, more than 20 refineries, petrochemical plants, we manufacture lubricants and much more. So R&M is very diversified – to give you an example, we are the largest sellers of coffee in the US, which is certainly not what most people would think of when you talk about BP! So R&M was a logical place to start, because there were many potential opportunities for improvement. (long article, continued in pdf format)

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