'Relationship role' turns consultants towards procurement

16 Nov 2010

Source: Financial Times
Management consultancy has traditionally been about building strong relationships in the boardroom, with engagements being awarded based on the quality of solution and its potential benefits. Consultants have not always welcomed involvement of traditional procurement functions and their focus on detailed work specifications and costings.
However, BP is an example of a company that is changing the role of procurement, from a process-driven function to an advisory and relationship-driven role. The company uses 30 mainstream consultancies, as well as a number in niche areas with low spend.

“We are in the top 20 clients globally,” says Paul Alexander, procurement director for professional services. “We believe that we own our problems and their resolution and we buy consultancy services only where it offers BP specialist skills or independent views that it does not, and should not, possess in-house.”
BP believes in having a close relationship with the consultancies it uses and is focusing its time on building relationships with key suppliers that offer the best quality and value for money.

The result is a much speedier tendering process, with BP going straight to consultancies that it knows are strong in a particular area. Given a clear brief, the procurement function can complete a tender in a few weeks.

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