BAPCO kicks off e-procurement project
Bahrain Petroleum Company (BAPCO) is to roll out e-procurement and tendering systems across its supply chain.
Bahrain Petroleum Company (BAPCO) is set to roll out e-procurement and e-tendering systems across its supply chain, to improve efficiency and reduce costs.
The Bahrain state-owned oil producer has signed up electronic marketplace provider Quadrem for the first phase of its e-procurement project, after a selection process that saw 14 bidders compete for the BAPCO contract.
"BAPCO set the bar very high in their quest to find a suitable e-procurement partner, and we are delighted that we have been able to meet their expectations at all levels of the criteria for selection," said Andrew Stafford, director of business development for Quadrem.
Once the first phase of the implementation is complete, BAPCO will issue tenders and purchase orders through the electronic system to certain selected suppliers; these suppliers will then respond electronically. According to BAPCO and Quadrem, this will produce efficiencies and cost savings for both the oil producer and its suppliers.
BAPCO's long-term plan is to introduce e-procurement across its whole global supply chain. This will allow it to streamline its procurement process significantly, by eliminating the risks of mislaid communications such as faxes, and ensuring larger numbers of suppliers receive requests.
The oil and gas sector has been moving towards e-procurement for some time, but the drive has gained momentum in recent years as a way to cut costs and improve consistency and reliability in the supply chain.
Producers from across the Middle East, including in Oman and Qatar, have adopted e-procurement systems, but many have limited adoption to tendering and are not processing payments and more complex contracts electronically.
Companies such as Quadrem are promoting more advanced payment methods, based on open XML-based standards.