The imaginatively named GP General Procurement Company Ltd (GenPro) will give the two shipmanagers a pool of 800 vessels with which to negotiate with suppliers to achieve the best prices for their principals. The two companies said GenPro would negotiate framework agreement with international ship suppliers “with a view to securing the lowest prices achievable on all consumables”.
The aim will be to reduce clients operating costs in a transparent and auditable way. The venture will also procure other products related to the operation of a maritome business both on and offshore.
GenPro will work on the basis of a brokerage fee from suppliers with discounts negotiated from bulk purchases returned to its members clients in full.
Ian Beveridge ceo of BSM said: “We believe GenPro will change the way global procurement is delivered to shipowners on an international scale and will in time become a compelling new force in the industry. Both companies are leveraging their industry links and relationships to owners and we believe this is something owners will welcome.”
Mark O’Neil, ceo and president of CSM said: “GenPro represents optimisation of the procurement process in its purest form – a veritable ‘win-win’ for owners and suppliers alike.”