Procurement study shows oil company buyers spend 85% of their time on managing 15% of their spend

Aberdeen-based Craig Group today re-launches its global oilfield procurement division at Offshore Europe to demonstrate the cost-savings it can offer the oil and gas industry in response to the need for greater efficiencies to cope with the N. Sea crude oil price slump.

Craig International, the new name for Craig International Supplies (CIS), has evolved from an oilfield supply company to a provider of out-sourced procurement services.

With bases in Houston, Calgary, Cape Town, Warsaw and Hamburg, Craig International saw its turnover rise from over £48million in 2013 to almost £66 million in 2014.  It is a division of Aberdeen head-quartered global shipping and energy service firm, Craig Group.

Out-sourced procurement management now accounts for almost 90% of Craig International’s revenues and this is anticipated to grow dramatically in the next 12 months

The company’s own research has revealed that typically oil company buyers spend 85% of their time on managing only 15% of their spend.

This modest percentage of overall spend is largely related to oilfield consumables including chemicals, oils and paints, pipe and fittings, tools, electrical and welfare items and services such as travel and accommodation, project management, data management and processing, hospitality, facilities management and general repair and maintenance.

Out-sourcing the procurement of these goods and services results in major cost-savings, reducing expensive overheads and freeing up personnel to focus on the company’s core business.

Jill MacDonald, joint managing director of Craig International, said: “Historically we have been seen as simply a supplier of oilfield consumable products, but we now have a recognised track-record in delivering a much wider procurement service which allows companies to out-source their entire procurement function.

“With the current, pressing need to make savings across the oil and gas supply chain, we felt the time was right to re-brand and demonstrate how we can act as a full trading house for the industry globally.”