Energy giant builds new supply chain strategy

British Energy, the UK's largest electricity generator, has signed a multimillion pound deal to implement a new supply chain strategy.

The "multi-year" agreement will see IBM work with British Energy staff and suppliers to design and deliver a series of initiatives aimed at increasing power station output and reliability, and deliver "significant financial benefits".

The deal will enable British Energy to improve supply chain performance for its nine power stations across the UK, IBM said.

British Energy owns and runs eight nuclear power stations in the UK with a combined capacity of almost 10,000 megawatts. It also has a coal-fired power station that can generate almost 2,000 megawatts.

The programme will include the introduction of "innovative" contracts, improved supplier quality and safety performance, and business process improvement.

The deal builds on IBM's current contract with British Energy, signed in May 2004.

John Sexton, head of supply chain for British Energy, said in a statement: "British Energy has already achieved a great deal under the agreement with IBM and our continued relationship will help us, and our strategic partners, to provide a best-in-class supply chain service to all business customers, enabling us to deliver a safe, value for money and efficient service, and ensure continuity of supply now and in the future."