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Leading ship managers for joint procurement business

(Posted on 08/06/18)

Bernhard Schulte Shipmanagement and Columbia Shipmanagement have combined their global buying power to create an independent procurement company to deliver greater value in ship supply costs for shipowners. The move guarantees principals lower costs in the procurement of a wide range of consumables while guaranteeing product quality and service.

GP General Procurement Company Limited (GenPro) will negotiate framework supply agreements with international ship suppliers on behalf of its members’ clients with a view to securing the lowest prices achievable on all consumables. This new agreement gives BSM and Columbia’s pool of more than 800 vessel owners access to a wider, superior range of consumables at the best prices available globally.

It will capitalise on the best practices and strengths of its members by driving efficiencies into the whole procurement process to help reduce clients’ vessel OpEx costs and return real value to the client by way of volume-related discounts in a fully transparent and auditable way.

Ian Beveridge, CEO of Bernhard Schulte Shipmanagement said today: “We are pleased to be working with Columbia Shipmanagement to set up GenPro, a new company designed to deliver maximum value to our shipowner clients in a new and innovative way.

“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 Columbia Shipmanagement stated: “GenPro represents optimisation of the procurement process in its purest form – a veritable ‘win-win’ for owners and suppliers alike.”

The scope and reach of the procurement effort will not be limited to maritime products and consumables but will include all products and consumables associated with the operation of the maritime business, onshore and offshore.

GenPro will derive its income from a brokerage fee agreed with, and paid to it, by the ship supplier. It will also negotiate and agree volume-related discounts with the suppliers which shall be returned to GenPro members’ clients in full.

GenPro has pledged to build the most relevant, competitive, comprehensive quality repository of supply contracts within the maritime industry while ensuring honest and transparent dealing at all times, and fair competition amongst its suppliers and service partners. A commitment to strengthening and sustaining partnerships for mutual benefit is at the core of its operation, as is the concept of engendering and upholding a relationship of complete trust between all partners.

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