18 May 2006 | Paul Snell

IBM has extended its supply chain relationship with British Energy.

Under the deal IBM will focus on helping British Energy improve supplier relationships and quality. This deal is an extension of a contract signed between the two companies in 2004. IBM said that agreement has saved British Energy millions of pounds, although would not reveal details of the savings.

John Sexton, head of supply chain for British Energy, added: "Our continued relationship will enable us to deliver a safe, value-for-money and efficient service."

Under the deal, British Energy's supply chain will link the nine power stations it operates to its non-generation activities. It will provide almost all goods and services to its power stations, including spare parts and maintenance services, but, they were keen to stress, not nuclear fuel.

IBM told supplymanagement.com it hopes that by standardising parts of the chain, power station efficiency and reliability will increase.

SMmay2006