UK: BP Set to Put Fuel Distribution Out to Tender

BP in house  tanker fleet likely to see change  if fuel distribution goes to tender in open market.

 BP's distribution is run in-house, using 450 tanker drivers and a 220-strong fleet. This amounts to about 75% of the total BP fuel distribution business. The remaining 25% is operated by DHL Supply Chain. "As part of a review of our logistics operations, we are inviting third-party logistics providers to tender for the delivery of fuel from terminals to petrol stations and wholesale  customers. We want to ensure we have a flexible and cost effective transport operation in place that allows us to compete in the highly competitive UK market," says a BP spokesman.

The move is seen as a way for BP to test the water to see whether 3PLs can offer a more cost-effective deal without jeopardising efficiency. "We are going to try something different, but if tenders do not seem viable then we won't press ahead," the spokesman adds.  A shift to using third-party operators would bring BP in line with rival Shell which uses Suckling Transport and Hoyer UK for its distribution.

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