BP Whiting Refinery Case Study Situation In the spring of 2009, the British Petroleum (BP) Whiting Refinery in northwest Indiana underwent major cost saving initiatives to combat their diminishing margins. This was a result of the combination of the recession that began in 2007 and the commencement of the Whiting Refinery Modernization Project (WRMP), an investment of several billion dollars. With an eye towards cost savings, BP was looking for the most economical and efficient solution for staffing the WRMP. Insights Swift will do “whatever it takes, wherever it takes us,” and understands the value of a local office where work can be concentrated close to the project site. Close proximity affords us the ability to provide accessible, personalized, and thorough service. In fact, accessibility proved to be one of Swift’s biggest assets during the Deepwater Horizon Oil Spill, when we quickly mobilized and relocated many internal Swift staff members and contractors to be hands-on and assist BP during the spill. Swift set up a temporary location onsite at a major operator's Command Center in Mobile, Alabama to work hand in hand with managers and provided more than 1,500 contingent labor workers. As an on-site service provider, Swift liaised between all company hiring managers, decision makers, and contractors, which proved to be the key to the success of our part of the operation. Swift also knows the value of a longstanding relationship with our clients, which helps us predict various needs and provide better service. Strategy Swift Worldwide Resources, a global preferred supplier to BP, had a long-standing contract with BP’s upstream business so this work was just a matter of ramping up our knowledge of the downstream marketplace. Our strategy included streamlining processes through a single provider and improving staffing efficiency and quality. Swift has developed this road map for transfers, which is designed to be implemented within one month. The process includes deliverables, team alignment and scheduling, personnel sign up, follow up, and completion and assessment. Execution Swift opened a dedicated office on site and hired local internal staff. After being awarded an exclusive contract to supply both administrative and technical manpower staffing for new requisitions, Swift transitioned all existing contractors from the incumbent agencies. Internal interviews were conducted with each existing contract employee in transition in order to discuss job duties, scope, an overall business review, and a safety orientation. Results Swift was pleased to provide multiple benefits to the BP Whiting Refinery, initially and for years to come. Immediate benefits included a cost savings of approximately $1.8 million, with projected savings of $4 million over the next 3 year duration of the contract. Additionally, there were benefits of increased general liability coverage totaling $10 million and full federal and state tax compliance. There was also zero disruption to BP business with a 100% transfer rate and an incident free transition. Swift was also able to improve safety management and incident reporting, as well as increase supplier general liability coverage by $1 million. A procurement manager from the WRMP project said, “One of the reasons we chose Swift to meet the Whiting Refinery and WRMP’s staffing needs was its commitment to recruit local talent with a physical presence. We also found Swift to be cost-effective and because it is a global company, it could provide people with future opportunities.”
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