An Aberdeen-based oil and lubricant firm yesterday said its ability to deliver savings had helped it strike two new deals, one of which is worth nearly £800,000.
Normac Oils will supply its products to oilfield services firm Archer and collective members of the North East Procurement Organisation (NEPO) under separate agreements.
Normac declined to say which particular client had stumped up the £800,000.
NEPO manages procurement on behalf of 12 local authorities in the north-east of England and a range of associate members in areas including, construction and energy.
Normac will to supply NEPO members with vehicle lubricants over a four year period.
Commenting on the Archer contract, Normac said its pledge to keep prices fixed until the end of the year had helped it snare the business.
Cutting costs has been imperative for energy sector firms due to persistent, low oil prices.
Andy Ramsay, general manager at Normac Oils, said: “Being able to supply Archer is a major feather in our cap. The support of the maintenance engineering and supply chain team to embrace change has been admirable.
“Archer has demonstrated that their willingness to seek quality alternatives can produce significant cost savings.
“This agreement is testament that it is entirely possible for an SME and a global company to work together for mutual benefit.”
Paul Henderson, Archer’s UK supply chain manager, said: “We like to have a partnership approach with our key suppliers as I strongly believe this benefits both parties.
“Suppliers also need to have vision, and Normac Oils is clearly looking to continually expand and develop its systems and processes and that positively impacts on us.”