Thames Water has signed a five-year contract with procurement specialists Efficio, who from April 6 will manage up to £500m a year of its direct and indirect spend on everything from pipes and heavy machinery to office supplies.

Ian Bolger, Thames Water's head of supply chain, said:

"We are committed to working with Efficio over the next five years to produce real benefits for our business, our staff and our customers."

Efficio is a niche, international management consultancy focused entirely on procurement and supply chain optimisation. The Group works with large corporate clients and private equity-owned businesses across Europe and the USA.

Commenting on the deal, Jens Pedersen, Efficio's Chief executive, added:

"Having worked with Thames Water in the past we know they understand the contribution we can make to their continuing success."