Annual spend: £3.1m
Number of sites: 2
Procurement Product: Flex Bespoke - Green
Group Services: Procurement, CCA, SECR & Cost Recovery
Our client are one of the worlds largest manufacturers of baked goods, with retailers in over 100 countries. The UK product and portfolio mix has seen notable growth in recent years with market trends requiring new and diversified experiences. This growth has seen the expansion of several sites in the last 5 years, including some manufacturing locations across the UK. Our client places a lot of emphasis on their sustainable sourcing for their ingredients and wanted to extend this approach to their energy procurement.
Our client engaged with Optimised Group in 2013 to support navigating the hundreds of energy supply products available to a user of their size in the UK marketplace. The ability to budget years in advance, and with upmost accuracy, was another key driver to engaging with the Optimised bureau financial reporting team. With an energy spend of over £3.1 million per annum, a full market tender spanning 15 suppliers and 40 supply products was recommended. A professional view of supplier service performance was also required, based on a series of negative billing experiences with previous suppliers.
The Trading & Risk Management team profiled historic consumption data across all UK sites to understand key consumption and cost drivers within the portfolio. A strategy scoping workshop was then completed with key stakeholders, to understand the client’s risk appetite and contractual priorities. This workshop also identified a need for a specific type of green energy for the portfolio. A detailed Risk Management Strategy was written and approved by the client, and the output of this was tendered to UK energy suppliers. Following several weeks of supplier negotiations, the results of the tender were presented to the client.
Our client chose to migrate to a traded commodity product for both gas and power, and have saved £216.2k against target to date within their flexible supply contracts. Furthermore, with energy volumes changing dramatically during the COVID-19 lockdowns, the Optimised Trading & Risk Management team secured further savings through effective reforecasting with the suppliers during this period. The focus for our client remains on proactive contract management, with the team also identifying COVID-19 reforecasting errors from suppliers of value 3% and 14% of spend for August and September 2020 respectively. The 2019-2020 Budgets created by Optimised Energy were within 2% of actual spend.
Optimised Energy is a full-service energy consulting business. We deliver energy cost and kilowatt hour savings for our clients through a ‘Managed Energy Services’ approach that combines best-of-breed hardware, software and service. Our solutions are tailored to key market sectors including Commercial Real Estate, Manufacturing, Local & Central Government, Renewable Generators, Hospitality and Retail. Our team of consulting and outsourcing specialists are highly skilled in areas ranging from Energy Procurement to Cost Recovery, Renewables, Invoice Validation, Utility Recharging, Compliance, Sustainability and Energy Efficiency.
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