The client had sites in multiple states on different electricity contracts with different providers that had differing contract termination dates. The client knew what they wanted to achieve, however didn't know how best to go about it. their prior experience with electricity brokers had been poor, with high, ongoing costs & low service levels, so they knew they had to do something different.
Spend Solutions was engaged by the client to conduct a tender for electricity that sought to consolidate contracts under 1 retailer with a common end date. With contract expiry dates on some contracts ending within a few weeks, time was of the essence & access to data would be critical.
Spend Solutions was able to engage with internal stakeholders & existing retailers to understand exactly the status on each contract & recommend to the client short term actions that would provide sufficient space to allow the project to proceed.
Once the short term contract issues were resolved, Spend Solutions sought to develop an overarching sourcing strategy that considered the current market & future requirements of the client.
With pricing at multi year lows, it was recommended to immediately engage the market. Providing accurate & clear information allowed retailers to submit pricing with confidence & ultimately lower pricing.
Overall, the clients strategic aims were met, with all sites consolidated under 1 retailer with a common contract expiry date. The market timing was perfect, with savings of 32% per year on the retail rates.