A Large Manufacturing Company
The sourcing team was totally dependent on an outside broker for all commodity research, analysis and execution of supply contracts. Over the past 12 months the broker had placed them in several long-term contracts. The latest example was a 12-month supply contract that was executed in the first quarter and then another additional 12-month contract that was executed in the third quarter of same year. The actions of the broker lead to our client being several cents above the prevailing electric market for nearly 24 months, leaving millions of dollars on the table.
How the Process Works
Beeson & Associates, Inc. gathered the current contract and pertinent information about the site and its expected usage for the upcoming year. When the data was collected, a formal request for proposal was issued to the major supplier in the region. The supply bids were analyzed and best supplier was selected for the customer.
The client was able to secure power into the future at a significant discount to their current rate and reduce their operating cost for the upcoming term. Not only were we able to secure a discount to the current contract but also purchased their power at the low point of the market.