Case Study: Strategic Sourcing – Printing and Publishing Taking Advantage of Market Opportunity Delivers $3.7 Million in Savings for Printing Company Issuing a request for proposal (RFP) for energy to several suppliers is a relatively simple process. Any company can evaluate the suppliers’ responses and then select the lowest price. However, contracting for energy is about so much more than selecting the lowest price. While energy price is an important factor, knowing which suppliers to include in the energy bid and, most importantly, understanding exactly when to issue the RFP is just as critical. Furthermore, managing the energy spend for an entire portfolio of facilities can deliver even more savings than just managing a few sites alone. Situation A global printing and publishing company had an important energy goal for the year: reduce the power contract costs for its sites across North America. Schneider Electric recently put into place a data collection method that would give the company increased visibility into its site footprint and usage patterns for its $200 Million annual energy spend. With the data in place, Schneider Electric knew what kind of opportunity would present the best options for its client. Now, it was time to wait for the best time to strike. Leadership Schneider Electric’s Northeast, Midwest and Texas market experts identified the perfect market opportunities for 36 of the printing company’s facilities located in those regions. Even though the markets weren’t as volatile as they had been in the past, there were savings opportunities if the company aggregated its energy volumes where possible. Schneider Electric immediately issued an RFP to a community of strong, vetted suppliers and evaluated the responses. Results By evaluating all components of the RFP responses, Schneider Electric chose the suppliers that not only delivered the lowest prices, but also those that provided the best contract terms for its client. The savings realized from the power price negotiation alone totaled $1.9 Million across the 36 sites. However, when the current price was compared to the price the company would have received if it had waited until the contract expiration dates, the total savings jumped to $3.7 Million. This savings represented almost 2% of the printing company’s overall annual power spend. A global printing and publishing company, with more than 120 facilities world-wide, keeps energy costs low by implementing strategic sourcing with Schneider Electric. www.schneider-electric.com

Case Study: Strategic Sourcing – Printing and … · Case Study: Strategic Sourcing – Printing and ... Savings for Printing Company ... y ’ s o v e r a l l a n n u a l p o w

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Page 1: Case Study: Strategic Sourcing – Printing and … · Case Study: Strategic Sourcing – Printing and ... Savings for Printing Company ... y ’ s o v e r a l l a n n u a l p o w

Case Study: Strategic Sourcing – Printing and Publishing

Taking Advantage of Market Opportunity Delivers$3.7 Million in Savings for Printing Company

Issuing a request for proposal (RFP) for energy to several suppliers is a relatively simple process. Anycompany can evaluate the suppliers’ responses and then select the lowest price. However, contracting forenergy is about so much more than selecting the lowest price. While energy price is an important factor,knowing which suppliers to include in the energy bid and, most importantly, understanding exactly when toissue the RFP is just as critical. Furthermore, managing the energy spend for an entire portfolio of facilities candeliver even more savings than just managing a few sites alone.

SituationA global printing and publishing company had an important energy goal forthe year: reduce the power contract costs for its sites across North America.Schneider Electric recently put into place a data collection method that wouldgive the company increased visibility into its site footprint and usage patternsfor its $200 Million annual energy spend. With the data in place, SchneiderElectric knew what kind of opportunity would present the best options for itsclient. Now, it was time to wait for the best time to strike.

LeadershipSchneider Electric’s Northeast, Midwest and Texas market experts identifiedthe perfect market opportunities for 36 of the printing company’s facilitieslocated in those regions. Even though the markets weren’t as volatile as theyhad been in the past, there were savings opportunities if the companyaggregated its energy volumes where possible. Schneider Electricimmediately issued an RFP to a community of strong, vetted suppliers andevaluated the responses.

ResultsBy evaluating all components of the RFP responses, Schneider Electric chosethe suppliers that not only delivered the lowest prices, but also those thatprovided the best contract terms for its client. The savings realized from thepower price negotiation alone totaled $1.9 Million across the 36 sites.However, when the current price was compared to the price the companywould have received if it had waited until the contract expiration dates, thetotal savings jumped to $3.7 Million. This savings represented almost 2% ofthe printing company’s overall annual power spend.

A global printing and publishing

company, with more than 120

facilities world-wide, keeps energy

costs low by implementing strategic

sourcing with Schneider Electric.

www.schneider-electric.com