Energy purchasing strategy - what is it and why do you need it?

Energy purchasing strategy - what is it and why do you need it?

As a consultant it is our job to try and place our clients in the most advantageous position possible or their energy purchasing.

In extremely uncertain and volatile times, prices are only going one way. Therefore, as consultants, we need to be looking at other ways to help our clients manage their energy purchasing. This is where having a robust strategy comes in.

Many hospitality businesses know the importance of managing their energy contracts, especially with it equating to 6-8% of overheads! However, with as much ‘shopping around’ as possible, if there is no strategy in place the task becomes fire fighting year after year.

It still amazes me to this day how I see clients whom have previously been working with a consultant and there be no strategy in place, especially if they are a multi-site organisation. Messy management means substantially more administrative burden for the business, along with missing the opportunity to maximise their potential purchasing power.

Strategy can mean many things to many people.  Personally I believe it should include ( but by no means be limited to) maximising purchasing power by streamlining supplies, placing end dates at historically most favorable point in time, implementing trigger points for renewals and regularly completing KVA analysis.

To implement a strategy which will suit the business now and in the future takes time, and understanding of the organisations’ plans or growth.

Here at Prestige we look to work in partnership with our clients, as an added member of their management team rather than an outsourced ‘broker’ you hear from once a year!

If this sounds like something you don’t currently have be sure to get in touch and see how Prestige can help place you in the most advantageous position possible for  your energy purchasing.

03333 554 282