What Is Energy Procurement and Why Does It Matter?

Energy procurement is the process of acquiring the exact fuel and power your business needs to operate.

The way you approach energy procurement can have a huge impact on how, when — and if — your business grows.

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Each month you receive your business’ energy bills.

And each month you might find yourself asking:

  • How can I make sense of all these charges and fees?

  • Am I getting the best energy deal out there?

  • How do I keep track of all these invoices?

  • Where is my electricity, gas, propane, and diesel fuel really going?

  • Can I protect my business from large spikes in wholesale energy costs?

  • Is our usage in line with our industry peers?

  • Am I the right person to be reviewing this?

  • Is there a better way?

For too many companies, these questions are asked but rarely answered.

By working with the right partner to develop an effective energy procurement plan you can help answer all these questions — and more. This guide will help you find the right plan and the right vendor for the job.

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Why Is Developing a Strategy for Energy Procurement Important for Your Business?

For cost savings and competitive advantage, today’s businesses can’t afford to ignore their energy procurement.

The average commercial business spends thousands of dollars a month on utilities. For those in the manufacturing, construction, and transportation industries, energy costs are significantly higher — hovering around $6,712.72 a month. Add in variables like multiple facilities, local government regulations, geography and weather — and the average commercial business’ monthly energy bill could easily surpass $20,000.

Such a significant business expense should not be subject to uncertainty or neglect. Yet many companies don’t commit to more effective strategies that give them more control over these energy costs.

Effective energy procurement management puts you back into the driver’s seat. Organizations that embrace strategically maximizing energy procurement stand to lower operating costs and improve operational efficiency. That puts your business at a competitive advantage compared with companies who don’t view energy from a strategic perspective.

You Can Deploy Effective Energy Procurement Strategies for Your Business

This guide is for the innovators, the optimizers, the thinkers and the doers who look for competitive advantages hiding in plain sight. In short, it’s for those who know that the old way sometimes isn’t the best way.

An effective energy procurement strategy can benefit a wide array of business stakeholders, including:

  • The Small Business Owner – making every penny count and securing a brighter future for their business.

  • The Facility Manager – proactively rather than reactively managing essential equipment and facility operations to run like clockwork.

  • The Fleet Manager – searching for cost reductions, reduced vehicle downtimes and highly efficient mobile fleet-fueling solutions.

  • The Purchasing Manager – simplifying fuel requisitions, purchase orders and paperwork behind all production workflows.

  • The Chief Financial Officer (CFO) – hungry for strategic solutions backed by data leading toward synthesized, organization-wide cost savings.

What are the benefits of having an effective energy procurement strategy?

  • Greater Peace-of-Mind: By working with a commercial energy partner who provides expertise, insight and support, you’re never left wondering if you’re making the right choice. With a trusted partner, you can manage your business knowing you’re securing the best deal for your organization and not being charged exorbitant fees.

  • Improved Control: You can find pricing packages and plans tailored to your exact goals, resulting in reduced billing surprises and controlled costs.

  • Increased Organization: Take the headaches out of corporate expense planning with streamlined communications and proactive action plans built around stability and growth.

  • More Insight: Accurate, itemized and detailed usage reports reveal today’s activity and influence tomorrow’s energy decisions.

Businesses with proactive, strategically planned energy supply management enjoy a competitive advantage when compared to those businesses who think energy is just another commodity. Which do you want your business to be?

Chapter 1: The Fundamentals of Commercial Energy Procurement

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