For many companies, energy is their second
or third highest cost of manufacturing only behind labor and the product's feed
stock. The cost of natural gas has doubled in the last five years and electric
is up significantly.
If you are buying natural gas and electricity in
the traditional fashion, you are probably doing it one of two ways. Either a
significant amount of internal time and resources are being devoted to this
effort, or you are simply renewing contracts with the same supplier without much
consideration of other competitive offers. Unfortunately, the reality is that
neither of these methods will get you the best results.
company's energy expense without the proper time or knowledge combined with the
volatile market conditions you open yourself up to the inherent problems and
obstacles in the traditional buying process. First, how access all qualified
suppliers? Do you use a paper-based RFP to get supplier offers or just make a
few phone calls for verbal quotes? Second, how do you fully evaluate multiple
supplier quotes when each price component is defined somewhat differently?
Third, what is the process to review the various non-standardized supplier
contracts? Supplier contracts are typically very different and include industry
jargon and other terminology that makes it tough to accurately compare and
calculate the differences. Finally, are you able to match up the cost
implications of the contracting provisions with price quotes for an
apples-to-apples comparison of the total price for natural gas?
Energy will target the quality energy suppliers either via direct contact,
on-line auctions or both. Our Request for Proposal (RFP) is market specific to
best protect you in all markets. We include operating personnel to understand
their preferences and requirements. Based on our industry experience, we will
sort through each response and recommend the best offer. Outsourcing to Team
Energy works for companies of any size because we allow you to select the
services you need.
Team Energy holds no interest in any energy
suppliers, ensuring that you have completely objective opinion for your energy
management program. Outsourcing is often less expensive over in house