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Strategic Sourcing and Procurement Services


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Success Story - "Utility Cost Reduction"

Company Description

$100 Million Midwest Factory

Company Situation and Problem

High-cost product; declining sales; marginal profitability; old and poorly maintained production facility; high electrical and natural gas usage; high natural gas prices; Purchasing organization not involved in energy purchases; not taking advantage of special savings available; gas supplier margin and delivery rates appeared high; processing equipment and motors severely aged; variable speed drives not installed; lighting was old and inefficient

Paladin Actions & Recommendations

Utilized a Solution Partner to complete energy usage audits to identify energy usage reduction opportunities; determine electrical load that could be interrupted; reengineer production line power and lighting equipment.

Utilized a Solution Partner that provided an e-commerce approach to obtain competitive natural gas pricing; negotiated final contract terms; assisted in implementation of new supplier and related processes.

Client Results

  • Energy usage reduction savings of approximately 11%
  • Investment payback of less than 2 years
  • Natural gas delivery costs reduced 70%

Analyzed Situation … Recognized Opportunities … Engaged Solution Partners … Delivered Significant Cost Savings