Energy procurement is more than just finding the best price; an energy procurement strategy should also generate value and support the company's strategy and risk management requirements.
Fremont, CA: It's tempting to believe that energy procurement is just about finding the best deal, but it's also about making sure the product fits the company. It means that the plan should add value while also supporting the company's overall strategy and risk management objectives. During the planning stage, the business should acquire and analyze data on tariffs, contracts, and other risk-management factors. This information will help organizations develop a strategy and give them guidelines for working with the energy suppliers you choose.
Steps leading to a great energy procurement strategy:
Analyzing the current situation
Before launching into developing a procurement strategy, a corporation must determine what goals it wants to achieve. To achieve these goals, it must first understand the business's risks and market position. It will have to consider a variety of aspects, including market volatility and stakeholder management.
Prioritize what matters more
After a company has assessed its situation, the next step is to document the relationship between procurement strategy and corporate goals. Although this will vary by industry, gathering information on the company's corporate goals before mapping procurement objectives to each one is a good idea.
Build trust among suppliers
The relationship a company has with its suppliers has a huge role to play in the energy procurement process. Because the way it deals with suppliers has a significant impact on operational and cost efficiencies, it is critical to establish trust and credibility with any suppliers with whom it works.
