What is Business Energy Procurement?
Business energy procurement is the process of acquiring energy at the best possible rate, on the most favourable terms.
In other words, procurement is about helping businesses choose a supplier that provides the best energy supply at the best price on the market.
What is the purpose of procurement?
The procurement process refers to the identification and implementation of certain steps taken by businesses to tackle energy consumption. These steps ensure that they can acquire energy and energy services that meet their requirements and achieve their objectives. A procurement process is important because it has a direct impact on how much a business can save.
What is a procurement plan?
Procurement planning deals with the process of deciding what to buy, when to buy it, and from what source. During the procurement planning process, expectations for the fulfilment of procurement requirements are determined.
Figure 1. Energy Procurement Plan
The benefits of energy procurement services:
It’s important that all companies realise the benefits of energy procurement for their business.
1. Save money
The first and foremost benefit of an energy procurement service is simply that it saves your business money. This is because energy procurement is intended to secure the best energy contracts for businesses. It will also help you compare offers and services between different energy suppliers. As well as this, the overall energy procurement service provides solutions for the efficient use of your energy. This both protects our environment and saves you money in the long term.
2. Control cost of goods sold (COGS)
Energy procurement services also manage your COGS, often known as operating expenses. Having good management of your COGS will help you better predict and analyse your market threats. In this way, your business can ensure that it continues to maintain its profit. Energy procurement services optimise your COGS by providing you with the bespoke solutions.
3. Manages risk
Energy procurement services will help you to manage risk factors, such as choosing the wrong energy plans for your business. Different businesses have different energy requirements, so not every energy contract you see will necessarily align with your business. Energy procurement services will help you filter these choices by suggesting the contracts that are best for your business, especially new tariffs that fit your energy requirements and budget.
Energy procurement services provide solutions for your business needs. A dedicated team will always provide you with efficient and flexible solutions, and they’ll be able to take advantage of the best offers available on the market.
In summary, business energy procurement simplifies processes for businesses, and ensures they receive the best energy supply at the best price on the market.