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Learn how CubeCold has optimized its energy purchasing strategy to their business and risk situation.
In the world of energy purchasing, it's all about smart strategies. For companies like CubeCold, the right strategy can make the difference between significant cost savings and unnecessary spending. In order to continue doing business activities, it is essential that they arm themselves in the energy market. How do you find the right balance between buying on the daily market and/or in the long term market?
Cube Cold, a leading service provider in temperature-controlled food logistics, faced challenges in controlling energy costs across their extensive network of cold stores and freezers. With more than 20 branches spread across multiple countries, getting an overview and insight into energy consumption is a complex task.
CubeCold purchased all the energy at the daily market, where a different price applies every hour. That made the company vulnerable to sudden price fluctuations.
An example: during the energy crisis in recent years, they were hit hard. Energy prices fluctuated and rose enormously. For CubeCold, coming up with a solid strategy to protect itself against this proved difficult.
CubeCold also knew that flexible use of energy on the grid was possible with their machines, but they lacked an overview and insight to make optimal use of this.
CubeCold wanted to develop an energy purchasing strategy that protected against market volatility while reducing its operating costs. The goal was to find an optimal balance between price security and flexibility in their energy consumption. And that on the basis of the right risk profile that suits CubeCold.
“Thanks to QING's new energy purchasing strategy, we can now proactively respond to market fluctuations and better control our costs.” Frans van Helden - CFO at CubeCold
To arrive at the right energy purchasing strategy, CubeCold first gained insight into the consequences of the current strategy. It also identified what is more important: always the lowest energy price with all risks, or the certainty of a fixed price? It is important that this fits with the new energy purchasing strategy.
The flexibility company-specific processes were then mapped out. For example, QING's energy consultants looked at what happened if, at certain times, less energy was consumed in a freezer due to a temperature adjustment. Thanks to simulations, this could be calculated risk-free without directly modifying the business process.
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Thanks to QING's historical and bulk data analyses, CubeCold got understanding in its position on the spectrum of daily prices versus long-term purchases. This provided insight into all the pros and cons per scenario.
Thanks to the best and worst case scenarios, CubeCold now knows what risks these scenarios pose to business operations. Now and in the future. Based on this the company was able to define an accurate risk profile to arrive at a new energy purchasing strategy.
CubeCold chose to be less dependent on the daily market. This means that 50% of the energy is purchased via the daily market and 50% in the long term market.. The focus is on avoiding peaks in energy prices and maximizing savings.
With the implementation of this new energy purchasing strategy, CubeCold can make significant savings and better manage its risks. Thanks to implementing a Energy Management System CubeCold ensured that the savings obtained from the simulations are actually realized.
CubeCold now knows how to act in times of crisis and favorable market conditions. The company knows what options are available and what is the right thing to do in each situation. This allows them to act early on the rapidly changing energy market.
Wondering if your current energy purchasing strategy is right for your business processes and risks? Contact us today and discover the possibilities.
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