Situation
An asset management client wanted to implement a national purchasing strategy for electricity because of the perceived benefit of aggregating its entire portfolio.
Solution
We conducted a request for proposal process for the client, and the results indicated that national suppliers were stronger in some areas versus others. Our analysis revealed that a regional approach would allow our client to select the best bid from the strongest suppliers in each region.
By including regional suppliers that have a market niche and better pricing in one region, but who would not have been included in a national purchasing strategy, we were able to maximize the value of the contract for our client.