NSW Procurement - CIPS Best in Procurement 2018 Series - 24 Oct
Winners of the CIPS Supply Management Awards 2018 – Best Supplier Relationship Management category for 2018, NSW Procurement, Department of Finance, Services and Innovation is pleased to present their winning project- entitled NSW Procurement and ERM – Joining forces to reduce electricity costs, which will be presented by Giovanni Valentini, Supplier Development Director, Advisory Services.
Judges comments: “A good project demonstrating collaborative working with a win/win and low risk approach for both parties achieving real benefits.”
WINNING PROJECT: With more than 3,000 large meters across its buildings, NSW Government’s electricity spend was sky high, so procurement team (NSWP) and its electricity provider ERM Business Energy collaborated to find ways to reduce costs.
With ERM recently acquiring an advanced energy analytics platform, it was a great opportunity to test the platform while delivering savings. Automatic alerts drastically reduced the time to identify and resolve issues – one faulty air conditioner that may have remained undetected for months was discovered and
remedied, saving $20,000 alone.
In a six-month trial NSWP achieved a 7% reduction in spend across the 20 piloted buildings, while ERM obtained feedback to improve its service and develop a new offering and revenue stream. Some $1.5 million of savings have since been made through rolling out to 200 meters and an additional $3 million is expected by 2019/20.