However You Slice It, Buying Energy is Unique

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Purchasing professionals face some universal issues, whether they are buying cardboard, beef or industrial exhaust systems. Everyone wants the lowest possible cost. No one wants surprises in the contract. And everyone knows that more bidders typically bring more competitive pricing.

The goals of energy procurement are no different. However, the path to success leads through drastically different territory. Prices change fast and frequently, varying by geographic region and even time of day. Cost is important, but so is predictability. There is not always a price advantage for large purchases. Few commodities can match the complexities of issues impacting this significant expenditure.

According to Purchasing magazine, “Buying energy is like buying any other commodity – except it’s different.”

If you are beginning to think energy and other commodities might be as different as apples and oranges, keep reading. You just might decide they have even less in common. While we can’t cover all the differences, here are five key ones:

  • Geography matters
  • Volatile pricing and tight timing
  • Necessity of market intelligence
  • Not just aggregation
  • Measures of success

This paper explores these key issues with experienced professionals who manage the energy spend for their corporations. The consensus: Knowledge of these distinct differences empowers you to take the most effective approach to energy management.

Read the full white paper by downloading the PDF below:

  • Summit Energy

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