Transforming Energy Procurement and Sustainability for a leading, global snacking company
Case Study: Transforming Energy Procurement and Sustainability for a leading, global snacking company
As a global leader in the snack industry and the producer of iconic brands, the company operates a vast and energy-intensive manufacturing network. With facilities across the UK, France, the Netherlands, and beyond, the company faces significant energy demands, spending approximately £34 million annually in the UK alone.
Despite its scale, the company found itself grappling with mounting challenges in managing its energy procurement. The company’s internal procurement team was stretched thin, responsible for sourcing everything from raw materials like wheat and cocoa to office supplies. Meanwhile, the volatile energy markets, increasing regulatory demands, and rising costs made it difficult to maintain competitive pricing for its products. The company was also committed to sustainability, aiming to integrate renewable energy into its operations but requiring advanced solutions to achieve this goal.
Recognizing these challenges, the company sought a partner who could streamline its energy management processes, provide in-depth market insights, and support its sustainability initiatives. In 2019, World Kinect stepped in to help the business navigate its energy complexities with a tailored, data-driven approach.
The Challenges
- Procurement Strain: Internal teams lacked the resources to optimize energy procurement alongside other critical business sourcing activities.
- Market Volatility: The fluctuating energy market and evolving regulations added layers of complexity to cost management.
- Sustainability Goals: While committed to purchasing 100% renewable electricity, the company needed a strategic partner to integrate and expand sustainability solutions effectively.
World Kinect Solutions
Comprehensive Energy Procurement Services
- World Kinect began by implementing an end-to-end procurement model for power, natural gas, and water. This included sourcing, tendering, and contract negotiation tailored to the needs of the company. A flexible approach allowed the company to manage its own trading, with World Kinect providing validation and detailed reporting through the World Kinect Online platform.
- This successful model was initially applied across the UK, France, and Netherlands operations and later expanded to include the United States.
Detailed Market Intelligence and Reporting
- To help navigate market volatility, World Kinect provided in-depth energy market intelligence. These insights enabled the internal team to make informed trading decisions and respond effectively to fluctuating market conditions.
Data Management and Bill Validation
- Accurate energy data management, including rigorous bill validation and annual budgeting, was another crucial service. These processes gave the company greater control over its operational budgeting and strategic planning, reducing errors and enabling more predictable costs.
Sustainability Integration
- World Kinect supported the sustainability strategy of the company by facilitating renewable energy procurement through bundled supply contracts. This approach ensured compliance and progress toward the company’s sustainability goals while reducing its carbon footprint. World Kinect continues to advise on further steps to achieve ongoing environmental objectives.
Business Impact
- Through its partnership with World Kinect, the company gained a structured and flexible procurement strategy underpinned by reliable data and expert insights.
Key outcomes included:
- Optimized Procurement: Streamlined sourcing and trading strategies tailored to market conditions
- Enhanced Decision-Making: Access to detailed market intelligence, improving strategic responses to volatility
- Budget Stability: Accurate data management and bill validation for predictable energy expenditures
- Sustainability Progress: Advanced integration of renewable energy solutions to meet environmental targets
