Hotel Chain Saves £44,000 Within 4 Months

Sector: Hotels

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Agile account management secures significant savings

How We Helped

We were delighted to be appointed by a customer with a chain of hotels in the UK and Northern Ireland.

Within just 3 weeks of being appointed Clifford Talbot Partnership had obtained all necessary consumption data, issued, and closed four separate electricity and gas supply contract tenders with a total annual spend of over £1 million.

These tenders achieved savings of over £21k (compared to the market price), well in excess of our fixed (and transparent) fee for all of our services.

More importantly we helped our client avoid having the supplies revert to very expensive out of contract rates or uncompetitive rollover rates with the previous suppliers.

If all the savings we have identified are realised our client will have a payback of less than 20 weeks covering the cost of all of our services including bill validation, ongoing monitoring and reporting. In addition most of these additional savings, once realised, will continue to save our client money year on year.

Challenges: Timing of our appointment was very close to their contract renewal date... we had to act fast to ensure all contracts were agreed in time Their previous consultant was appointed for procurement-only... therefore some opportunities for cost savings had been overlooked

Results

Saving £21,000

Tenders achieved savings of over £21k (compared to the market price), well in excess of our fixed (and transparent) fee for all of our services.

Heath check saves further £23,000

In addition to the savings made by the procurement activity we were able to undertake a health check on all of their utility accounts for additional savings. Over £23k of additional annual savings were either identified or achieved within the first 4 months of our appointment.

Supply capacity optimisation saves over £9,000

Identified potential savings from supply capacity optimisation which could save £9.4k per annum

Improved energy management saves over £9,000

Identified poor heating control at 4 hotels, which would save over £9k via improved energy management.

Negotiated supply contract saves £2,800

Negotiated electricity meter operator contract, which will save £2,800 over the duration of the contract period compared to the previous rates

Identified erroneous charges saving £780 per year

Identified potential erroneous ‘poor power factor’ charges with estimated savings of £780 per annum.

Clifford Talbot Partnership saved our client a total of £44,000

Client benefit of the Utility Bureau service going forward

Advice about changes in the industry, such as the costs associated with DCP161, as several of their hotels were exceeding their agreed capacity.

Monthly reports with accruals, plus consumption and costs for previous 13 months

Hotels are contacted when consumption is outside agreed thresholds – early warning of issues ensures prompt resolution avoiding longer periods of high consumption and costs

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