Clients outsource their utility invoices to RadiusPoint to identify savings opportunities they are unaware of, or don’t have the time to manage in-house. In this case study, we show learn how RadiusPoint cuts the cost of utilities of a retailing/manufacturing client by as much as 13%.
Challenge
A national eyeglass and contact manufacturer and retailer had 170 retail locations and 3 labs. Operations of this size generate a very large number of monthly vendor invoices that have to be managed by usually undermanned Accounts Payable departments.
Prior to working with RadiusPoint, this organization dealt with 80+ vendors on a monthly basis. Their Accounts Payable staff had neither the expertise, nor the time to identify cost savings that can be typically managed in states with a deregulated utility industry.
The Accounts Payable staff were quickly becoming overwhelmed with vendor and invoice management.
Once the manufacturer realized the department needed help, they hired RadiusPoint to alleviate the workload. RadiusPoint immediately started the process of identifying savings for all the locations operating in deregulated states.
Solution
The first step to take to get a true picture of usage is to review all monthly invoices received over a period of at least 6 months. Usage patterns and numbers must be found out and quantified to obtain bids from competing gas and electricity vendors. A few of the vendors chose not to participate in the bid process in view of usage numbers.
RadiusPoint was able to narrow down the potential providers in each state, then request proposals based on our client’s actual usage.
Our Utilities Expense Management division analyzed the quotes of competing bidders, using actual usage figures to quantify the potential savings. We also analyzed other fees through the use of our proprietary SaaS platform, ExpenseLogic. We modeled the cost savings that could be achieved by switching to the most competitive utilities.
Results
The audits performed by our UEM team contributed to our clients’ management team to decide to move their locations’ utility services in 4 deregulated states.
As a result, our client was able to cut their utilities costs by 4% to 13% depending on location.
RadiusPoint’s UEM division manages utility invoices on behalf of clients on a daily basis.
Contact us to discuss our we could help your organization cut cost and achieve more savings.