If your job involves fuel-related procurement, supply chain operations, category management or corporate social responsibility, this might be worth a read.
For businesses like our client Garic, identifying opportunities to reduce the total cost of ownership (TCO) of its fuel-related operations is understandably appealing – especially in a commercial environment where margins are already tight.
The company operates in the highly competitive construction sector as well as others such as highways, rail and many more; Garic is one of the most trusted nationwide plant and site equipment providers in the UK.
What makes Garic the perfect TCO candidate
It manufactures, hires and sells anything a business might need for a site from welfare units to power generators – delivering the equipment all over the country. Naturally, this means fuel is a major expenditure for the business.
Certas Energy supplies fuel to Garic’s head office in Bury as well as its customer sites throughout the UK, also advising on fuel safety and security on a regular basis.
Always looking to add value for customers, Certas Energy Head of Business Development and Commercial National Accounts, Jamie Hodges approached Garic with a view to introducing its free Total Cost of Ownership (TCO) service. As a business that continually looks to improve its customer service and efficiency, Garic actively welcomed the opportunity.
But, what does Total Cost of Ownership (TCO) really mean?
For Garic, the Certas Energy TCO consultancy service involved a thorough consultation process and comprehensive review of the company’s complete fuel value chain.
Partnering with a strategic team from various departments at Garic, Certas Energy started by gathering the necessary data from key sources to be able to undertake detailed financial analysis.
Explaining what the Certas Energy team is looking for, Jamie Hodges said: “Every business of course has its own commercial goals but there are some key fuel-related areas we dive into. For example, fuel selection and procurement, working capital analysis as well as addressing fuel usage, waste and idle time.
“For some organisations, opportunities can arise in areas like safety, health, environment and quality otherwise known as SHEQ. Others benefit in terms of admin, management and reporting to help with maintenance scheduling and avoiding unnecessary downtime.
“We’re also able to support with planning for future energy requirements, especially, as for many sectors reducing carbon emissions is a priority right now.”
A partnership approach with Garic
As a rule, the TCO process leads to recommendations that can make typical savings of up to 10% on fuel-related costs over a three-year period.
For Garic, Certas Energy identified opportunities for significant efficiencies and savings throughout purchasing, storage, payment, fuel and fleet management.
A spokesperson for Garic commented on the TCO process, saying: “Working with Certas Energy helped us to identify and realise significant savings within our fuel value chain. Their team of experts took the time to really get to know our business, our model and the day-to-day challenges. Backed by their extensive knowledge of our business, plus knowledge of the fuel industry as a whole, Certas Energy not only made value adding and cost reducing recommendations but has also helped us implement the required changes. The process was straightforward and we would recommend it to anyone who is looking to work with their supplier to find improvements/cost reduction in the supply chain.”
But, it doesn’t stop there. The process is on-going and Certas Energy is able to support with implementation where required to ensure clients can achieve impactful, long-term cost reductions.
Want to enquire about TCO for your business?
Find out how our consultancy services and fuel options can help you make cost saving changes to benefit your operations.