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Crude oil prices that are sky high and unstable global energy markets require retail and wholesale buyers to deploy smart energy procurement strategies to keep energy costs under control. Traditional energy procurement methods get the job done, but at a cost of time, accuracy and outcomes. The time required to manually conduct energy trades reduces productivity and often doesn't generate enough competitive bidding. The manual process is often inaccurate and cannot be audited for compliance. As a result, companies that rely on manual procurement processes leave themselves vulnerable to increased risk and higher energy costs.
- Phone Trades: Labor intensive and can result in inconsistent record-keeping and does not guarantee lowest energy purchase price
- Paper RFPs: A slow process that doesn't provide an objective audit trail required by SOX
Today's retail and wholesale energy buyers don't have the luxury of securing anything less than the most competitive energy pricing available, as efficiently and quickly as possible. Online energy exchanges, like The World Energy Exchange, stand out among energy procurement strategies for their ability to reduce energy costs, minimize energy procurement risks and achieve compliance.
A leader among energy procurement strategies, reverse auctions use technology to drive competition and reduce energy prices. The World Energy Exchange uses an automated web-based platform to stage reverse auctions that drive highly competitive bids that give buyers the competitive advantage. The speed and automated process of the World Energy Exchange is so effective, customers can often receive completed, competitive contracts within an hour of their auction close.
- Reverse Auctions: Hyper-competition and price transparency result in rapid contracting, reduced risk premiums and satisfied stakeholders
The reverse auction succeeds where traditional energy procurement methods can't compete: by getting energy suppliers to compete against each other, and their own lowest bids, to give buyers the most competitive energy prices quickly, efficiently and reliably. |
