Food for Thought: Strategic Energy Sourcing Saves Manufacturer Nearly $1 Million

The decision to outsource an organization’s energy management program can be a difficult one. For companies such as B&G Foods that have managed their energy spend with a small, internal team, losing the day-to-day control of purchasing energy is a bold and often scary endeavor. However, global enterprises in all sectors have come to learn that relying on the expertise of a consultant can provide a tremendous return on investment.

“Last year B&G Foods North America made the decision to utilize Schneider Electric to manage our energy spend. The decision was not an easy one, but I couldn’t be more pleased with the 25-to-1 return on investment the team has achieved on our behalf.” – Marty Schoch Senior Director Procurement B&G Foods, North America

Situation

B&G Foods, Inc. and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, branded shelf-stable foods across the United States, Canada and Puerto Rico. The B&G team, behind the leadership of Marty Schoch, knew there were energy savings they weren’t able to find in their supply agreements on their own. After a thorough review of energy management consultants, they made the decision to outsource their energy procurement to Schneider Electric’s Energy & Sustainability Services.

Leadership

The B&G Foods’ energy program was highly decentralized, meaning that supply decisions were made at each individual location and were not part of an enterprise-wide strategy. The Schneider Electric team was confident that B&G Foods would benefit from a centralized energy bill payment platform and consolidated data collection process. Once this fundamental piece was in place, energy procurement was the next area of focus.

Together, Schneider Electric and B&G Foods worked to implement a unified energy sourcing strategy, quickly and seamlessly. Once the procurement strategy was in place, the Schneider Electric sourcing team evaluated every energy market where B&G Foods had facilities, finding areas where costs could be optimized.

Results

Once Schneider Electric began to manage B&G’s energy spend, the food manufacturer realized more than $850,000 in savings across seven sites in North America. This represented a more than 25-to-1 return on investment for the company during the first few months of the partnership. Even more activity is planned to add to the savings for B&G Foods.