LATEST MARKET UPDATE: Following a spate of panic-buying yesterday (12th January), gas and power prices have opened down in early trading this morning. Spot prices remain historically high today, but indications are that European traders’ anxieties following a spike in demand in the Asian markets may have been excessive.
Working in partnership with Utility Team, DPD were able to optimise their business energy strategy. Utilising our energy expertise, we helped optimise DPD’s energy usage and deliver impressive cost savings. All of this was done at a time when DPD having to navigate a surge in service demand due to the lockdown measures put in place to combat the COVID19 pandemic.
DPD is an instantly recognisable brand and one of Europe’s leading parcel groups. They are wholly owned by France’s La Poste, Europe’s second largest postal group. They are the UK’s favourite parcel delivery company – providing innovative, high quality and time sensitive solutions. The DPD team exceeds 15,000 people, operates 10,000 vehicles from 84 locations. They deliver 260m parcels a year and play a crucial role in keeping UK business moving.
DPD approached Utility Team to help improve its energy strategy and reduce spend across its portfolio. This was to be achieved by identifying ways to optimise energy usage and giving DPD the tools to monitor their consumption across their portfolio. In addition to reducing energy spend, DPD required the energy strategy to support their Net Zero commitments. DPD prides itself on being Net Zero at no extra cost to its customers.
At the time of appointment, the organisation was planning for growth. However, the COVID pandemic significantly increased the demand for the express parcel sector. DPD knew they could help businesses during this time of global uncertainty. This led to the expansion of its portfolio to meet the increased demand. This added a layer of complexity and urgency to an already complicated challenge.
To develop the best business energy strategy, we had to understand the energy requirements of all 80 sites in the portfolio. Our team carried out an extensive analysis of the group and using the data identified the best course of action. Utilising our pricing team’s industry expertise, we were able to secure a 3-year fixed-rate contract extension that provided cost savings across the group. Part of the strategy involved bringing the entire portfolio under one supplier, this helped reduce administration time as well as cost. Our team was also able to secure 100% renewable energy, helping DPD with their Net Zero commitment.
To make sure we onboarded the entirety of the portfolio seamlessly and continue to understand the organisations requirements we put in place a dedicated account management team. The team helped implement our energy management portal. This gives the team at DPD the ability to view their consumption data. We also imported three years of historical data so DPD can carry out year-on-year benchmarking.
In addition to this, we also carried out a KVA analysis to see if there were opportunities for cost reductions. Through the examination of the data, we were able to outline several actions that, if implemented, could drive down energy costs.
We started working with Utility Team in January 2020 and they have quickly become a valued partner. In the nine months, we have worked with them, they have played a significant role in helping us navigate the challenges that the COVID-19 pandemic has presented. In addition to helping us reduce our energy costs, they have helped us open 13 new sites on schedule. Their expertise and pro-active approach set them apart in the business energy market.
Trevor Berry - Environment Sustainability Manager, DPD