FRÄNKISCHE Rohrwerke values energy procurement at the push of a button
Industry: Metal and plastics producer
The family-owned company FRÄNKISCHE Rohrwerke from Königsberg has been developing and producing pipes, manholes and system components made of metal and plastic for 110 years. What began in 1906 in the spinning mill in Schweinfurt is now an internationally renowned company. Represented in 15 countries with 21 plants and 2,900 employees, the company offers custom-fit solutions for drainage, electrical, building services, automotive and industry. The technical competence as well as the high product quality make FRÄNKISCHE the market leader in many areas.
Search for transparency and competition
Responsible for energy purchasing at FRÄNKISCHE in 2017 was Holger Leschinski in the position of Head of Purchasing. Previously, the experienced purchasing manager adjusted to the fact that the procurement of electricity and gas would cost a lot of time and work. "Gas was negotiated directly with the individual energy suppliers. The load profiles, consumption points and consumption quantities were sent to different suppliers and final negotiations were carried out based on the results. That took about four weeks," says Holger Leschinski. The electricity purchase was similar: "In preparation, a few energy suppliers were asked for an offer and the different energy prices were painstakingly evaluated and compared. The effort was more manageable, but it also took two weeks," adds the energy buyer. He wished for faster processes and greater competition among the suppliers, because: The prices for electricity and gas are traded daily on the stock exchange. The longer the commitment periods, the fewer favourable market opportunities can be seized.
Process optimisation in energy purchasing
FRÄNKISCHE has been an enPORTAL customer since February 2016. Since all energy data is stored in the cloud, the purchasing manager can contact up to 620 suppliers at short notice via the online portal when market conditions are good. 24 hours later, the offers are available, which are clearly displayed in the automatically generated bidder comparison list. It can be seen at a glance which supplier offers the best energy price. After a two-hour binding period, the contract can be concluded. "It's easy to get an overview of the offers and the price difference is shown to me immediately. From our side, there is little effort behind it and it goes quickly," says Holger Leschinski.
Quick decision for the supplier of choice
The purchasing manager can also clearly show the price differences to the management. This not only shortens the decision-making time in the awarding process, but also minimises the risk premiums on the part of the suppliers. Since the suppliers no longer have to commit themselves to the price for weeks, prices close to those on the stock exchange can be achieved. When it comes to awarding contracts, however, Holger Leschinski from FRÄNKISCHE still decides himself which supplier he wants to use. Good purchasing timing, short response times and the great competition among suppliers led to an immense cost reduction: the pure energy price could be reduced by 30 per cent for electricity for the 2017 delivery year. Purchasing was done by mouse click in less than two hours.
"Success in energy purchasing is only possible with a strong network of verifiable data, market participants and experts - what counts in concrete terms: Keeping consumption data permanently up to date, using competition in the heterogeneous market and observing developments on the energy exchanges at all times. This is exactly what we offer with enPORTAL connect."
Years of success and market leadership
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