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Wednesday, January 19, 2022
HomeProcurementHow Digital Procurement Transforms the Way Companies Purchase Energy

How Digital Procurement Transforms the Way Companies Purchase Energy

Digital procurement can dramatically enhance the jobs of those who work in the corporate procurement organization. The energy spend category is a great example. Years ago, most companies received and paid bills from energy utilities without question, similar to how many consumers still pay their home energy bill today. However, competitive pressures on procurement organizations, combined with a proliferation of energy usage and pricing data, have created a digital revolution in the way companies procure energy.

Building Management Systems track temperature, humidity measurements, occupancy, and lighting levels against location-specific set points to ensure energy is not over-used (which leads to excess cost) or under-used (which can lead to occupant complaints).

Such systems communicate with corporate control centers, which also monitor equipment such as roof-top units and refrigeration for signs of wear or malfunctions (which would otherwise lead to excess cost or early failure) and dispatch service technicians to resolve issues prior to equipment failure. Augmenting all these people, systems, and sensors is optimization software, which controls equipment cycling and set points across a portfolio of sites to take advantage of energy price signals that fluctuate hourly and vary by utility.

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Tim Owen S. Yoro, ADPSM
Tim Owen Yoro has extensive experiences in the field of procurement and warehouse management, specifically in the IT industry. He is a qualified member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Tim completed the Advanced Diploma in Procurement and Supply Management (ADPSM) at SIPMM Institute in December 2017.


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