When decentralized operations impede entering new markets
kdc (kdc/one) is a multi-national consumer packaging manufacturer. As a trusted provider of value-added solutions to over a thousand leading brands in the beauty, personal care, and home care categories, they strive to lead through innovation and exceptional service worldwide.
While their expertise allows them to overcome all possible design, packaging, and delivery challenges, operating 25 facilities globally, each with its unique energy setup, is a demanding task. When managing global operations, it’s essential to consider different financial regulations, supply chain elements, and the particular characteristics of local energy markets.
After looking at the ambitious growth plans, which required a balance of risk management, agility, and cost-efficiency, they decided that finding a trusted partner to manage all energy matters would be the perfect solution.
One point of contact. All energy challenges solved.
Without a formalized energy management strategy, i.e. relying on a decentralized model of operations, the company was losing money every second its facilities used electricity and natural gas – in other words, 24/7.
Furthermore, kdc operates facilities in Canada and the US, where each province and state has its unique energy market with specific pitfalls and challenges. The ambition to navigate them and build an effective energy strategy made the company realize it needed an industry professional with extensive expertise. That’s where DNE Resources came in.
First, in 2015, DNE established the kdc’s natural gas and electricity programs in Quebec, Canada. Since every facility had a different utility setup, DNE started with the sites that would have the most significant impact on the bottom line, resulting in instant cost reductions.
Up to now, DNE has also led the establishment of energy infrastructure in kdc’s new markets. Expanding into over 20 new sites in California, Florida, Virginia and Wisconsin, kdc relied on DNE to negotiate the financial burden and coordinate the installation and setup of the utilities. DNE reviewed several programs from up to five suppliers for each facility and picked the best offer considering utility and market regulations.
Moreover, DNE has expanded its services to become a trusted advisor for the company’s ESG goals, and in 2018 DNE started 100% renewable electricity programs for kdc. By working on reducing its carbon footprint, DNE has managed the financial planning and management of kdc’s renewable energy program by creating custom wind electricity programs.
Tremendous savings and reaching ESG goals sustainably
With only one point of contact for all energy matters, from setting up utilities for facilities in the new markets to purchasing RECs to meet ESG goals, kdc managed to move from decentralized operations to a streamlined energy model.
The savings are ongoing: over the last seven years, DNE has reduced their energy expenses by over $1,000,000. Other benefits include:
- Access to more competitive block rates;
- Streamlined communications and administration of supplier accounts;
- Transparency in the risk management of the energy portfolio;
- Budget planning and energy support for expanding into new markets.
DNE also purchased 107,000 MWH of RECs, ensuring that the company stays on track to reach its ESG targets.
Summing up, when a company’s energy use varies across multiple facilities regulated by different markets, knowing what to pay attention to while choosing an energy program is crucial. Finding a reliable energy partner has proved effective and impactful for kdc: this decision resulted in considerable savings over the years and allowed kdc to start its renewable energy journey with all the necessary support and expertise.
DNE is proud to help organizations all over North America reach their goals by solving energy-related challenges using a unique, white-glove approach. The North American leader in energy services is committed to providing Education, Convenience, and Leverage in every touchpoint with customers.