Zenith Energy Helps Mandarin Oriental Miami Optimize Energy Buy and Save 15%
Zenith Energy’s in-depth analytics and high-volume purchasing power helped the Mandarin Oriental Miami save time and secure a better energy contract in terms of pricing and risk.
Challenge: Gaining Control of Energy Costs
With a private beach, gourmet fusion restaurants and an exotic day spa, the Mandarin Oriental Miami is a Five Star resort and the only hotel in Florida to earn triple Five Stars in Forbes Travel Guide Five Star Award 2016. For Oscar Cardona, Director of Engineering, purchasing energy to keep this busy facility running was one of hundreds of ongoing responsibilities – something he had always contracted through traditional supplier auctions.
Bob Snoddy, Avendra Field Support representative, introduced Oscar to Zenith Energy, a leading energy procurement organization with a comprehensive approach to energy optimization. As Avendra’s sole preferred supplier of energy procurement services, Zenith offers a sophisticated level of financial analytics and market forecasting based on the unique needs of each customer.
In the end, their services helped the Mandarin Oriental Miami optimize savings and control risk on one of the most costly line items in any property’s budget.
Solution: Granular Cost Comparison and Decision-Support Data
Most energy purchasers look for pricing through obvious means: asking suppliers for a proposal. However, as Zenith Senior Energy Advisor Kevin Ritter says, “The price of energy is extremely volatile, and there are so many variables in the way energy is contracted. It’s critical to make sure you’re comparing apples to apples.”
Toward that end, Zenith began their approach through the package of services they call the “Three A’s:” Aggregation, Analytics and Alignment. Their standard services include:
- Data collection on current energy usage and rates;
- Analysis using specialized financial models and strategies; and
- Leveraged purchasing power based on having more than $1 billion in contracts under management.
Zenith’s 20-year background in working with energy-intensive facilities has given them the expertise to evaluate commercial energy contracts from a legal, environmental and risk mitigation perspective. Using their industry knowledge they were also able to assess less obvious conditions such as provider financial stability, billing practices, products and price a number of providers for the Mandarin Oriental Miami to identify the best overall package.
“In addition to immediate rate savings of usually around 10%,” Kevin explains, “we are able to negotiate and help execute fully transparent contracts that protect customers and make billing and supply more reliable. The bottom line is, we help our customers improve their energy purchasing programs in all market conditions.”
By drawing on its expertise, analytics and purchasing power, Zenith’s work with the Mandarin Oriental Miami produced a 15%cost savings and improved contract terms for the hotel’s purchase of natural gas. The additional benefit was a significant time savings for Oscar Cardona in gathering and analyzing supplier information – plus the added confidence that Zenith’s data provided the best possible terms.
In addition, as an Avendra customer, the hotel incurred no obligation for the investigative work, and participation counted toward the hotel’s Avendra spend incentives.
Zenith Energy Benefits: Review & Recommendations Optimize Energy Spend
- Strategies and active management of energy spend to drive savings of 10% or more
- Energy specialists with expertise in legal, financial, supply chain and engineering
- Consultative, collaborative working relationship customized to hotel needs
- Leading edge analytics and decision support for contract selection
- Best practices in procurement to balance savings and budget stability
- Improved purchasing power / rates based on aggregated high-volume activity
- Fees paid by supplier – no invoice, no obligation
- Ongoing tracking and validation of contract terms, acting as customer’s advocate
- Alerts on any new opportunities for future contracting
- Options to help reduce energy usage and carbon footprint