Elkjøp save €460,000 on energy by staying ahead of the market

Industry

Consumer electronics

Location

Norway

Challenge

Elkjøp (known as Elgiganten, outside Norway) is the largest consumer electronics retailer in the Nordics, with 400 stores in six countries and 10,000 employees, owned by Dixons Carphone. To remain a leader in the competitive consumer electronics space, the business operates with ‘lean’ principles to provide the most customer-centric, affordable products in the market.

Kinect Energy Group manages energy procurement, ongoing cost controls and reporting for Elkjøp. The goal is to ensure that their energy portfolio gives them the best value so they can continue to offer a range of electronics at competitive prices to their customers.

Overview

Our procurement teams advised Elkjøp on the most efficient energy contracts available so they could make informed energy choices. In 2018 they saved €460,000 in a 10-month period compared to the spot market, by securing a fixed price.

Solution

Kinect Online, our web-based portal, offered Elkiop complete transparency of energy costs, consumption, and carbon emissions across their portfolio. Importantly, the data is also broken down by store location allowing them to focus efficiency efforts on individual stores. The ability to review data by site is especially important to this multi-site retailer, as it gives them more control and valuable insights to shape monthly energy efficiency action plans. One store saved almost 19,000 Euros annually when the nightly base load was reduced and the practice of running heating and cooling at the same time was rectified.

We also support Elkjøp with regulatory compliance so they can rest easy knowing they are 100% in compliance of local and regional regulations. By conducting regular energy audits, we provide data to Elkjøp that can be used for mandatory reporting purposes.

Summary

Elkjøp believes in working in partnership with their suppliers to get the best outcomes for their customers, which is why our 15-year relationship has worked so well. We understand Elkjøp’s objectives and work together with the common goal of providing an energy portfolio that provides the best value. This goal continues long after their annual energy contracts are placed, with ongoing energy management and audits to maintain efficiencies and prevent waste.

“Providing customers with the right products at the right price is central to our business. As energy contributes a significant part of our total costs, it needs to be managed and controlled closely. Kinect Energy provide me with the information I need to optimize energy consumption in our stores by highlighting changes in usage and recommending how we can become more efficient.”

Stein Magnus Olafsrud, Head of Indirect Sourcing, Elkjøp Nordic