WD Co-Auto & 8760: Optimizing Energy Costs for Auto Dealerships
Leveraging Collective Buying Power: WD Co-Auto’s Approach to Auto Dealership Savings
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About WD Co-Auto
WD Co-Auto is a member-owned buying group that prides itself on delivering value and savings to auto dealerships across western Canada. Formed in the early 1980s under the notion that there is strength in numbers, WD Co-Auto leverages the buying power of its large membership group to purchase goods and services in bulk at reduced prices and passes those savings onto its members. Using a centralized management approach, members also benefit from a one-stop shop for the majority of the products and programs needed to run their auto dealership.
Energy Optimization Challenge: Streamlining Costs and Efficiency for Auto Dealerships
In keeping with their buying group philosophy, WD Co-Auto was looking for an energy program that would:
- help dealer members to optimize/reduce their electricity and natural gas expenses
- simplify the procurement process for securing electricity and natural gas contracts for all participating dealerships and
- identify other cost savings or efficiency gain opportunities that could benefit dealers’ bottom line
Strategic Energy Management: 8760’s Tailored Solution for WD Co-Auto
Comprehensive Approach
8760 worked closely with WD Co-Auto’s executive management team to identify the primary goals and objectives with respect to their energy management activities. 8760 utilized its unique RFP and aggregation process to secure competitive pricing bids from energy Retailers for a large group of WD Co-Auto dealerships. This resulted in a pricing structure that significantly lowered the Retailer’s margin over wholesale cost in comparison to what the dealer members could have achieved individually on their own. In addition, the energy program was managed by 8760’s sales team which simplified the signing and management of related paperwork which made it very efficient and simple for participating dealers.
Distribution and Transmission Cost Review
A second focus of the WD Co-Auto program was to review the distribution and transmission (D&T) costs for all WD Co-Auto contracted electricity sites in Alberta. Although D&T costs are regulated, misaligned cost drivers such as contract demands, rate classifications, rate riders, metering irregularities, changing building conditions, etc can lead to unnecessary cost overages.
Measurable Impacts: Cost Savings and Efficiency Gains Through Expert Energy Management
Using 8760’s approach, the following results were achieved for WD Co-Auto members:
- A strategic, managed energy program that provided significant cost savings with respect to the procurement of their electricity and natural gas contracts for participating members in comparison to procuring similar services on their own.
- For the D&T cost review, a number of discrepancies/opportunities were identified with annual savings ranging from $3000 to $15,000 (average of $10,000) per impacted dealership.
- 8760 worked with the wires providers to validate the discrepancies and to ensure any opportunities for improvement were implemented. These activities reduced D&T costs at impacted dealerships by an average of 20%.
Client Testimonial: WD Co-Auto’s Success Story with 8760’s Energy Expertise
“WD co-auto has been partnered with 8760 for a number of years with respect to our energy needs for our membership group and it has been an excellent relationship.
8760 are experts in the management of expenses related to the procurement of electricity and natural gas. Their knowledge of these industries along with their understanding of what is important to our dealer members enabled them to put a program in place that has provided significant savings along with cost certainty, transparent pricing and strategies that actually deliver on what 8760 promises. Not only that, but the 8760 staff are professional, friendly and great to work with. We couldn’t ask for a better partner.
I would encourage any business to give 8760 the opportunity to review your electricity, natural gas and D&T cost review programs as there is a very good chance they will be able to help improve your situation. We engaged their services and it has provided an exceptional return for our organization.”
– Mike Reid, President & CEO, WD Co-Auto