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June 9, 2023

DTS Case Study - Kendal Nutricare - Cost Savings

Immediate cost savings despite the challenging market.

When Kendal Nutricare approached us, they expressed their desire to transition to a stand-alone flexible purchasing strategy for energy procurement. Their previous provider had declined this request, prompting them to seek an alternative solution. Additionally, they were eager to gain insights into their energy consumption patterns across their facilities.

Our Approach

We leveraged our extensive network of supply partners to negotiate a customized purchasing framework for Kendal Nutricare, resulting in immediate cost savings despite the challenging market conditions. Alongside this, we implemented our cutting-edge real-time asset-level submetering solution across their entire estate. This technology provided valuable insights into Kendal Nutricare’s consumption profiles, proving invaluable for their business operations.

The Results

Within just three months of signing the initial framework agreement, our successful hedging strategy delivered costs significantly lower than originally forecasted. Impressed by the performance, Kendal Nutricare extended our partnership until 2028. We are delighted with the outcomes achieved thus far and eagerly anticipate the future of our collaboration.

Future Enhancements

Building upon our success, we are currently progressing with a comprehensive system redevelopment project. This involves replacing Kendal Nutricare’s commercial boiler system with a combined heat and power (CHP) solution. This strategic upgrade will significantly reduce their reliance on grid power and further decrease costs across their estate. Stay tuned for further updates on this exciting development.

We are proud to support Kendal Nutricare in optimizing their energy efficiency, reducing costs, and enhancing sustainability across their operations. Our partnership continues to thrive, driven by a shared commitment to innovation and progress.

“As manufacturer of high quality infant formula using whole milk we are a high energy consumer of gas and electricity. It was therefore important to us that we partnered we an organisation which is highly knowledgeable and proactive in hedging our gas and electricity purchases and helping us find solutions to improve and monitor the efficiencies of are processes on an asset by asset basis. The expertise in understanding our business, needs and aims was refreshing and the gas and electricity trading strategy was discussed and implemented painlessly. For myself and the engineering team the provision of their submetering solution has assisted us in further improving our manufacturing facility by giving us real time and historic trends in gas, electricity, water and steam usage and has been invaluable. Direct Business Solution have also assisted us in our carbon reduction planning and projects to a very detailed level in the same proactive offering which has added a lot of value to us. I, on a personal level, am very pleased with our partnership and look forward to Direct Business Solution assisting us in our growth." Tim Hallam - Financial Controller @ Kendal Nutricare

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