Same-day Strategic Decision-making to Avoid Lapse in Coverage and Reduce Cost
Client Background
This manufacturer, a leader in emergency power systems, encountered a critical challenge in late August 2022. Their existing natural gas contract was expiring, and extending it would mean paying steep daily premiums. With only days to act and a 45-day lead time for switching suppliers, the stakes were high: failure to secure new contracts could result in unnecessary costs and operational risk.
Challenge
The client needed to avoid costly daily premiums while ensuring continuous energy coverage. Traditional procurement timelines were too slow for their situation, and the complexity of comparing multiple supplier options added pressure to make the right decision quickly.
Solution
Mantis Innovation deployed its advanced procurement platform and expert advisory team to guide the client through a rapid decision-making process. Using our Live Reverse Auction technology, we created a competitive bidding environment that allowed the client to evaluate multiple strategies in real time. Options included re-signing with their incumbent provider, contracting with a low bidder despite a 45-day lead time, or engaging directly with the utility for a turnkey solution. Within hours, the client had clarity and confidence to move forward.
Results & Impact
The outcome was decisive and impactful. The client finalized their energy procurement strategy within three hours of the auction’s close, avoiding any lapse in coverage and securing substantial savings compared to market rates. Over the next 36 months, they benefited from contracts that delivered measurable cost reductions and operational stability.