MeadWestvaco manages multiple plants across the U.S. and generates an annual natural gas spend upwards of $100 million. After meeting with members of the management team, we discovered that MeadWestvaco had been using a national energy firm to manage its natural gas supply for nine years, including natural gas procurement for each plant, imbalance management, and consolidated billing. This stuck out as a potential target for efficiency improvements and we began researching a more streamlined approach.
After careful consideration, we identified eServices as a potential big impact supplier and acquired the company. They had the capability to provide superior service, while adding value by acting as consultant for any transportation, LDC, and pipeline issues. The relationship began with eServices managing one of the largest MeadWestvaco facilities and quickly led to them becoming the Energy Manager for six of MeadWestvaco’s largest natural gas consuming plants.
eServices used a two-pronged approach in servicing MeadWestvaco. The first objective was to act as its operational desk and ensure each facility a reliable gas supply, while minimizing any pipeline penalties. Secondly, as Energy Manager, eServices did an initial energy audit to analyze the transport, storage, and the supply sourcing process for each plant. eServices outlined and implemented several strategies in which MeadWestvaco could further optimize its assets such as storage and transportation. eServices continues to provide consulting and ad hoc reporting for any storage, transport, fuel arbitrage, and hedging issues, while finding cost savings as MeadWestvaco’s operations change over time.
As a result of partnering with APCH and eServices, MeadWestvaco posts an annual MBE spend in excess of $100 million and awarded eServices with the Minority Supplier of the Year Award for 2010. The total client savings, which was realized across supply and transport systems, storage systems, pipeline negotiations and management, penalty avoidance, and gas/electric hedging, was over $4 million annually.