Summit helps paper company navigate credit concerns

Don't Lose Resource Advisor!

As part of our brand migration to Schneider Electric, the Summit Energy website will be transitioned to Schneider Electric soon. That means that if you rely on the Summit Energy website for Resource Advisor access, you should bookmark the Resource Advisor homepage now so you don’t forget the link. Click on one of the buttons below to quickly add Resource Advisor to your browser favorites or get the link via email.

Don't Lose SourceView!

As part of our brand migration to Schneider Electric, the Summit Energy website will be transitioned to Schneider Electric soon. That means that if you rely on the Summit Energy website for SourceView access, you should bookmark the SourceView homepage now so you don’t forget the link. Click on one of the buttons below to quickly add SourceView to your browser favorites or get the link via email.

Don't Lose Energy Reports!

As part of our brand migration to Schneider Electric, the Summit Energy website will be transitioned to Schneider Electric soon. That means that if you rely on the Summit Energy website for Energy Reports access, you should bookmark the Energy Reports homepage now so you don’t forget the link. Click on one of the buttons below to quickly add Energy Reports to your browser favorites or get the link via email.

Don't Lose Smart Meters!

As part of our brand migration to Schneider Electric, the Summit Energy website will be transitioned to Schneider Electric soon. That means that if you rely on the Summit Energy website for Smart Meters access, you should bookmark the Smart Meters homepage now so you don’t forget the link. Click on one of the buttons below to quickly add Smart Meters to your browser favorites or get the link via email.

Summit Energy’s Strategic Negotiations Help Paper Manufacturer Weather Tough Credit Times

Learn how Summit Energy helped a large paper manufacturer take a strategic approach to vendor relationships and payment terms. When negotiating with energy suppliers, market knowledge and industry influence are critical to reaching an equitable agreement.

A Changing Credit Landscape Calls for Strategic Negotiations: Even great companies sometimes face credit concerns. During these times, companies look to their vendors and suppliers for flexibility. Unfortunately, rather than becoming more flexible, vendors and suppliers tend to implement more restrictive terms when working with credit-challenged companies. This practice places further financial strain on companies, making it even more difficult to pay bills on time, including energy bills. To “keep the lights on” during hard financial times, companies need to take a strategic approach to vendor relationships and payment terms. When negotiating with energy suppliers, market knowledge and industry influence are critical to reaching an equitable agreement.

SITUATION
A national paper manufacturer, hit hard by lagging newspaper, magazine and catalog sales, was struggling to keep four of its large paper mills running. As a result, it was having difficulty keeping current on payments – including its energy bills. The company’s energy suppliers were restricting credit and demanding payment terms that the manufacturer was not able to accommodate. This situation was threatening the future of the business. During this challenging time, the manufacturer turned to the experts at Summit Energy to facilitate an interim agreement with the energy supplier.

LEADERSHIP
In its role as an energy partner, Summit fulfills many needs for clients, including negotiating on their behalf for more flexible payment terms. Summit understood that if the paper manufacturer did not get some relief on payment timing for their energy bills, then the mills could be shut down. Summit approached each of the suppliers to discuss the client’s contract options and negotiate more favorable bill-payment terms. Summit’s strong supplier relationships and the client’s sizeable energy spend created a receptive environment for negotiation.

RESULTS
Summit worked diligently with the energy supplier for each of the manufacturer’s four sites to negotiate acceptable payment terms, balancing the unique requirements of each individual facility with the needs of the client and its different suppliers.

While Summit could not wholly eliminate the manufacturer’s credit issues, the negotiations assured that mills were no longer at risk of having their power supply shut off. Summit was able to put the paper manufacturer back on track and in a better position to gain control of its financial situation. With Summit as its energy partner, the paper manufacturer was able to address its credit issues while still operating its mills and producing paper.

  • Summit Energy

  • © 2010 Summit Energy Services. All rights reserved.

10350 Ormsby Park Place • Suite 400 • Louisville, KY 40223 • (866) 90 SUMMIT