Government & Schools – Mass Transit
A large regional mass transit authority located in the Southeastern US.
Customer was bidding out 100% of their volume on an annual basis. They experienced frequent problems where they might not meet their anticipated monthly volume demand and the supplier would then penalize them, especially if the fixed price was above prevailing market levels.
Guttman Energy suggested that the customer bid out a smaller percentage of their anticipated demand (80-90%) which gave them flexibility in case demand was lower than expected.