CEC vs Consortiums

We are part of a Consortium we don’t need CEC do we?

A lot depends on the make up of the consortium. By joining this kind of group, a larger user could be subsidising the other members rather than getting the full benefit they would if considered in isolation.

CEC’s objective is to review each client’s requirements on an individual basis, negotiating supply contracts specific to their individual requirements. This process targets best price and contract structure.

Consortiums get the best rates by putting a bundle of sites together?

When Consortiums go out to tender, their priority is to get the best aggregate price. If this means that some members get a poor deal, they are not concerned, so long as the total is the lowest. Your supply arrangements would be part of one large ‘super customer’.

CEC’s service is fundamentally different in that we would have a working arrangement with your company as an individual, fine -tuning arrangements to ensure you pay the true price for what your consumption level and contract structure commands.

Consortiums employ professional buyers; they get the best deals, don’t they?

That is the intention, but the biggest problem is lack of flexibility. The procedures they lay down simply do not allow room for negotiation. They have rigid timetables for tendering. The date for a decision is decided long in advance, regardless of where the market is going. They set the length of contract at the tender stage and stick to it regardless. They take the best bid put forward, even if it shows some sites to be very expensive and others unreasonably cheap.

CEC policy is much more flexible and we can strike the deal when the market is most favourable, during the long period that we leave tenders open. We stay flexible and share the options with our clients. We target anomalies and make sure each client gets the best deal. We actively negotiate with suppliers.

Surely my Consortium will get me the best deal?

Unfortunately you can’t be sure. You delegate the sole responsibility for contract negotiation to them. Consortiums strike a deal, which you don’t normally find out about until after the event.

Using CEC you are in control, you do not forfeit the right to carry out your own negotiations with suppliers, therefore all prices and negotiations are transparent. You are assigned your own personal analyst who will report to you what true options are available, allowing you to make the right decision for your company.

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