JELD-WEN finds facility intelligence opens doors to energy savings. (Changes in the Utility Industry Increase Energy Concerns).(Brief Article)

Starting out as a single Oregon millwork plant in 1960, JELD-WEN has grown into one of the world's largest manufacturers of doors, windows, millwork, and specialty wood products. When the company saw a chance to save on its sizeable energy bills, it set up an outsourcing relationship that provides both accurate energy data on its plants and detailed analysis of deregulated energy markets. JELD-WEN credits this service with helping save $4.7 million over the last four years.

Opportunity Knocks

JELD-WEN operates over 150 divisions with facilities across North America and on five other continents, selling under such brands as Wenco, Pozzi, and Summit. In the late 1990s, the privately-held company faced rising energy costs, particularly for its larger sawmills, millwork and fiber plants, and assembly facilities that utilized significant amounts of natural gas.

After building a fiber plant in West Virginia and identifying lower deregulated tariff rates for long-term gas contracts, the company recognized an opportunity. "With the size of plants we operate, we quickly saw that we could save a lot of money," says John Bacchetti, JELD-WEN's corporate utilities manager.

To take advantage of those opportunities, the company required accurate energy usage and cost data for its 75 U.S. sites. These data would allow JELD-WEN to compare and track usage at and across its facilities, identifying those that could qualify for lower rates. The company also needed someone to analyze the commodity markets, suppliers, and tariff rates for potential savings.

Finding the Answers

JELD-WEN officials investigated several energy service providers, and in March 1998 they decided to outsource facility bill management for all U.S. sites to Avista Advantage and its facility intelligence system. Through this outsourcing arrangement, bills are sent from each facility's utility service provider to Avista Advantage to be audited before payment, producing initial savings by identifying incorrect rates and billing errors. Data from each bill are entered into an online database, which JELD-WEN financial professionals and energy managers can access through Avista Advantage's Facility IQ Web site.