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Case Study

Site assessments identify $3 million in annual energy savings

In 2009 Jones Lang LaSalle was engaged by Philips Electronics North America to provide integrated facility management for 85 manufacturing, warehouse/distribution and office sites totaling about 8 million square feet.

Soon we were asked by Philips to seekways to reduce the $23 million spent annually by the company for electricity and natural gas at 40 sites where utility costs are notincluded in the lease. A team of specialists from our Energy and Sustainability Services group was retained to investigate savings opportunities at the Philips sites.

Our team completed 40 site assessments totaling 7 million square feet. To ensure uniformity we used our exclusive PEERS computerized analytical tool, which enables a consistent, standardized system to monitor, track, trend, report, compare and benchmark the energy performance of a facility. Through the site assessments we identified 166 potential energy savings opportunities that, if implemented, would save Philips $3 million annually. This savings, a 13 percent reduction in the company’s energy costs and reduction of 14,300 tons in carbonemissions, could be achieved with an aggregate payback of just over three years. Among the opportunities acted upon was the consolidation of bill payment and data management through one trusted Jones Lang LaSalle preferred provider. Prior to this, billswere paid in a variety of ways with no consistency, leading to data loss and occasional late payment fees from energy utilities.

Service beyond requirements
Although not required by our contract, our team delivered additional value by identifying a portfolio-wide cost avoidance opportunity through competitive procurement of electricity and natural gas. We worked with a Philips global procurement executive, educating him on competitive procurement processes such as reverse auctions, and developed an Energy Procurement Market Map to ensure process stability. Philips directed us to act on several of our identified solutions.

After the first 18 months, we helped save the company over $850,000 through opportunities identified in our site assessments, and an additional $928,000 through more competitive procurement strategies we recommended. This represents a total savings of more than $1.5 million after deduction of our services fee. Throughour efficient, experience-driven processes and preferred supplier relationships, we were able to deliver our services for almost 20 percent less expense than typical market costs.

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