News
USA fleet members saved more than $20 million on Supply Chain so far in 2016
So far in 2016, Utilities Service Alliance (USA) fleet members have realized nearly $12 million in combined First Cost savings by purchasing services and supplies through USA supply agreements. Through three quarters, alliance members are on track for savings comparable to 2015, when base agreement savings totaled approximately $15.8 million for the entire fiscal year. First-Cost savings is the difference between the price paid by a participating company on a USA agreement and the price that company would pay to the same supplier if it contracted on an individual basis.
Total Cost of Ownership (TCO) savings of approximately $8.6 million through Q3 have already surpassed 2015 full-year total of $8.1 million. This brings the total amount USA supply chain agreements have saved USA members to $20.5 million through Q3 2016. Total Cost of Ownership (TCO) is supplier-furnished value that reduces the total cost of using a product or performing a service.
A third kind of savings USA members realize are rebate incentives. These encourage collaboration among members and promote increased utilization of Fleet agreements. “The more we pool our purchases, the higher rebate tiers we reach and all participants benefit by receiving a larger percentage rebate.” says Jim Kitchens, USA Director of Economic Strategies.
All savings are validated and accepted by the member utility before they are counted
USA administers more than 60 supply chain agreements, according to Margaret Vinsant, USA Manager of Supplier Relations.
“If members have supplier relationships beyond those maintained by USA,” Vinsant says, “they can bring them to our attention and we will fully explore how USA members might benefit from them.”
Vinsant may be reached at MVinsant@usainc.org or by calling (865) 898-6274.
In addition to administering a network of more than 60 nuclear suppliers, USA helps its members leverage their combined resources, talent and expertise to produce clean, safe, reliable and cost-efficient energy. USA is on the web at www.USAinc.org.