In today’s competitive business environment, every dollar saved through smart supplier management goes straight to your bottom line. In contrast, every extra dollar earned through sales only adds a fraction to your profit after costs. Yet, while many businesses invest heavily in Customer Relationship Management (CRM), Vendor Relationship Management (VRM) often gets overlooked—missing out on major savings, efficiency gains, and supplier-driven value.
At Total Utilities, we believe it’s time to flip the script. By taking a structured approach to VRM, Kiwi businesses can reduce costs, strengthen supplier relationships, and unlock long-term financial advantages.
Why Vendor Management Matters More Than Ever
While CRM is essential for growing revenue, VRM is just as critical for protecting and enhancing profit. Every dollar saved through better supplier management is a dollar earned—without the overheads.
Strong supplier relationships don’t just lead to better pricing. They also reduce operational risks, improve service levels, and create opportunities for innovation and collaboration. When you give vendor management the same attention as customer management, you’re not just running leaner—you’re running smarter.
Why Now is the Right Time for VRM
Vendor Relationship Management (also known as Supplier Relationship Management or SRM) is gaining momentum across Aotearoa and globally. If you haven’t embraced it yet, now’s the time.
VRM is about more than just managing contracts. It’s about using the right tools, processes, and insights to build stronger, more strategic partnerships with your suppliers. Done well, it helps you unlock value you didn’t even know was there—while reducing costs and improving resilience.
Cutting Costs Where It Counts
Suppliers often account for a significant portion of business expenses—sometimes more than internal costs. That’s why focusing on supplier relationships is one of the most effective ways to reduce spend.
Negotiate better pricing and terms
Access exclusive discounts and incentives
Reduce hidden costs from delays, errors, or inefficiencies
Loyal suppliers are more likely to go the extra mile—offering faster lead times, proactive service, and even value-added extras at no extra cost.
Maximising Value, Not Just Minimising Spend
Vendor management isn’t just about cutting costs—it’s about getting the most from every dollar you spend.
With the help of automation and data insights, you can:
Monitor supplier performance and risk
Identify trends and opportunities
Make proactive, informed decisions
When suppliers feel valued and engaged, they’re more likely to prioritise your business, offer competitive pricing, and collaborate on ways to improve performance.
The Bottom Line
Effective vendor management delivers more than operational efficiency—it delivers strategic and financial advantage. It means:
Lower costs
Better deals
Fewer surprises
Stronger competitive positioning
In short, it’s about working smarter—not harder—to drive profitability.
How Total Utilities Can Help
If this resonates with you, we’re offering a 50% discount on our vendor management consultancy services to the first 10 early adopters.
You’ll work directly with our in-house expert, Cathy Adams, to:
Optimise supplier relationships
Reduce costs
Maximise value
Ready to get started? Contact us now to claim your discounted consultation and take control of your vendor management strategy.
As the southernmost commercial deep-water port in New Zealand, South Port NZ worked with Total Utilities to implement Centrica Business Solutions’ Panoramic Power™ technology – avoiding costly upgrade projects and increasing available storage capacity.
80% increase in container storage days compared to previous year
10mins to collect data from 51 revenue meters across site
$600k savings from avoided capital project expenses (USD)
Increasing capacity of available on-site storage
South Port NZ is a deep-water port on a 40-hectare Island located in Bluff, New Zealand, from where it provides a full range of marine services, cargo and container shipping, and on-site warehousing for domestic and international customers.
In 2019, South Port NZ partnered with Total Utilities to better understand the actual power demand of the site, identify opportunities to increase existing storage capacity and deliver customised solutions to meet the needs of customers on the island. An initial supervisory control and data acquisition (SCADA) solution was proposed by a 3rd party vendor to address the needs, which came with a price tag of NZD$800,000.
As a partner of Centrica Business Solutions, Total Utilities supplied and DECOM Electrical installed Panoramic Power wireless, device-level, energy monitoring sensors at the port. After a month of capturing the data and analysing it using Centrica Business Solutions’ complimentary energy management software, PowerRadar, South Port NZ deployed an additional 229 Panoramic Power sensors and over 30 communication bridges across the port with minimal interruption to operations. Within days, the on-site infrastructure team gained real-time, granular visibility into the energy consumption and operation of their critical assets across the site. The easy-to-install energy insights solution now transmits data securely via cellular connectivity – monitoring more assets than the initial proposed SCADA solution, at a fraction of the cost.
“PowerRadar provides real-time data on demand versus capacity which allows us to maximize our electrical PowerRadar provides real-time data on demand versus capacity which allows us to maximise our electrical infrastructure while minimising risk. Being a small team looking after the engineering infrastructure of a 40-hectare island, takes a lot of our time. Having something like this that provides us with real-time, easy data, provides efficiencies saving us a lot of time.”
Jason Paul, Project Engineer, South Port NZ
Prior to installing Panoramic Power, the infrastructure team had been unable to determine the maximum number of refrigeration storage units that could be brought online safely at any given time. As such, only eighty electrical plugs were available at any time – one per refrigeration storage unit – within two substations dedicated to handling refrigeration reefers for port customers. With real-time visibility of the measured load across the electrical substations in PowerRadar, the infrastructure team realised that the electrical capacity for these substations was being underutilised – adding more plugs to these substations doubled the reefer capacity to 160 without any major or costly upgrades.
Streamlining resources for managing assets
One of the hurdles of the day-to-day operations at the port was the amount of time spent in collecting data from submeters to invoice port customers. Typically, it would take one of the port’s personnel three days every six months to capture the readings from all 51 revenue meters around the port, regardless of the weather conditions. Using PowerRadar, it now takes them only 10 minutes to collect the meter information before it is passed to their finance team for invoicing customers.
With the monitoring of the sewer pump stations at the port using PowerRadar, the infrastructure team now receives real-time alerts on the status of the motors operated at those stations. This has enabled the reallocation of limited resources to other critical assets at the port. One of the benefits of such reallocation was the detection of surface water ingress at the pump stations by the infrastructure team, having compared the measured power draw of the pumps to available rain data. It is now possible for the infrastructure team to track the amount of surface water ingress at each station on days with rainfall and implement any corrective measures.
Effective planning for infrastructure projects
When trying to identify which assets at the port should be prioritised for capital upgrade projects, the infrastructure team relied on the energy consumption data in PowerRadar. This enabled the team, particularly in the design phase, to plan future expansions as well as ongoing maintenance of the existing electrical infrastructure at the port.
An energy audit was completed for one of the large electrical substations being monitored at the port. The findings resulted in the approval of a large capital project for implementing changes to the substation, and switch board running the Cold Stores and an expected payback within one year.
To ensure the reliability of the substations to handle loads within the port’s electrical network, especially during periods of storing a large number of refrigerator containers, the infrastructure team uses the real-time energy dashboard within PowerRadar to track the maximum power demand from the combined substations. If the power draw approaches 1 MW, the team can begin to consider bringing backup generators online or other ways of taking some load off the power grid at the port.
By choosing to implement Panoramic Power across the site, South Port NZ reduced their capital expenditure by US$600,000 and achieved an increase of 80% in container storage days compared to the previous year. In addition, South Port NZ is now able to report on their carbon footprint annually, provide automatic reports on monthly energy use to port users and streamline efforts in identifying areas of high energy usage for investigating ways to lower the peak demand at the port.
Total Utilities is New Zealand’s largest issuer of business-to-business energy procurement tenders, providing energy purchasing services to many household names. With around 500 tenders issued to the market every year, getting favourable terms is crucial. But negotiating energy contracts is so much more than getting a great price. It involves an understanding of the many moving parts.
The variables that influence retail energy prices are:
GEOGRAPHICAL
New Zealand’s population is dispersed over a large land area, creating its own set of challenges.
FINANCIAL
Prices are based on the changing supply and demand through the wholesale spot market.
MARKET-DRIVEN
The market is deregulated, and our national energy supply consists of generators/retailers, the national grid operator and 29 local distribution companies. Energy retailers can hedge future energy on the ASX Energy Futures market.
SOURCE OF ENERGY
New Zealand has a diverse generation fleet, including hydro, geothermal, wind, and coal.
REGULATORY
The Emissions Trading Scheme, Net Zero 2050 and shifting government policy influence generator behaviours.
TIMING
Changes to hydro storage and government policy mean windows of opportunity can be very limited in the energy market.
That’s why engaging independent energy consultants who understand the variables, the available options and when to time procurement events is so worthwhile.
Let’s look at different scenarios where our clients saved significant sums because they had Total Utilities on their side.
TIMING MATTERS Leaving a negotiation too late gives retailers an unfair advantage, as customers have limited options to choose from. A large university’s contract was due to expire, and they were concerned about going to market too soon. They usually would wait until two or three months before expiry to begin researching options. However, we encouraged them to procure their contract with eight months to go. In doing so, they avoided a 36% cost increase and saved over $2 million.
WE ARE LEVERAGING COMPETITIVE TENSION: A national food producer was given a renewal offer from their energy supplier and told that this was the most competitive option in the market.At Total Utilities, though, we understand that retailers don’t always put their best foot forward unless you give them a push. After we went through a competitive tender process, we negotiated a new renewal offer of over $500,000 less than the previous offer.
DOWNGRADING YOUR METER CAN MAKE A DRAMATIC DIFFERENCE An Auckland-based packaging customer was facing a 40% cost increase over three years. Their retailer was only giving them pricing based on their current meter configuration. This is typical in New Zealand because, unlike other countries, there isn’t a fully contestable meter supplier market. Despite being a large commercial customer, they could downgrade their meter because of their connection size. Total Utilities helped with the meter downgrade and negotiated new pricing on their behalf. As a result, they reduced their cost increase by 75% over three years and saved $200,000. The customer couldn’t believe that changing their meter would have such an impact on their new contract prices.
WE ARE ACTING QUICKLY TO HELP CLIENTS IN NEED A Christchurch-based supplier and manufacturer of commercial refrigeration equipment had been out of contract for more than two months. Struggling on their own to get offers for energy supply, they were at risk of costly spot pricing. Spot pricing changes every half hour making it a volatile and expensive route. The customer asked us for help after getting a renewal offer from their current supplier. The trouble was the offer represented a whopping 225% increase over the next 12 months.Within just five days, we presented the customer with our recommendations. We laid out several energy supply options with different retailers. The best option was 150% lower over the first 12 months than the one previous. What’s more, the new contract was backdated over two months. This meant they avoided default spot prices. Overall, the best option was 27% more cost-competitive over the term of the agreement.
The right energy procurement is crucial
Total Utilities are so much more than negotiators. We have a deep and long-term understanding of the energy market and the many factors that influence supply, price, and demand.You don’t have to settle for the first offer on the table. By engaging us, we leverage the right timing and competitive tension to get you the most favourable terms, saving you significant sums of money over the duration of your contract.
Discover how Total Utilities helped New Zealand schools harness real-time energy insights to identify energy waste, explore solar power viability, and drive significant reductions in carbon emissions.
With over 1,500 Panoramic Power sensors installed across 50+ schools, we identified energy wastage and demonstrated the cost-saving potential of solar power. Schools are now making smarter, data-driven decisions to cut costs and reduce emissions.
Learn more about how energy efficiency and solar can drive sustainability in our full case study!
Total Utilities has assisted many clients in making long term immediate savings by identifying power factor issues and providing turnkey services to rectify the problem.
