How Food Logistics Balances Energy Costs with Odot.

Back to all blogs
Scroll

How Food Logistics Balances Energy Costs with Odot

Food Logistics has been a partner to food companies requiring refrigerated, frozen, and ambient food logistics since 1964. The company ensures the efficient and safe storage of food products in a strictly controlled environment, with temperatures ranging from -25 °C to +20 °C.

To ensure this, the facilities operate at full capacity day and night, which means there is a constant high demand for electricity. The result? A heavy reliance on an energy market that has been anything but stable in recent years. “The biggest challenge for us was predictability,” says Food Logistics. “Our energy costs are such a major factor in our operations that we need to be able to estimate them in order to set accurate prices for our customers.

From flexibility to complexity

In the past, Food Logistics always opted for flexibility. Energy contracts were signed on a quarterly basis, which, on the one hand, allowed the company to respond to market conditions, but on the other hand, created a great deal of uncertainty.

At the same time, Food Logistics continues to innovate and adapt to changing energy consumption standards. For example, the roof was recently reinforced and 375 kWp of solar panels were installed to generate its own energy, covering up to 30% of its consumption on sunny days. In addition, the company has invested in a smart EMS system that responds to price fluctuations.

When energy prices are low, the system increases its cooling output. This “cold” is, so to speak, stored, so that less energy is needed later on. It’s an innovative way to use the large refrigeration system as a kind of battery.

But those innovations also brought a new challenge. “Suddenly, we were faced with a combination of fixed demand, variable production, and smart control. We felt that this was becoming too complex for us to make the right decisions on our own,” according to Food Logistics.

The decision to seek external expertise

Although several energy providers proposed managing this as part of their own solutions, it didn’t quite feel right.

We didn’t want a solution dictated by a single vendor. We were looking for someone who could take an objective look at our entire situation.” And they found that in Odot.

What immediately stood out was their approach: no cookie-cutter advice, but a thorough analysis of our specific situation. They ran through various scenarios, compared different contract types, and actively explored the market. “They clearly had the expertise and tools to guide us through this. That gave us confidence,” says Food Logistics.

From variable-rate contracts to a fixed-rate energy provider

In collaboration with Odot, an energy strategy was developed that takes all variables into account: energy consumption, the impact of solar panels, the capabilities of the EMS system, and developments in the energy market.

That led to a clear decision: a partnership with a single, fixed supplier for the next three years. “For us, that was an important step. Not only financially, but also strategically. We can now look ahead, and our energy costs have become a predictable factor rather than a variable cost that could change every quarter.

The foundation for a green future

Thanks to Odot’s advice and support, we at Food Logistics can continue to build on our ambition to become a fully green player within the food logistics chain. Our next steps include plans for green transportation and charging infrastructure, with the ultimate goal of achieving fully carbon-neutral operations by 2030.

“This partnership was an important part of that bigger picture for us,”” concludes Food Logistics.

 

 

Would you like to discover what Odot can do for you?

Anya Kussé
Anya Kussé

As a leading player in the energy market, we unburden companies in their energy policy and develop future-proof energy strategies. Our team of experts negotiates, manages and optimizes our customers' energy contracts in a continuous and transparent manner. Supported by AI-driven software, we provide insight into the current and future cost of each MWh. We integrate sustainability into our overall approach and work pragmatically and solution-oriented to support you in the energy transition. Together, we create the most ideal energy landscape for your business.