Feralloy Corporation Reaps Cost Savings Through FMA's Affinity Partnership with APPI

Chicago-based Feralloy Corporation, an Advantage member of the Fabricators & Manufacturers Association, International (FMA), and one of the country’s largest high-volume steel processing companies, was able to reap significant cost savings through FMA’s affinity partnership with Affiliated Power Purchasers International (APPI).

In June 2004, Feralloy contacted APPI, an independent utility consulting company, to learn more about how the FMA Savings Solutions Program could reduce the company’s operating costs.With six locations throughout the U.S., Feralloy recognized the potential for savings through APPI’s programs.

APPI, an independent consulting firm based in Salisbury, Md., assists FMA members by identifying opportunities to reduce electricity, natural gas, water, waste management and telecommunications costs.

Although the Feralloy controller initiated some preliminary auditing of its utility services internally, the company did not have a dedicated staff person with the time to explore the plethora of available utility options and pricing. To address the issue,

Feralloy sought a simple and cost-effective solution that would provide up-to-theminute utility expertise and identify potential savings areas. Feralloy determined that APPI’s Savings Solutions audit would be an efficient and effective way to identify possible options. Feralloy gathered recent bills from each participating location to get the audit process started.

$80,000 Refund, Just the Beginning

APPI’s experts thoroughly reviewed the information and identified several opportunities for refunds and savings. The research took two months to complete and included conversations with the various utilities serving the different facilities and discussions with Ferralloy’s financial and operations personnel. The initial audit found a refund in excess of $80,000. Further research produced additional savings. “We are experts in steel processing; that is our core business,” said Jack Love, CFO for Feralloy. “Although we are very smart about our buying decisions, sometimes we need input from other experts. Spending the time necessary to find savings was worth every minute, and I would recommend the APPI Savings Solutions Program to other FMA members.”

About The APPI Audit Process

The APPI audit of electricity, natural gas, water, waste management, freight, check processing, credit card processing, and telecommunications services is an FMA and TPA member benefit. It will:

• Identify incorrect fees, billing errors, and overpayments.
• Analyze rate structures and tariffs for savings opportunities.
• Correct billing errors, and adjust bills moving forward for immediate savings.
• Secure refunds on monies due from billing errors or incorrect rate structures.
• Evaluate alternate service providers and program options that reduce the cost of service.
• Monitor your accounts to assure billing integrity and savings.

The process is risk free -- there are no upfront expenditures, hourly fees, or retainers. APPI is compensated only when it demonstrates and delivers savings to the business. There is no obligation until a company decides to implement APPI’s audit recommendations. Call member services at 888-394-4362 to start your audit process.