Benchmark Brazilian energy company
A Brazilian energy company requested Mazars/Berenschot to execute a benchmark study about the way comparable companies were handling their contract adjustments with installation companies.
The problem was that despite the application of a parametrical formula, the contract adjustment did not cover the rapid growth of operational costs. As a consequence, some of the small specialized installation companies went bankrupt. As these companies were not easy to replace, the energy company was confronted by a sudden lack of operating capacity. Hence, the management requested insights on how other companies were dealing with this issue.
The benchmark was performed within ten companies in comparable sectors. One of the conclusions from the benchmark was that shorter contract duration, with short term adjustments possibilities, created higher satisfaction amongst the installation companies. Furthermore, the benchmark study provided new specific ideas on how to improve contract adjustments with installation companies.