Site Controls Energy Management System How Big 5’s Financial Analyses Prove Siemens EMS to be a Smart Investment. Answers for infrastructure. A proven system for retail chains Developed for multi-site chains, Siemens Site Controls can deliver considerable energy savings for large and small retail companies. There are roughly 900,000 retail stores across the U.S., and collectively, they make up the largest commercial consumers of electricity. Couple this with rising energy costs and a stagnant economy, and it becomes evident retailers need a solution to curb energy consumption. To get the energy savings they want, chain store operators have started looking to Siemens for the solution. Siemens developed Site Controls™ Energy Management System (EMS) to substantially reduce energy costs for large and small retail chains. Designed for multi-site chains with over 100 locations, Site Controls is a Web-based solution that can cut costs by 15 to 30% across an enterprise. It allows corporate offices to manage their stores with minimal administrative overhead. In fact, it’s proven to be a smart investment for many restaurants, banks and Fortune 500 companies. Starting in early 2010, Tom Robershaw, Assistant Treasurer of Big 5® Sporting Goods, began assessing the financial benefits of adopting Site Controls into a handful of stores. Big 5 is located primarily in the Southwest region of the U.S., and it currently has over 400 locations nationwide, with stores averaging 11,000 square feet. Growth projections are around 10 to 15 new stores a year, so it’s critical to Big 5 that it can regulate energy consumption across the company. Site Controls gives operators real-time intelligence into condition of sites and key equipment. Challenge Energy is a controllable expense, but controlling it is not always simple. Because store managers must focus on operational aspects such as scheduling, customer requests and promotional activities, seemingly simple tasks like overseeing temperature and ensuring signage illumination can easily be overlooked. When analyzing the electricity use of Big 5 stores across the chain, Robershaw found performance differences from store to store. In fact, there were several stores he dubbed “outliers” due to having the highest kilowatt-hours per square-foot usage. And it was unclear why these outliers were using more energy than their peers. Therefore, Robershaw had to ask how Big 5 could reduce energy consumption on a company-wide scale, and more importantly, how it could do this cost effectively. Retrofitting lighting systems and upgrading HVAC units was one possible answer to the questions, but with the number of stores in the chain, this did not prove to be the most cost-effective solution. As Robershaw notes, it’s hard to know the exact savings that retrofitting and upgrade projects deliver. Therefore, it needed an EMS that could provide trend data, historical comparisons as well as real-time information. Quantifiable data is integral to Robershaw and the decisions he makes. He states, “Being in finance, we’re really focused on the return on investment (ROI), and trying to get a quick payback on our investment of capital expenditures and investment in technology.” Siemens proactive enterprise-based management vs. traditional approaches +10 +5 Uncontrolled Load Growth of 1% - 2% +0 Annual kWh percentage change vs. baseline Set it and forget it (typical approach) -5 -10 Alarm-based ”reactive” mgt. Since partnering with Siemens and implementing Site Controls in 2010, Big 5 has been seeing notable energy savings. As of 2012, Big 5 is finding an average energy savings of 15% across the company. -15 Siemens Site Controls Enterprise-based Proactive mgt. -20 -25 -30 Year 1 Year 2 Solution In January 2010, after reviewing several EMS options, Big 5 chose to work with Siemens. Given Siemens reputation and proven success with their clientele, Big 5 found Site Controls to be the most sensible solution. More importantly, it made the most financial sense. Robershaw notes that Big 5 first implemented Site Controls in three “outlier” stores in California, where energy costs are considerably higher than other areas of the country. Nine months later, Big 5 rolled out Site Controls to another 10 stores. Because of the financial and operational benefits proven by Site Controls, Big 5 will continue to use the system in all of their new stores. Since new stores require new HVAC and lighting systems that can be controlled and monitored, it only makes sense to ensure they all function efficiently from the start. By expanding Site Controls into a range of stores, Big 5’s decision makers gain centralized control. And even though there are temperature and lighting setpoints for the chain, individual stores can provide personal input when necessary. Year 3 With regard to existing locations, Robershaw states the plan is to institute Site Controls into “outlier” stores in each district. He explains that because every district has one or two stores that are inexplicably using more electricity than others, Big 5 will implement Site Controls to understand what’s going on and bring those stores in line with the rest of the chain. Results Since partnering with Siemens and implementing Site Controls in 2010, Big 5 has been seeing notable energy savings. As of 2012, Big 5 is finding an average energy savings of 15% across the company. Today, Big 5 stores with Site Controls are operating efficiently. An advantage the system offers is that it eliminates tedious functions from a manager’s day-to-day tasks, letting him or her focus on the customer experience instead. He or she no longer needs to be concerned about lighting levels, temperature setpoints or signage illumination. Having centralized control means Big 5 improves operational efficiency throughout their stores. Robershaw proudly states one of the beauties of EMS is that “it takes out the human element.” He adds, “With EMS, we can control for all of those factors.” “We selected Site Controls because [Siemens] had a good retail clientele that they had worked with before. And we liked the folks and the pricing.” — Tom Robershaw, Assistant Treasurer Big 5 Sporting Goods Adopting Site Controls has made it easier for Big 5 to calculate payback when investing in capital expenditures. So if lighting and HVAC retrofits and upgrades are made to a store, Big 5 can look at that store’s energy usage leading up to the introduction of the new technology and immediately thereafter. Robershaw notes that he can simply pull up a graph, look at before & after energy usage and quantify if his payback assumptions were realistic. Speaking on this benefit of Site Controls, Robershaw says, “We can really just focus on the ROI of the new technology we put in there.” Improved awareness and better line of sight have also had a financial impact. Using Site Controls, Big 5 now has the ability to respond to minor issues before they escalate into bigger problems. For instance, decision makers can access real-time information about the performance of a rooftop unit in a particular location, and if anything about the unit’s performance raises concerns, they can act immediately. Site Controls has allowed Big 5 to be more proactive on facility maintenance throughout the company, leading to greater cost savings. And Siemens will continue to ensure efficiency and savings for Big 5. Siemens conducts monthly calls regarding key performance indicators (KPIs). Through these KPI consultations, Siemens makes sure Big 5 stores are operating along the company’s expectations. Of this aspect of customer service, Robershaw states it helps Big 5 “stay focused on maintaining the originally anticipated benefits and identifying any new problems or opportunities.” Big 5, like most large chains, finds energy to be among its biggest expenses. And like most large chains, it has districts with some stores using more energy than others. That’s why it uses Site Controls to resolve problems. As a result, Big 5 can bring their stores in line with corporate standards, all while saving energy and maintaining customer satisfaction. Highlights ■■ Can cut energy costs by 15 to 30% across an enterprise. ■■ Centralized control eliminates tedious day-to-day tasks for store managers. ■■ Makes it easier to identify and respond to problems with HVAC and lighting. ■■ Continued support from Siemens ensures each store’s energy use is aligned with company expectations. Siemens Industry Inc. Infrastructure & Cities Sector Building Technologies Division Retail & Commercial Systems 9225 Bee Cave Road Bldg. B, Ste. 100 Austin, TX 78733 Office: (512) 306-9400 Fax: (512) 421-6624 The information in this document contains general descriptions of technical options available, which do not always have to be present in individual cases. The required features should therefore be specified in each individual case at the time of closing the contract. © 2012 Siemens Industry, Inc. • (9/2012) Part #118-4219 P10 Answers for infrastructure. Our world is undergoing changes that force us to think in new ways: demographic change, urbanization, global warming, and resource shortages. Maximum efficiency has top priority – and not only where energy is concerned. In addition, we need to increase comfort for the well-being of users. Also, our need for safety and security is constantly www.usa.siemens.com/rcs growing. For our customers, success is defined by how well they manage these challenges. Siemens has the answers. “We are the preferred partner for energy-efficient, safe, and secure buildings and infrastructure.”
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