ISO 50001: OEM Engagement

The release of ISO 50001, the first ISO standard for managing energy use, provides opportunities for engagement in energy management for a wide variety of stakeholders including end users, electric and gas utilities, original equipment manufacturers (OEMs) of energy-using equipment and other suppliers/service providers. This article, focusing on OEMs, is the second in a 3-part series examining the significance of ISO 50001 for utilities, OEMs and industrial supply chains. 

ISO 50001 provides a standard methodology for a wide range of stakeholders—industrial, commercial and institutional—to establish policies and procedures to manage energy and improve energy intensity transparently. OEMs can use ISO 50001, both in their own plants as well as to address the energy efficiency of the products they sell to manufacturers. This can help OEMs add value to their relationships with their customers.

The ISO 50001 Opportunities for OEMs Customer Engagement

Two main opportunities exist for OEMs in conjunction with ISO 50001 that can enhance the value of their relationship with industrial customers. The first is for an OEM to “lead by example” by implementing the standard in their own facilities and following a continuous improvement approach. Doing so not only confers credibility on the OEM for “walking the walk”, but provides important insights that they can pass along to their industrial customers that choose to implement the standard. A number of industrial companies that make products intended for manufacturers have implemented ISO 50001 as part of the Superior Energy Performance (SEP) demonstrations.

One such company, Spirax Sarco, is currently pursuing SEP certification. According to Steve Gow, Spirax Sarco’s Director of Marketing, “By participating in SEP we can demonstrate that we’re trying to improve upon ourselves and share the knowledge we obtain from participating in SEP with our customer base.”

The second type of opportunity for OEMs is to configure the energy-using applications they make for manufacturers for optimal energy efficiency. As manufacturers and other industrial end users seek to improve sustainability, ISO 50001 conformance will be a part of many companies’ sustainability strategy. One of the standard’s requirements is integration of procurement criteria of energy-using equipment having a “significant” impact on energy use into an organization’s energy management plan. In addition, the standard requires notification across the supply chain that energy performance of energy-using equipment will be evaluated. As a result, OEMs may find that their industrial customers will increasingly demand more energy efficient technologies.

Rather than a burden, this creates opportunities for OEMs to innovate and produce more energy efficient technologies that correspond more optimally to customer needs. In many cases, better design and high performance components can significantly improve the energy performance of a new technology or process. In one case, Harland-Clarke (formerly John H. Harland Corporation) worked with the OEM of a new printing machine to reduce that machine’s compressed air requirements. Not only did Harland-Clarke save energy, but it was also able to improve quality and reduce cycle time.

By working with the customers’ process engineers to maximize energy efficiency within the framework of ISO 50001, OEMs can demonstrate their support for best in class solutions for both operational and energy management. This can help OEMs differentiate their products from their competitors’ models and demonstrate their commitment to their customers’ long-term viability.

Engaging OEMs

With ISO 50001, energy management is not simply the purview of industrial end users. Conformance with the standard, whether by OEMs or their customers will involve both groups of stakeholders. OEMs of process and crosscutting industrial technologies have significant potential to influence their customers’ energy use through efficient design and the use of high performance components, which can help their customers reduce costs and conform with ISO 50001, thereby helping those customers demonstrate their commitment to sustainability. By taking a proactive stance, OEMs can leverage ISO 50001 to differentiate their product portfolio and deliver important insights to the customer base.