Our Purchasing Process

Alagasco has adopted a process called Strategic Sourcing to purchase all of our goods and services. We want to communicate consistently and openly with current and potential suppliers who play a key role in this process. The following information is provided to all suppliers. Any questions that you have after reviewing this information may be submitted via the following method:

Email: Steve Murphy, Director of Strategic Sourcing, steve.murphy@energen.com

US Mail: Alagasco, ATTN: Steve Murphy, 605 Richard Arrington, Jr. Boulevard North, Birmingham, Alabama 35203-2707.

What is important to Alagasco?
The sourcing efforts will focus on getting the best value for the goods and services we purchase.  Value includes price, quality, customer service and other category specific selection criteria.

How will I do business with Alagasco?
As a current or potential supplier to Alagasco, you will be notified when the product/service in your category area is being evaluated.  You will have the opportunity to submit competitive quotes/proposals at that time.

Who should I contact regarding my existing relationship with Alagasco?
Refer all questions regarding current activities to your current Alagasco Strategic Sourcing contact.

How does the Request for Proposal (RFP) work?
The RFP is fair and objective.  This is an opportunity for both existing suppliers and new suppliers to compete for Alagasco business.  You will receive complete instructions when the RFP is ready.

Is the value added that I bring to the table going to be considered?
Absolutely it will, as long as there is true value added to Alagasco. It is important for each supplier to clearly understand and identify how they add value to Alagasco. Since measurement of results is, and will continue to be, an ongoing process it is important that suppliers be able to quantify wherever possible their value added.

Does Strategic Sourcing make it easy to do business with Alagasco?
Once a supplier is qualified in our system, it will be easier for Alagasco to order commodities/services from that supplier. For the supplier, it will be easier to submit invoices to receive payment for such commodities/services.

Will my long standing relationship with Alagasco be considered?
That will be considered, along with performance measures such as delivery, pricing, and quality. Supplier selection will include a variety of criteria which will include the ability to work with Alagasco on a long term relationship basis.

Is Strategic Sourcing a way to drive down the price Alagasco pays for commodities and services?
As a public service company, Alagasco must provide the most cost effective service to its customers. Alagasco must therefore ensure that we are receiving the best value from all our suppliers, which includes quality, delivery and pricing.

If I've been doing business with one Alagasco division/district for many years, will I lose out to a larger supplier who services more Alagasco locations?
All suppliers will compete for Alagasco business, so small suppliers will be able to compete with larger suppliers by servicing more Alagasco locations.

Why should I be a supplier?
Alagasco’s position within the Alabama economic and business community is extremely bright and is growing every day.  Your position within this community can only be strengthened as your business grows with Alagasco. As we grow our valued supplier partners can be expected to grow as well.  Some of the benefits of working with us include:

• Opportunity to continue doing business with Alagasco
• Reduced cost of doing business with Alagasco
• Increased business with Alagasco due to consolidation of spend
• Better working relationship and communication with Alagasco Strategic Sourcing staff