【正文】 iving Manager Receives the product and delivers to employee AutoSourcing Routine Picks up the request, checks the inventory, creates and sends a PO to the vendor electronically Vendor Receives the PO and ships the order to the pany Receipts Settlement Upon receipt, the system automatically matches receipt with the PO and payment is made electronically. An asset record is automatically established based on the pany?s accounting rules Delivery Employee receives product This example is taken from PeopleSoft’s purchasing module 20 169。 2000 Arthur Andersen All rights reserved. Performance Management what gets measured gets done 23 169。 Growth How do we get better at improving? 25 169。P electric utility index ? Estimated cash position ? Current financing program ? Consolidated capital budget status ? Reporting of these measures is supported by analysis so that the management can clearly understand the drivers of good or poor performance, and take immediate action if required. Energy Company A a publicly traded diversified energy pany distributing 62 billion kWh of electricity to million customers, and with more than $6 billion in annual revenues. 27 169。 2000 Arthur Andersen All rights reserved. The key challenge is to determine the optimal solution for your business ERP Solutions Pros ? Connectivity/high integration ? Standardizes work ? Robust long term sustainable solution ? Well used almost all utilities utilise an ERP system why are we different? Cons ? Generally costly ? “One size fits all” flexibility? customisation can create problems ? Potentially higher cost ? Mandates this be a Whole of Business project ? Time to Implement (wider scope) ? Greater resourcing required “ Best of Breed” Solutions Pros ? Specific purpose usually for industry, or for specific function ? More functionality ? Little customisation required ? Potentially less expensive faster to implement ? Less drain on resources ? Does not mandate Whole of Business approach Cons ? Integration with other systems required not always successful ? Question if existing systems can deliver functional requirements ? Sustainability how long will this option last ? Everyone else is ERP?ing The decision on which technology solution (or solutions) to use requires a fundamental understanding of the business?s future needs, and the determination of the technology requirements to meet these needs 31 169。E (Pacific Gas and Electric) 85 TXU (Texas Utilities) 146 AEP (American Electric Power) 164 Edison International 166 Xcel Energy 187 Entergy Position Company Name 197 Consolidated Edison 211 CMS Energy 228 Cynergy 259 Sempra Energy 266 First Energy 76 Southern Company 82 PGamp。 2000 Arthur Andersen All rights reserved. Andersen?s proprietary Global Best Practices is a a repository of the Firm?s best practice assessments across multiple industries 37 169。 2000 Arthur Andersen All rights reserved. Reduce budget plexity and cycle time. Companies that streamline the mechanics of budgeting develop budgets in a shorter time, at lower cost, with less disruption to their core, valueadding activities, with no sacrifice in budget quality. Streamlining efforts make it possible to shorten the budget development cycle. A shorter budget cycle saves costs, not only in the finance department but in every business unit that develops a budget. Another benefit of streamlining budgeting is that finance department employees are freed from the need to reconcile inconsistent procedures or inpatible software. This allows them to take on other roles in the larger organization, including financial analysis, training, and support for decision making. Develop budgets that acmodate change. By developing budgets that acmodate change, panies benefit in several important ways. Their business units or divisions can respond to changing business conditions more quickly and with greater precision, limiting any negative impact on the pany39。 2000 Arthur Andersen All rights reserved. Best Practice Rationale Select core cash management banking partners. Service has replaced price as the determining factor for selecting a cash management bank. Since many of today39。 foreign exchange and hedging strategy and shortterm investment strategy. Review cash management system regularly. The cash management or treasury review evaluates how well the cash management system is performing. These reviews may b。 amount of funds needed pany39。s longrange goals are still achievable. In the budget development process, knowing that the budget can acmodate change frees managers from the need to pad their budgets to cover unforeseeable developments. Best Practice Rationale Develop Budgets 40 169。 2000 Arthur Andersen All rights reserved. Best Practice Rationale Link budget development to corporate strategy. Linking budget development to corporate strategy plays a key role in building support for strategy. The budget expresses in concrete terms how resources will be allocated and how progress will be measured. By developing and then operating within budgets linked to corporate strategy, managers at every level understand how their daytoday efforts move the pany toward its goals. This understanding leads to better coordination of tactics, better feedback about both obstacles and opportunities, and, ultimately, better performance. Design procedures that allocate resources strategically. Since any pany39。 2000 Arthur Andersen All rights reserved. Contents Section A. Defining Best Practice B. Illustrative Best Practices Appendices I Fortune 500 Companies II Andersen Global Best Practices Manage Financial Resources Manage Procurement Manage Human Resources 35 169。 2000 Arthur Andersen