【正文】 All rights reserved. We observe a number of mon ?symptoms? of poor supply chain performance ? No purchasing strategy at Corporate, Group, Divisional or Business Unit levels ? The business is unable to best leverage the bined buying power of the organisation with suppliers ? There is a lack of visibility and detail on expenditure ? There are few controls on procurement with maverick buying habits ? There is a lack of coordinated approach with other functions ….such as engineering, plant maintenance, field services ? Excessive inventories, and obsolete or redundant stock ? There is a lack of controls with no or limited visibility of the true inventory levels What is wrong with your Supply Chain Management? ? Lost or unaccountable inventory ? Shortages causing plant or work downtime or expensive emergency actions ? Low efficiency and performance throughout the end to end process (purchasing staff spend a significant portion of their time performing administrative tasks) ? High total cost base and unsure where savings are best sought ? Unclear improvement strategy and focus areas ? Antiquated purchasing systems ? Manual purchasing processes ? Excessive numbers of suppliers (which drives excessive processing requirements) ? Companies not focussed on effectively managing planning, suppliers, materials storage and distribution exhibit a number of the following problems 19 169。 2000 Arthur Andersen All rights reserved. Utility panies are forming “open” marketplaces where registered buyers and suppliers e together in a virtual environment saving both time and processing cost ? Pantellos is an open marketplace, founded in March 2000, when 21 of the leading utility panies in North America came together to explore the viability of an online trading munity. Founding investors include FirstEnergy, Duke Energy, Edison International, American Electric Power, Entergy, PGamp。 2000 Arthur Andersen All rights reserved. Power panies are outsourcing certain areas of their supply chain, recognising that other “third” parties are more specialized and capable of running these parts of the business ? This major US power pany has outsourced its entire inventory function in part of its operations ? The Company has entered into an arrangement for a third party to own all of the inventory with the third party delivering the inventory as needed to the specific job sites as requested this contractual arrangement defines service levels required (ontime delivery, damaged goods etc), and performance is measured monthly. Procurement Sourcing Purchasing Inventory and Warehousing Logistcs Co. Utility Co. Energy Company B a publicly traded diversified energy pany serving 12 US states with revenues of more than $11 billion annually. 22 169。 2000 Arthur Andersen All rights reserved. Create a small, balanced family of measures that address cost, quality, and timeliness across the organization, its processes, and its people ? Best Companies select a small number of measures to track at all levels of the organization. ? These few measures focus attention on the key drivers of the business that, if managed properly, lead to superior organizational performance. ? When too many measures are used, the message of what39。 2000 Arthur Andersen All rights reserved. What is a Balanced Scorecard? ? The Balanced Scorecard encourages organisations to recognise that traditional financial measures are not sufficient for strategic enterprise analysis ? It uses financial and nonfinancial measures to report on the oute of past performances as well as to provide an indication of future performance ? To achieve “balance”, the methodology remends assessment of four perspectives: Financial How do we look against the financial objectives of our owners? Internal Process What must we excel at for our customers? Customer How do we look to the customers that we want to attract? Learning amp。 2000 Arthur Andersen All rights reserved. This leading utility uses a balanced scorecard approach to measuring business performance Energy Company B a publicly traded diversified energy pany serving 12 US states with revenues of more than $11 billion annually. Financial How do we look against the financial objectives of our owners? Internal Process What must we excel at for our customers? Customer How do we look to the customers that we want to attract? Learning amp。 2000 Arthur Andersen All rights reserved. Another leading utility uses Shareholder Value Added (SVA) principles to monitor its performance at the management level, and more macro financial measures at the Board level The following items are reviewed by senior management on a monthly basis: ? EPS variance ? Net ine variance ? Summarized consolidated ine statement ? Shareholder value added ? SVA preliminary results by major value center (ie. business unit) ? Generation KWH sales ? Distribution KWH deliveries ? Gross margin petitive business unit ? Expense variance ? Cash flow The following items are reviewed by the Board of Directors on a monthly basis: ? Earnings and dividends ? Consolidated ine and earnings ? Consolidated revenues and sales ? Capitalization ratios ? Common stock market to book value ? Common stock price range ? Common stock market price ratio of the pany to the Samp。 2000 Arthur Andersen All rights reserved. Performance management is supported by technology applications that allow management to view the business using a “control panel” of measures and analysis Overall performance is easily understood Trends in specific measures are easily analyzed Each part of the balanced scorecard is summarised RED indicates poor performance 28 169。 2000 Arthur Andersen All rights reserved. Leading utilities are empl