1、Procurement Outsourcing Values & Options in BC,June 12th, 2003,2,BC Hydros Business Challenges,Drivers for Change: Changes in Utility Industry Cost pressures Capital Constraints & Risk Mitigation Diminishing returns of Shared Services ModelRestructuring: Prepare for new energy policy Restructure cor
2、e business,3,Outsourcing: Solution to Business Challenges,What Hydro was seeking from Outsourcing: Moving to a new Business Model Emphasis and focus on core activities Economies of scale and specialization Technology Investments and Risk Mitigation Capital Considerations Access to Best Practice Conf
3、ines of utility mindset - culture Must make good business sense (business case),4,BC Hydro Transaction,Guaranteed Savings ($250 Million minimum) Commitment to improving Service Level to 1st Quartile Access to best practices, Accenture expertise and experience Benchmarking and target performance leve
4、ls 10-year contract assumption of union agreements Transfer of management and employees,5,Other Benefits,Leverage the existing shared services skills and talent to more creatively serve the core business Create new opportunities for the staff Maintain service stability during the Utilities organizat
5、ional change and uncertainty Dedicated people with service culture, motivated and rewarded to achieve business objectives Longer term focus on performance and service level achievements,6,Keys to Success,Desire and Climate for change Ability to sell concept (Shareholder, Board) Effective change mana
6、gement Agreement with the Unions Well-planned and executed process Strong Partner,7,Accenture Business Services,Building/Office Services Disbursements Purchasing Financial Systems IT Infrastructure Application Development Business Support Human Resources Customer Services,8,Supply Chain Services,Com
7、prehensive competitive bid process Leverage through large volume spend and multiple customers Purchasing research and market information Contract Administration training Purchasing process training Customs and traffic management Household moves - nationally and provincially Intra Provincial freight
8、services through the use of the BC Hydro MMBU Freight consolidation Warehousing - interim storage of materials,9,Supply Chain Services (contd),Programmes Offered Cell phones Office equipment (includes copiers, faxes, and MFMs) Fuels and lubes Stationery Printing and forms management Courier Long dis
9、tance Purchasing Card Programme,10,Material Management Business Unit (MMBU) of BC Hydro,Annual Sales of $90 million The MMBU is organized along the following functional areas: Material Forecasting, Purchasing and Inventory Management Material Supply and Distribution Material Sales, Refurbishment and
10、 Value Recovery Business Support Services,11,MMBU Operations,Main Distribution Center (MDC) 12 Key Stores 34 Satellite Stores 5 Non-Integrated Stores,13,Products and Services,Forecasting, sourcing and purchasing material Storing, distributing and transporting material and equipment Managing, control
11、ling and checking material inventories Disposing surplus material and equipment Storing and disposing of special waste Recycling and refurbishing material Consulting on materials management and logistics Effective operation and development of Materials Management System Environmental Management of all Material Management facilities & materials,14,Thank You !,
