Procurement Software for Energy & Utilities
The long-term health of the energy & utility industry is increasingly uncertain as indicators point to slowing demand growth, diminishing access to low-cost capital and intensifying competition as distributed generation technologies continue to mature rapidly.
As utility profits experience the squeeze between mandatory investments and flat-to-declining demand growth, controlling operational costs will be a must for maintaining investor confidence and access to capital needed for long-term survival and innovation. CPOs and their teams will contribute increasingly to utilities’ profitability, credit worthiness and long-term business sustainability by:
- Engineering and implementing rapid and transparent procurement processes to gain complete and detailed spending visibility and to set operational savings targets accordingly.
- Creating and maturing comprehensive strategic sourcing, procurement and supply management initiatives that yield industry-competitive bargaining power, steeper volume discounts, more favorable contract terms and conditions and greater risk sharing with suppliers.
- Supporting industry innovation and diversification into new service areas via advanced supplier discovery, development and collaboration
Energy & Utilities Industry Challenges
There are potential “game changers” to the energy & utility industry.
And while the timing is not entirely clear, imminent game changers for the energy & utility industry include:.
- Rapid technological advances and cost declines in distributed generation, creating competition for demand and forcing utilities to spread investment and operational costs over shrinking customer bases.
- Both intended and unintended consequences of government policies, tax incentives, subsidies and so forth promoting energy conservation, demand reduction, net-metering mandates and so forth.
- Intensifying and complex environmental regulation affecting generation plus ongoing requirements for maintaining and modernizing existing power grids, mandating utility investment regardless of potentially weakening demand growth.
- Trends in related markets, such as proliferation of electric-powered vehicles and related new infrastructure needs, which may present new market opportunities for utilities that can sustain both profitability and access to credit amidst competitive and challenging industry conditions.
How We Can Help
Our next-generation source-to-pay procurement suite can streamline your sourcing, procurement and supply management functions and enable you to develop clearly prioritized strategic and operational road-maps for managing your company through a critical industry transition.
Your team will gain comprehensive visibility across up- and downstream procurement, contracting and supplier management activities within a robust, secure, fully customizable and paperless platform.
- Use SPEND ANALYSIS to gain timely, accurate, complete and detailed visibility into spending. Analyze spending trends in context of real-time global commodity market intelligence and identify new opportunities for pursuing volume leverage, supply-base optimization, favorable commercial terms, internal spend standardization and consumption management and other operational efficiencies. Read More
- Utilize our intelligent STRATEGIC SOURCING to model Total Cost of Ownership (TCO), incorporating customer needs, organizational goals and market conditions to obtain goods and services at best market value and to always make sourcing decisions using rigorous, fact-based and collaborative analysis. Read More
- Use our automated and intelligent CONTRACT MANAGEMENT solution to minimize risk and meet statutory requirements with ease. Empower your procurement teams to manage supplier contracts effectively and efficiently across contract lifecycles and to measure and drive internal compliance to preferred contracts. Read More
- Use our SUPPLIER MANAGEMENT solution to design and deploy credible supplier performance metrics, increase internal and external participation in SPM processes, add transparency to strategic sourcing decisions and drive continuous improvement in supplier performance. Easy access to both objective and subjective data inputs from stakeholders helps you to examine supplier relationships across your entire organization in real time. Read More
- Use our FINANCIAL SAVINGS MANAGEMENT solution to track and drive procurement’s organizational performance on cost savings and other metrics. Support market analyst, investor relations and finance functions by enhancing forcasting, budgeting and other processes and enabling hard cost savings to be credibly quantified, tracked and allocated both to budgets and key enterprise financial metrics. Read More
- Use PROCURE-TO-PAY to monitor and manage compliance to preferred strategic contracts, budgets and active consumption and expense management initiatives. Improve productivity and cut operating costs by reducing process cycle times and going paperless from requisition through to invoicing, payment, transaction classification and back office accounting. Read More