NOTES FROM THE ROAD: Jim Neikirk Shares Key Learnings Gathered in Recent Customer Visits. Steve Newland and I have met with the supply chain leaders at about 20 utilities over the past three months, and we’re not through yet. We have begun what will be a never-ending mission to understand your concerns and challenges and then match our capabilities with your needs to help you to solve business problems. Here’s what we’ve learned so far about the critical issues facing utility supply chain organizations and how these organizations are responding to the challenges: It’s an EPS Conversation. It’s no secret that utilities are under tremendous pressure to lower costs in order to improve earnings per share. Customers we talked to cited numerous factors that drive the focus on bottom line improvement, including market conditions, industry consolidation, customer expectations and credit ratings. Supply Chain Can be a Hero. Our customers share the growing realization that supply chain excellence can make a material impact on a company’s share price. Perhaps more than ever, supply chain organizations can help a company quickly reduce costs and improve the bottom line while delivering value to internal customers. The tools and technologies to support supply chain excellence have never been better, and the mandate for improvement has never been more compelling. Supply Chain Improvement Equals “Easy Money.” We heard this comment from the CFO at one of our major utility customers. He highlighted that supply chain improvement is preferable to many other means of cost reduction, such as laying off staff, putting projects on hold or canceling projects altogether. Automating Routine Transactions is Fundamental. Most supply chain executives told us that automating routine transactions is an important first step toward excellence. Automation frees up purchasing professionals to deliver the strategic value demanded by customers and shareholders. Do More with Less. Most supply chain organizations today are being asked to deliver more value with smaller budgets and fewer people. Customers told us they are being asked to “practice what they preach” and become more efficient and effective with fewer resources. Suppliers are Key. Our utility customers confirmed a belief that I’ve long held—increased supplier participation in the Pantellos Marketplace is critical to our collective success with e-procurement. Moving forward, Pantellos will need to focus more attention on this important area, working closely with buyers and suppliers to enable more connections and transactions through the Marketplace. Execution is Everything. Customers have found that even the best systems and tools can fail to provide the desired results without a defined, well-executed implementation plan. Change management programs—including communication, training, incentives and rewards, and compliance monitoring—are essential to ensure that new processes, tools and technologies deliver the expected results and provide a rapid return on investment. The Status Quo is Not an Option. Many supply chain leaders we talked with recognize that moving forward and continuing to improve is the only option. CEOs, CFOs, corporate boards and Wall Street simply require it. One customer expressed this sense of urgency best when she said, “We cannot stay here.” Pantellos is Under New Management. Pantellos stands ready to help meet these challenges, whether customers need specialized tools and expertise to complement their existing capabilities, or dedicated resources to identify improvement opportunities and carry out supply chain plans. Every one of our services was designed to meet a known customer need, and our continuing dialog with you will enable Pantellos to offer innovative solutions that deliver results through proven methodology, industry expertise and implementation support. Results Count. In a nutshell, what we heard from utility customers is that supply chain organizations are under continual pressure to deliver savings that improve overall business results. Our customers are responding to this challenge with a variety of supply chain tools, technologies and practices that save time and money while increasing the value of supply chain within the enterprise. I am encouraged by the conversations we’ve had so far. The customers we are working with closely have indicated a desire to do more. Others want to re-engage with Pantellos as a partner to help tackle their supply chain challenges. Through these conversations, I have learned a tremendous amount about how we can work together to achieve success. I look forward to hearing more from you and I cannot wait to get back out on the road. Go back