Going Green: Finding Value in Managing Your Company's Surplus Asset Stream. Puget Sound Energy Edward Wilson Supervisor, Material Purchasing

Transcription

1 Going Green: Finding Value in Managing Your Company's Surplus Asset Stream Puget Sound Energy Edward Wilson Supervisor, Material Purchasing Pacific Exchange Group Recoveryseeker.com Jessica Jackson, President and CEO Erik Karloski, Chief Information Officer

2 Puget Sound Energy Edward Wilson Supervisor Material Purchasing Pacific Exchange Group Recoveryseeker.com Erik Karloski, Chief Information Officer Jessica Jackson, President and CEO 2

3 Puget Sound Energy at a Glance Pacific Exchange Group at a Glance Supply Chain - Involvement Need Customer Request (Clean my Yard) Like Kind Exchange (1031 Exchange) Expanding the Scope Formalizing the Process Getting the Corporation Onboard Managing Projects and Assets Project Tracking Tool Resource Staff Asset Catalog overview Asset marketing Redeployment Bid Packages Live Auctions Virtual Warehouse A-Team Support E-track Financial/Operational performance Reporting 3

4 Largest Utility in WA state 1 million Electric, 710K Gas Customers Over 100 years old $2 billion plus in electric revenue $1 billion plus in gas revenue We are constantly building 4

5 Leading Service Provider in Asset Recovery for more than 12 years, Pacific Exchange has provided a broad and deep portfolio of innovative products, technologies and services that makes us the leading service provider and supplier in asset recovery. It starts with a mission. Pacific Exchange has been motivated by the belief that custom designed products/programs that meet a Companies specific needs far exceeds any benefits offered by suppliers that force a Companies operations to work within the contained environment of off the shelf or pre-programmed products. We have proven time and again that a one size fits all Company solution is a recipe for failure. All Companies and Industries are different. We help improve operational goals by optimizing efficiency, cost and implementation time while eliminating the need for costly updates. The solutions we pioneer enable Companies to meet their operational objectives while often providing for substantial environmental (Green), Compliance and Economical solutions embedded within many of our product and services. 5

6 Knowing and Understanding Definitions What truly defines Surplus and/or an Asset? What we thought it was to what is potential is and can be! Example: Substation yard full of Oil filled PCB contaminated equipment. Problem- no one really knew of to properly get rid of it, while still maintain compliance and disposing of in a green manner. Realization-Existing Supplier/Surplus Company wanted High Value Equipment only. 6

7 Do you know ultimately where you assets end up and if the transfer of ownership and risk has happened? Why You Need to Manage Surplus 7

8 Effective and financially responsible way to track, manage and sell surplus Dedicated team for fleet-wide scrap management Pre planning with a planning tool so informed decision are made prior to selecting a contractor for projects Assessment Process and asset valuation support to ensure best marketing plan for asset sales Environmental Responsibility and Risk Mitigation Transfer of ownership INCLUDED: Redeployment solution Marketing solution Robust reporting solution to track performance 8

9 Supplier originally pioneered 1031 Exchange for Surplus Assets. Offered to stretch and manage entire Surplus asset program including other suppliers. Help recognize Internal resources were disjointed and only assigned Surplus as a collateral duty. Help bridge the gap between internal stakeholders and eliminate wastes streams in processes 9

10 Process Development Tools and Templates Policies and Procedures Training Change management Vendor and Vendor Performance Management 10

11 Recovery Seeker created the Program based on needs identified by PSE and recognized by Pacific Exchange Group Purchasing worked with Internal stakeholders, culminating in Corporate Policy Manual These internal stakeholders were: Environmental Operations in all different business areas Legal Employee Relations Corporate Tax Corporate Accounting Compliance Realized after the fact, that you should never assume you have the only stake in the game. 11

12 What Jessica Made Us do! 12

13 How many of you know today who your internal stakeholders are when it comes to the disposition of your assets or materials from your company? 13

14 Online inventory control and asset tracking. Automated RFP bid process. Asset Redeployment (internally). Live online auctions. Virtual Warehouse. Exposure to Global Buyers. Mobile integration with smart phones. The ability to track accounting of the asset and integrate with existing accounting packages i.e. JDE, SAP, Maximo. Automated Reporting. 14

15 What do you think of, see or define an Asset Revenue Stream? Something that makes money. A controller process that mitigates risk, enforces compliance and can provide another income stream? A name of a waterway in Montana. 15

16 Step 1: Assets are identified Step 2: Assets are listed for Redeployment for a determined period of time Step 3: Assets not redeployed are marketed Via: RFP - Virtual Warehouse - or Web-Auction 16

17 What does it mean to be green? I don't know, I would have to ask Kermit the Frog. To adopt principles, policies, and practices that will improve the quality of life for your company, customers, employees, communities, and the environment. Reduce the use of consumables in daily operations 17

18 This is the GREEN part!! Reduce Reuse Recycle And. Get Paid 18

19 This is the GREEN part!! Reduce Reuse Recycle And. 19

20 By utilizing the service Pacific Exchange Group provides and product Recovery Seeker, Puget Sound Energy is able to have one centralized asset catalog. In a few easy steps, PSE can now load and asset and send to market. 20

21 Redeployment: PSE s assets are internally marketed before offering them for sale to the public. Corporate Redeployment processes can be integrated into the Recovery Seeker system to include: VIEWING, ASSET REQUESTS, INTERNAL TRANSFERS, ACCOUNTING Each step is tracked and documented for future review, Audits and reporting 21

22 PSE s bid packages are a fast, easy way to allow us to invite prospective buyers to our assets and we are able to have a singular location of our contact list to bid on your asset. Bid packages also provide a direct way to for PSE to target market assets in a private invite only venue. 22

23 PSE s Virtual Warehouse is typically the beginning of what is an online event. Today, PSE lists an asset in our Virtual Warehouse, and notification are then sent to our approved or depending on the asset type, approved buyers/vendors. PSE is able to have listings on other multi-media venues that are utilized in order to gain maximum exposure to our assets. 23

24 PSE s web auctions are a great way to market our assets that need to move quickly. By PSE using our Live auction platform, it allowed us to manage our auction items by having the ability to: Setting a reserve price Setting the opening or starting bid price Setting the duration of the auction based on your needs Using a flat price Buy Now auction Manage the Proxy Bid Increments View complete Bid History Answer questions from buyers through our private messaging system 24

25 PSE s has one centralized location for scrap metal management. Location Based Scrap Service Requests, Bulk Data Uploading / Management, Automatic Material Separation & Grouping, Invoicing, Feature Rich Reporting 25

26 PSE has the ability to have and provided customized real-time reporting that can be exported in many formats to suit to internal stakeholders and customers. We can create reports by selecting the report type, entering a start date and optional end date and clicking create report. 26

27 Moving forward: E-Track PSE is looking to utilize E- Track moving into This will help us locate, buy and sell critical Spares. This will allow PSE to access critical spares across North America, and allowing to be in control of sourcing spares from a wide network of Equipment. This will help us quickly locate the equipment you need, help reduce surplus stock and identify replacements for no longer manufactured items. 27

28 How did we get people on board? Policy manual defining the responsibilities, accounting, and procedures Early Wins (Aux Boiler) Referencing Champions (Substation cleanup) Repetition 28

29 Lessons Learned Opposition comes from unexpected sources (talk to everyone) Get the executive support documented Don t accept undocumented assertions Don t assume your suppliers are always looking out for your best interest 29

30 Results Tax Dept. Happy (higher deferrals) Customer Happy (safer cleaner yard) Projects Happy (scrap is a credit not a expense) Capital Accounting Happy (money flows are correct) Environmental Satisfied (we did not cause the end of the world) Company bottom line increased by +$2.5million first year. 30

31 Contact Information: Edward Wilson Material Purchasing Manager- Puget Sound Energy Jessica Jackson President and CEO of Pacific Exchange Group & Recovery Seeker, Inc. Direct: Erik Karloski Chief Information Officer of Pacific Exchange Group & Recovery Seeker, Inc. Direct:

32 Evaluation How-to: Why? Your feedback drives SIG Event content By signing and submitting your evaluation, you are automatically entered into a prize drawing How? Option 1: App 1. Select Schedule 2. Select Schedule by Day 3. Select Day 4. Select Session 5. Scroll to Description 6. Click on the Evaluation link Option 2: Browser 1. Go to 2. Select Session (#20) Complete and submit!

33 Session #20 Going Green: Finding Value in Managing Your Company's Surplus Asset Stream Speakers: Edward Wilson Puget Sound Energy Pacific Exchange Group & Recovery Seeker bit.ly/downloadameliaapp Tweet using: #SIGspring15

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