Enterprise Services Sourcing:

Transcription

1 Enterprise Services Sourcing: Revealing Integrated Strategic Solutions Duke Energy Jacob Velky Sourcing Specialist JLL John Leddy Regional Account Director

2 Enterprise Services Sourcing Revealing Integrated Strategic Solutions Speakers: John Leddy Jacob Velky

3 Session Agenda Duke Energy's Supply Chain and Spend Profile Identified Sourcing Opportunities Duke Energy/JLL Case Study Driving Future Success: Governance and Partnership 3

4 Polling Question Do you believe your organization recognizes the value that exists in your non-core support/enterprise services? 4

5 Facts About Duke Energy 150+ years of service 7.2 million electric customers / 500,000 natural gas customers Fortune 250 company $110+ billion in assets Stock dividends for 85+ years Traded on NYSE as DUK Dow Jones Sustainability Index 100 Best Corporate Citizens by Corporate Responsibility magazine 5

6 Duke Energy Supply Chain and Spend Total Supply Chain Employees: 1000 Enterprise Supply Chain Employees: 28 CEO CPO Sourceable Spend ($8.6 Billion) $1.494 $1.954 Enterprise Generation Major Projects Nuclear T & D Support $1.572 $1.704 $1.861 Administrative Services HR IT Customer Operations Enterprise Spend ($ Millions) T & D $600 $500 $400 $300 $200 $100 $0 Admin Services HR IT Cust Ops NUCLEAR GENERATION ENTERPRISE MAJOR PROJECTS 6

7 Administrative Services Sourcing Category Alignment by Corporate Administrative Services Tower Aviation Security Services Real Estate Services Real Estate Services (Outsourced) Support Services Environmental Services Aircraft - Purchase - Lease Access Control - Conversion - Net New Install - Badges Right of Way Acquisition Surveying / Mapping Facilities Management* Copy / Print * - MFD / Printers - Wide Format - Copy Services Abatement Maintenance Labor Training Consulting International Handling Fuel Guard Services * Investigation / Consulting Training Transactions Timber Management Portfolio - Carpet - Furniture - Energy Efficiency - Move Services - WOF Standards Project Management* - General Contractor - Electrical - Mechanical - Design / A&E Lease Administration* Dam Deformation Surveys* Document Management Mail Services Merchandise - Apparel - Hard Goods - Uniforms Office Supplies Travel Services Geological Survey / Testing Waste Management

8 Sourcing Opportunity Assessment Problem Multiple Contracts Fragmented Spend Regionalized Workforce Demographics Approach Company-Wide Spend Profile Strategic Sourcing Events Enterprise Contracts Examples Security Guard Services Managed Print Services Facilities Management Services Project Management Services 8

9 JLL Facts and Overview Over 2.1 billion s.f. of facilities under management 18,000 client sites in 70 countries A STRONG FOUNDATION FOR PARTNERSHIP 2013 revenue $4.7B S.F. under management 3.4B More control, better responsiveness, through self performance Low cost streamlined sourcing options Number one global provider of Integrated Facilities Management services 32,200 engineering and facility experts $10 billion client spend managed Employees 58,000 Corporate offices 230+ LEED APs 1,300+ Six Sigma Green or Black Belts

10 Drive greater value from all of your real estate functions 5 10% 2 15% Project Management Energy Management 15 20% 5 15% Location Advisory & Transaction Management Facility Management 10 30% % Lease Administration Capital Markets Capital ratios and lending capacity 10

11 Support Contracts Labor Networked Organization - Opportunity Business Unit Business Unit Business Unit Site A Site B Site C Site A Site B Site C Site A Site B Site C Management, Administration, & Technicians Maximize Resources/ Costs: Remove Redundancy; Collapse Layers; Market Compensation; Skills & Task Alignment; Manage-by-fact; Define Roles; Performance Management; Governance; Benchmarking; Leverage Technology/ Information; Strategy for Self-perform vs Outsource Security, Landscaping, Janitorial, Repairs & Maintenance, HVAC, etc. Common Approach: Reduce Costs; Leverage Scale & Buying; Common Processes; Service-Level Measurement; Manage / Shift Risk; Common Measurement / Reporting; Compliance; Audits; Benchmarking; Innovation; Flexibility, Control Technology, Training, Compliance, Energy Programs Common Programs: energy, sustainability, critical sites, EH&S; Rent Technologies vs Buying; leverage resources across enterprise; Common Tools; Benchmark across units; Talent Management; Quality Control, Share Best Practices, Common Systems 11

12 Sourcing & Category Management Electrical Plumbing Doors & Locks Waste Removal Document Destruction and Storage UPS/Generators Security Guards Fire/Life/Safety Roofing HVAC Janitorial Elevator/ Escalator Building Automation Services & Systems Office Services Reprographics Mail Ship/Receiving Supplies (MRO, Office, Janitorial) Food Service Cafeteria Beverage Service Vending Uniforms Landscaping/Snow Pest Control General R&M Carpentry Painting Handyman Glass Locksmith Architecture & Engineering General Construction Lighting Cabling Moving Furniture Carpet & Flooring 12

13 Case Study Integrated Facilities Management Duke Energy Managed Portfolio: 13+ million square feet, roughly 2,900 locations Building Types include: Headquarter/Regional Headquarter Operation Centers and Warehouses Substation/Telecom sites Annual Capital Spend - $70M, 300+ projects 3,000 plus leases 13

14 Case Study Integrated Facilities Management JLL Solution Provided: Integrated Facility Management Lease Administration Project Management Call Center management Critical facility management Energy and Sustainability Mobile and static engineering Technology Services we partner with Duke Energy: Security Environmental, Health, and Safety Union Engineering Labor (Midwest portfolio)

15 Case Study Facilities Management Key Results $45M+ in OpEx savings since 2004 (Labor/Sourcing) FM ROI of 433% LA ROI of 381% $7M+ in PjM savings since 2010 Outstanding KPI performance: Budget/Forecast Cost Savings Targets Customer Satisfaction Safety (JLL/Contractors) Accounts Receivable (AR) Current AR kept above 95% collected Change Management Merger Activity Transitioned portfolios within 90 days Produced immediate OpEx Savings Adaptive Organization Proactive/Flexible staffing Enhanced FM/PM Skill Sets Technology solutions delivered: Call Center/CMMS Financial/Forecasting Lease Administration Project Management Capital Planning Process Energy Management

16 Case Study Facilities Management Focus on Safety Robust Safety program, focusing on performing work safely OSHA TICR rate under 1.00 (Jones Lang LaSalle team and all managed Contractors) Customer Satisfaction Increased overall satisfaction scores from 76.30% to 79.44% (annual survey of occupants) Work Order Satisfaction rates above 94% for all work completed (response and quality) Continuous Improvement Implemented robust preventative maintenance systems (technology/procedures) Stabilized and improvement critical facility redundancy Improved talent through training and career development Best practice focused, importing and exporting practices as developed

17 Polling Question Do you have a formal governance process in place for your strategic partners? 17

18 Duke Energy/JLL Governance Model 18

19 Governance Framework 19

20 Progressing towards partnerships

21 Q&A Comments and Questions? 21

22 Contact Information: Jacob Velky Sourcing Specialist Duke Energy (704) John Leddy EVP - Regional Director JLL (704) John.leddy@am.jll.com 22

23 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 (#6) Complete and submit!

24 Session #6 Enterprise Services Sourcing: Revealing Integrated Strategic Solutions Speakers: Jacob Velky Duke Energy John Leddy JLL bit.ly/downloadameliaapp Tweet using: #SIGspring15

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