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Industry Best Practices Benchmarking for a Leading Public Utility Services Company: A SpendEdge Case Study

Engagement Overview:

A leading public utility services provider wanted to increase customer satisfaction and diminish bad debt write-offs. To identify and benchmark the best practices, the energy industry client approached SpendEdge to devise a comprehensive approach that would help them identify and benchmark the industry best practices. A detailed quantitative analysis of various categoriesrequest proposal within the supply chain was carried out to identify and benchmark the industry best practices to be followed.

About the Client:

A leading multinational energy industry firm. The client is a leading public utility services company with years of expertise and heritage stretching back to over a 100 years. The company employs about 70,000 people in 30 emerging economies.

Business Challenge:

The client was facing challenges in benchmarking the best practices in the energy industry.

How did SpendEdge Help the Client?

  • Step 1: Determined the peer organizations and processes to be benchmarked

This step involved the accurate evaluation and determination of companies to be benchmarked. It acted as a cornerstone for the entire energy industry best practices benchmarking process.

  • Step 2: Gathered and analyzed data to identify performance gaps

This step revolved around the analysis of gathered data to determine the extent to which the client’s performance lags behind the best in each segment. The implementation of this step offered a clear picture of the client’s business processes in comparison with their competitors.

  • Step 3: Determined the future trends

It involved the detailed examination of the past performance of the client in relation to their competitors in the public utility services sector. Such an approach offered detailed insights, which helped the client to gain a clear idea of the available options to assign a realistic concept of the potential benefits of adopting and benchmarking the best practices.

Key questions answered in this industry best practices benchmarking engagement include:

energy industry

Benefits of the Engagement:

The industry best practices engagement helped the energy industry client to identify the key performance metrics and fine-tune their strategies to boost savings. Our industry best practices experts worked as an extension of the firm to identify the success factors that uncovered major opportunities for improving their services.

Why incorporate best practices benchmarking?

To withstand the growing competitive pressure, players in the energy industry must adopt better strategies and deliver better results at a comparatively lesser cost.  To do so, companies employ strategic planning as a part of their organizational processes to identify the core business value and employ strategies to best achieve them.

Industry best practices benchmarking has become an integral part of operational improvements and strategic planning. Identifying and benchmarking best practices help companies to bridge gaps and improve performance using quantitative and qualitative information collected from various industry-specific resources.

Our Findings:

Benchmarking best practices will enable organizations to increase competitiveness and enhance value from a customer’s perspective. If your organization is on the lookout for an objective way to enhance market growth, best practices benchmarking is the ideal approach to identify alternative and feasible ways to enhance performance.

However, the success of every industry best practices benchmarking process ultimately depends on the organization’s commitment to the process. To sustain market leadership, energy industry companies must adopt best practices benchmarking as a permanent and important aspect of the organization’s business processes.

 To know more about our best practices benchmarking solutions
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Related Posts:

Global Electric Utilities Market – Supply Market Trends and Opportunities

Electricity is the powerhouse on which the modern world runs. In fact, the global utilities market is one of the highest grossing industries in the world. Electric utilities provide energy services and deliver electricity to organizations.  Here is some good news for the stakeholders in the sector, the electric utilities market has immense growth potential especially with government authorities pledging incentives to promote the installation of renewable energy facilities. Furthermore, the players in this sector are increasingly contemplating the use of advanced renewable technologies for minimizing carbon emissions. (Source: Global Electric Utilities Procurement Report) This is a good sign for promoting environmental sustainability in the long run. Here’s a comprehensive view of the market trends and opportunities for the global electric utilities market:Get Free Sample_SE

Spend potential and key markets

The investments by manufacturers across end-user industries such as mining, chemical, and oil and gas in terms of production plant expansion to meet the global demand are on the rise. This will result in a consequent rise in the demand for energy and accelerate the demand for electricity in the years to come. The rising demand for electricity, especially from developing nations are expected to fuel the rate of electricity generation.  In fact, APAC is expected to have a high impact on the demand and supply of electric utilities, with countries such as China, India, and Japan being the major investors in the energy sector and also the largest consumers of electricity. Investments in electricity networks and storage for large-scale transmission of electricity are being made to meet the shortage of electricity in India. Furthermore, the increase in manufacturing capacities of the petrochemical and specialty chemical segments in the chemical industry will fuel the growth of the electric utilities market in the North American market.

Cost analysis: supplier costing

Two of the major cost components in the electric utilities market include the generation and transmission costs. With all eyes on new ways to generate renewable energy, which requires investment in better infrastructure, the costs incurred by players in this sector will shoot up. But the fact that the cost of generating electricity from renewable resources will be cheaper when compared to the traditional method is a great relief for companies in the electric utilities sector.

Looking for a complete pricing outlook and information on factors influencing costs and category spend? Request a sample

Market innovations

The rate of energy concern has been one of the major concerns of the electric utilities sector for a long time. However, switching over to solar cooling systems is a great way to reduce the increased dependency on electricity. One of the leading suppliers in APAC has set up a solar energy research facility that includes the world’s largest HVAC system with storage capabilities. This combination of solar, thermal, and cooling systems procured by the buyer has high potential to replace the cooling systems that run only on electricity. This can help reduce electricity consumption, thus facilitating cost benefits for the buyer

Supplier selection and procurement best practices

If you are a buyer in the utilities market, here are some things that you need to keep in mind during supplier selection and procurement processes. Firstly, buyers must engage with suppliers that provide data analytics for installing systems. This will reduce data outage and transmission loss, and enhance load and demand forecasts. Also, it is important for buyers to rely on suppliers that use efficient electricity generation measures, including the use of sustainable fuels for power generation. This will help buyers to meet sustainability goals and minimize carbon emissions.

Read more about the market outlook of the electric utilities market along with procurement best practices, market trends, pricing insights, category management, and market challenges in SpendEdge’s upcoming report on the global electric utilities market.

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