revealing integrated strategic solutions
TRANSCRIPT
Revealing Integrated Strategic Solutions
Enterprise Services Sourcing:
Duke Energy
Jacob VelkySourcing Specialist
JLL
John LeddyRegional Account Director
www.sig.org/eval
Enterprise Services Sourcing
Revealing Integrated Strategic Solutions John Leddy Jacob Velky
Speakers:
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
Polling Question
4
Do you believe your organization recognizes the
value that exists in your non-core
support/enterprise services?
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 55
6
CEO
CPO
Enterprise
Administrative Services HR IT
GenerationMajor
ProjectsNuclear T & D Support
Customer Operations
$1.954
$1.861
$1.704
$1.572
$1.494
T & D
NUCLEAR
GENERATION
ENTERPRISE
MAJOR PROJECTS
Sourceable Spend ($8.6 Billion)
Total Supply Chain Employees: 1000
Enterprise Supply Chain Employees: 28
$0
$100
$200
$300
$400
$500
$600
Admin Services HR IT Cust Ops
Enterprise Spend ($ Millions)
Duke Energy Supply Chain and Spend
Administrative Services Sourcing
Aviation
Aircraft
- Purchase
- Lease
Maintenance
Labor
Training
Consulting
International Handling
Fuel
Security Services
Access Control
- Conversion- Net New Install
- Badges
Guard Services *
Investigation / Consulting
Training
Real Estate Services
Right of Way Acquisition
Surveying / Mapping
Transactions
Timber Management
Portfolio
- Carpet
- Furniture
- Energy Efficiency
- Move Services
- WOF Standards
Real Estate Services
(Outsourced)
Facilities Management*
Project Management*
- General Contractor
- Electrical
- Mechanical
- Design / A&E
Lease Administration*
Dam Deformation Surveys*
Support Services
Copy / Print *
- MFD / Printers
- Wide Format
- Copy Services
Document Management
Mail Services
Merchandise
- Apparel
- Hard Goods
- Uniforms
Office Supplies
Travel Services
Environmental Services
Abatement
Geological
Survey / Testing
Waste Management
Category Alignment by Corporate Administrative Services Tower
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
JLL Facts and Overview
9
A STRONG FOUNDATION
FOR PARTNERSHIP
2013 revenue
$4.7B
S.F. under management
3.4B
Employees
58,000
Corporate offices
230+
LEED APs
1,300+
Six Sigma Green or Black Belts
390+
Over 2.1 billion s.f. of facilities under management
18,000 client sites in 70 countries
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
2 – 15%
0.4 – 0.8%
5 – 15%
5 – 10%
10 – 30%
Capital ratios
and lending capacity
Energy
Management
Facility
Management
Location Advisory &
Transaction
Management
Capital MarketsLease
Administration
Project
Management
10
Drive greater value from all of your real estate functions
15 – 20%
Networked Organization - Opportunity
Site A Site B Site C
Business Unit
Lab
or
Management,
Administration,
& Technicians
Security,
Landscaping,
Janitorial,
Repairs
& Maintenance,
HVAC, etc.
Co
ntr
acts
Technology,
Training,
Compliance,
Energy ProgramsSu
pp
ort
Site A Site B Site C
Business Unit
Site A Site B Site C
Business Unit
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
Common Approach: Reduce Costs; Leverage Scale & Buying; Common
Processes; Service-Level Measurement; Manage / Shift Risk; Common
Measurement / Reporting; Compliance; Audits; Benchmarking; Innovation;
Flexibility, Control
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
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
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
Sourcing & Category Management
12
Case Study – Integrated Facilities Management
13
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
Case Study – Integrated Facilities Management
Integrated Facility Management
Project Management
Critical facility management
Mobile and static engineering
Lease Administration
Call Center management
Energy and Sustainability
Technology
Services we partner with Duke Energy:
• Security
• Environmental, Health, and Safety
• Union Engineering Labor (Midwest portfolio)
JLL Solution Provided:
Case Study – Facilities Management
$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
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
Key Results Change Management
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
Polling Question
17
Do you have a formal governance process in place
for your strategic partners?
Duke Energy/JLL Governance Model
18
19
Governance Framework
Progressing towards partnerships
Q&A
21
Comments and Questions?
22
Contact Information:
Jacob Velky
Sourcing Specialist
Duke Energy
(704) 382-2115
John Leddy
EVP - Regional Director
JLL
(704) 310-1665
22
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Session #6
Enterprise Services Sourcing:
Revealing Integrated Strategic Solutions
Jacob Velky
Duke [email protected]
John Leddy
Speakers:
www.sig.org/eval
