UPMG Utility Supply Chain Benchmark Study

"The only comprehensive Supply Chain benchmark study
                           that is conducted by and for the utility industry"

The UPMG Benchmark Study originated from UPBEAT (Utility Procurement Benchmarks for Evaluating Activities and Techniques) which was conceived and conducted by an informal group of utility companies to provide industry data that was not available elsewhere.

In 2004, UPMG and the Applied Energy Group (AEG) accepted responsibility for conducting this study on behalf of the participating utilities. Since then, the Study Report has been expanded from fifty-two to almost one hundred and twentypages. It includes graphical depictions of thirty-seven key supply chain metrics and fifty-seven operational metrics related to Purchasing, Materials Management and Warehousing.  This is an increase of thirty-two from just four years ago. A new Accounts Payable section was recently added, and the Qualitative section was increased by five questions this year.

Now in its fifth year the Study has produced an historical database of metrics from more than thirty-five companies.

In 2005, in response to a request by the participants, AEG introduced the Benchmarking Scorecard. Using data from the Study, the Scorecard graphically depicts the performance of participants in twenty-four ratios. Distilling a large amount of data into these key performance metrics enables participants to more easily compare themselves to other companies. AEG offers an optional customized Scorecard to assist participants in identifying high profile performance improvement opportunities and best practices that may apply.

In 2007 some major changes were made to the format and organization of the Report.

A half-day Workshop is conducted for participating companies at the conclusion of the UPMG Annual Conference in late September to early October. The Workshop provides an important forum for the active involvement of the participants which has resulted in the continuous development and improvement of the Study and the Report.

The attendance and level of discussion at the Workshops demonstrate the importance of benchmarking and the value of the Study. The comments of the participants are another indication of the benefits of the study, for example:

• "Thank you for what you do. We have already used some of the information to get additional funding for the 2007 budget."
  
• "The metrics in the Study and the Scorecard were instrumental in developing our own internal dashboard."
  
• "The Scorecard has helped us identify several performance improvement initiatives."
  
• "The Benchmark Report is used as part of our annual budgeting process."
  
• "We have found the UPMG Benchmark Study to be an invaluable tool in supporting our merger integration process."
  

Participation in the UPMG Utility Supply Chain Benchmark Study continues to grow each year. In 2007 there were 25 participating companies.

If you are interested in participating or require additional information please contact:

Lonny O'Rourke
UPMG Benchmark Committee Chairperson
Tel: 516-545-4328
Email: lorourke@keyspanenergy.com

Or

Jack Cusack
Applied Energy Group
Tel: 516-426-7697
Email: jcusack@appliedenergygroup.com

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