The task of managing this transformation fell initially to Bridget Reidy, who was named the company's first chief supply officer in 2003 to head up the initiative. In addition to streamlining Exelon's supply chains, the three-year consolidation plan called for revisiting all the company's spend categories from an enterprise-wide perspective and re-sourcing categories using a total cost of ownership (TCO) approach; standardizing supply chain practices and processes; and maintaining or improving supply chain service levels. The timeline and goals for what became known as the Supply Chain Transformation Initiative (SCTI) were ambitious: bring the new supply organization together, unify the company's supply staff in a new reporting structure and begin acting as an enterprise-wide supply chain in just four months, and then achieve $200 million in savings over the three-year life of the project, including $120 million in the first year.
Reidy was promoted in July 2004 to senior vice president for customer and marketing services with the Exelon Energy Delivery business, and Craig Adams took over as senior vice president and chief supply officer (CSO) with Exelon. Other key executives on the SCTI team include Krista Robinson, vice president of supply strategic sourcing; David O'Brien, vice president of supply operations; and Delia Stroud, vice president of supply business operations and governance.
Individually, each of these executives has overseen significant transformation in Exelon's supply chain. On the strategic sourcing side, Exelon reorganized its sourcing specialists around spending portfolios and gave category managers responsibility for all the operational issues involved in their spend categories, and Exelon developed a database to allow the company to view its spend enterprise-wide. Meanwhile, the Supply Operations group has focused on achieving staffing efficiencies by streamlining processes and eliminating redundancies, including by standardizing on best practices consistently across Exelon.
Business Operations and Governance, a new department within the consolidated Supply organization, was formed to optimize the effectiveness of Supply's strategic and tactical arms by standardizing processes, applying consistent business planning, driving new automation opportunities, coordinating internal and external communications, and developing cross-functional approaches to provide business solutions. The group leads Exelon's Supplier Diversity program to interject more diversity suppliers into the procurement process, drives Supply's projects and programs, provides direction and support for e-business and systems administration and governance and coordination of key metrics, business processes and planning.
Working together, this team has already achieved significant results and was on track to hit the first year savings target. But Reidy says that an equally important accomplishment has been the new strategic partnership that the SCTI team has forged between the business units and the supply organization, a relationship that will be critical as Exelon continues its drive to eliminate supply chain costs.
Read more about the Exelon Team's story in “Come Together” from the December 2004/January 2005 issue of Supply & Demand Chain Executive.
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