The Woodlands, TX — June 18, 2003 — Pantellos, a supply chain services company for the utility and energy industries, this week announced that it has now conducted more than $1 billion in online reverse auctions for its utility customers, generating more than $190 million in customer-reported savings and an 18 percent average savings rate.
Pantellos said it has managed more than 650 online auctions for its utility customers since it began providing its Dynamic Services auctions offering in January 2001.
Pantellos conducted more than 300 auctions in 2002 with a total spend volume of almost $500 million, generating more than $88 million in customer reported savings. The company said it is currently on pace to conduct more than 600 auctions with $700 million in spend volume and $140 million in expected customer savings this year. Pantellos managed 102 auctions in May alone with a total spend volume of $90 million, both monthly records for the company, the provider said.
Utilities have used Pantellos auctions to source more than 100 product and service categories to date, including indirect goods such as envelopes, copiers, chemicals and steel products; and direct goods such as power transformers, boiler tubes and fuels.
"Utilities are increasingly using online auctions as they extend their use of e-commerce tools and technologies," said Jim Neikirk, president and CEO for Pantellos. "Our Premier Dynamic Services auction programs identify and obtain market prices when procuring goods and services, generating average reported savings of more than 18 percent. In addition, auctions cut the procurement cycle time from months to weeks to sometimes days when compared with traditional sealed bid methods."
Pantellos has also electronically sourced capital projects and other services for its customers, including vegetation management, security and janitorial services.
Pantellos' said its Premier Dynamic Services instills a disciplined, programmatic approach to using auctions. Through the offering, Pantellos provides a multidisciplinary team that works on-site with customers to identify the best auction categories; research, recruit and manage supplier participation; create and implement internal or supplier training programs; structure and personally manage the auction events; and provide post-bid analysis and regular reporting. The team typically includes a Pantellos Dynamic Services manager, development manager, auction manager and an array of portfolio managers who apply their knowledge to the categories being sourced.