THE WOODLANDS, Texas, June 24, 2002 — Pantellos recently announced that it has signed a 12-month agreement with Florida Power & Light Co. in which the electric utility company will use Pantellos’ Premier Dynamic Services offering to help improve its procurement processes and reduce costs.
As part of the new agreement, FPL will use Premier Dynamic Services this year to help it electronically source and procure approximately $50 million in goods and services across all of the company’s operations and business units – including power generation, nuclear, transmission & distribution, FPL Energy and FiberNet activities.
To date, FPL has used Pantellos to conduct successful online auctions for purchasing various products and services, including insulators, construction services and vegetation management services. FPL reports that using Pantellos Dynamic Services has helped it save an average of more than 18 percent on these and other supply chain purchases.
Pantellos Dynamic Services, which include online auctions, are an extremely effective tool for supply chain and procurement professionals. In reverse auctions, suppliers bid competitively for a buyer’s purchase, allowing buyers to purchase goods and services at the most competitive market prices. The result is typically lower total costs for the buyer, as well as streamlined and automated procurement cycles.
Participating suppliers have access to new business, visibility to competitive bidding and often access to higher customer spend volumes. Pantellos has conducted more than 350 such Dynamic Services events to date, representing more than $450 million in spending, and provided more than $80 million in savings for utility companies. Utility companies using Pantellos Dynamic Services have reported an average savings of 20 percent and a return on investment of 30-to-1.
Using an enhanced “premier” level of Dynamic Services, Pantellos and its utility customers work together to develop and instill a programmatic approach to electronic sourcing and procurement.
In this case, Pantellos provides a multidisciplinary team who works on-site with utility customers to identify the best potential product or service categories for savings; integrates electronic sourcing tools such as online auctions into the customer’s business processes; designs market strategies; researches and recruits bidding suppliers; conducts and manages auction events; and provides monthly reports for analysis and decision-making.
“We are extremely pleased with the savings we’ve experienced to date. We believe this program helps FPL get better business results and ultimately creates more shareholder value,” said John Cusick, vice president of integrated supply chain for FPL.
“The vision of Pantellos is to be the indispensable supply chain partner for our utility and energy customers,” said Steve Newland, vice president of sales and marketing for Pantellos. “We are therefore committed to working closely with our customers to help them succeed. We appreciate Florida Power & Light Company’s relationship with Pantellos and look forward to continue helping the company minimize costs, increase efficiency, improve business results and deliver on its promise to customers and shareholders.”
Pantellos is the supply chain services company for the utility and energy industries. Built by the industry, for the industry, Pantellos offers access to deep supply chain expertise, a broad suite of supply chain services, an active trading community and leading-edge technologies. Pantellos is based near Houston, Texas, USA. For more information visit http://www.pantellos.com.
About Florida Power & Light Co.
Florida Power & Light Co. is the principal subsidiary of FPL Group Inc., nationally known as a high quality, efficient and customer-driven organization focused on energy-related products and services.
With annual revenues of more than $8 billion and a growing presence in more than a dozen states, FPL Group is widely recognized as one of the country’s premier power companies.
Florida Power & Light Company serves approximately 4 million customer accounts in Florida. FPL Energy, LLC. , FPL Group’s energy-generating subsidiary, is a in producing electricity from clean and renewable fuels.
Additional information is available on the Internet at http://www.fpl.com, http://www.fplgroup.com and http://www.fplenergy.com.