Supply Chain Management

We’ve Adopted SAP Ariba as our Procure to Pay E-Commerce Solution

SAP Ariba's cloud-based platform connects SCE and suppliers and provides online access to:

Sourcing and bidding
Negotiation and contracts
Purchase orders
Invoicing
Real time payment status
More flexible discounting

We believe this new platform will create new efficiencies across our Supply Management processes. If you have any questions or concerns, please email us at aribainfo1@sce.com.

Employing Best Practices and Strategies

Our Supply Chain Management (SCM) group is responsible for all activities associated with procurement, storage, distribution, and final disposition of the goods and services the company needs to do business. We utilize industry best practices and other strategic business initiatives to help achieve our procurement and material management goals.

Our procurement goal is to decrease acquisition, ownership and disposal costs, ensure compliance with regulatory guidelines, and promote supplier diversity. We do this by implementing contracts with sensible terms and conditions.

Our purchasing decisions are based on value as measured by cost, quality, and service. Purchasing practices are carefully monitored by a variety of regulatory agencies such as the California Public Utilities Commission and the Federal Energy Regulatory Commission.

To provide the best customer service and perform maintenance and repairs on our electrical equipment, we must have an optimal supply of material (transformers, cable, meters, etc.) readily available.

SCM's material management function uses a variety of strategies to ensure material availability, including internal stocking, capacity planning, and consignment. Material management also coordinates the delivery of materials and manages the disposal and reclamation of salvageable material.

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Purchasing Strategy

Our Supply Chain Management (SCM) group has adopted comprehensive purchasing strategies and programs. These strategies help SCM achieve its service, quality, and cost goals in the acquisition and management of goods and services.

Our purchasing strategy includes sourcing guidelines, supplier programs, diversity programs, and supply chain tools like electronic data interchange (EDI).

Our sourcing strategy is based on a process of creating value. In making sourcing decisions, we go beyond the purchase price to consider all supply chain costs associated with an item or service.

In addition to the purchase price, our sourcing decisions incorporate costs for storage, distribution, use, and disposal of goods. We also consider the impact of quality and service to internal SCE business processes.

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The Supplier Performance program provides recognition to key suppliers for providing superior value, quality and service to SCE. In this program, an agreement is reached with each participating supplier detailing costs, quality, and service goals for the coming year.

The goals are specific to the type of product or service the supplier provides. Superior performance in these categories results in valuable public recognition and awards for high-performance suppliers.

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We are committed to promoting opportunities for diverse business enterprises (DBEs), including woman, minority and service disabled veteran-owned businesses. Our Supplier Diversity program is designed to increase DBE participation in our bidding and contracting process.

Our general policy is to procure equipment, materials, supplies and services – including contract construction – on the basis of competitive bids from multiple qualified sources, except when otherwise justified.

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