Schneider Electric is a global energy management specialist with manufacturing facilities in over 100 countries around the globe with a presence in 130 countries. Its strong global presence has allowed it to grow quickly, quadrupling in size over the last ten years through organic growth and global-scale acquisitions.

In New Zealand, the company employs a staff of 300, including 100 at the manufacturing facility in Christchurch. Though Schneider Electric has had a presence in New Zealand since the 1970s, it acquired local companies that have had a presence in the country for well over a century. “We’ve had an aggressive branding campaign to bring everything together under one Schneider,” says David Gardner, Country President of Schneider Electric New Zealand. “A big part of that local heritage here in New Zealand is a local brand called PDL.” PDL has manufactured electrical brands in the area for over 75 years.

“Everything that we do is based on energy,” says Gardner. The company has a mission to help customers make the most out of their energy, while focusing on the delivery of a safe and reliable energy source through efficiency, reliability and green initiatives. Population growth and customer needs have grown over the last decade, creating a need and opportunity for the company to deliver electricity to, and improve the energy efficiency of, a larger customer base.

COMPANY PLANS

Customers’ expect more from their supplier than electricity; they also expect that the supply will be safe and reliable. Schneider is focused on reducing carbon emissions while dealing with the rising costs of energy. Experts estimate that global demand for electricity will double. With a large global population in need of electricity, this creates a dilemma in terms of growing demand versus the need to reduce environmental impacts. The company is focused on reducing emissions by half and reducing its total environmental impact, while meeting this growing global demand. The most economical way to achieve these goals is through energy efficiency.

Energy efficiency is a hot topic in the homes of Schneider’s customers. The company focuses on educating people, helping them to make a difference in their homes, universities or local community in terms of the reduction of an energy footprint and costs. “We’re not necessarily looking to convince people that the dilemma exists,” he says. “In the end, if you’re not being driven by the environmental concern, then equally there’s a very strong case in terms of reducing your costs, be that in your business or in your own home in terms of consumption. It’s a wise investment.”

CAPITAL INVESTMENTS

In the last 2 years, the company made several significant investments. In Auckland, the company spent $20 million on a new head office, to increase its New Zealand staff and act as a showcase for the energy industry. As a showcase for the company, business leaders and consumers can see how energy efficient measures work. Though buildings consume a significant amount of energy; however, with the proper energy saving measures, a smaller energy footprint is possible. Since the building opened in February, over 1300 visitors have participated in an energy efficiency building tour.

The company delivered the building through the use of its own products, services, technology and engineering, allowing it to reduce its energy costs by 50 percent. The facility is more than 30 percent more efficient than the former building’s footprint. The company has saved over 400 tons of carbon emissions each year as compared to an old building that may have saved 800 tons of carbon emissions. “It has been very well received. Certainly, it’s helping us to create awareness, it’s certainly helping us to educate where possible with a real business case, business outcomes, [and] smart investments in energy efficiency,” he says.

Interest and reception from the engineering community has been overwhelming as has interest from the developers, facilities managers, etc. The building has earned the company an Engineering Excellence Award from the New Zealand Property Council.

The company’s second big investment came through the simplification of its existing systems. Acquisitions and organic growth had created a situation where the company was using four ERP systems. The result was a system that inhibited the company’s ability to serve its customers. Fortunately, Schneider had the opportunity to consolidate the platforms into a single ERP system. The company sought to bring distribution, connectivity and control of electricity into a single integrated solution for customers. The company invested in a new ERP system that allows the company to improve productivity and exceed prior levels of customer services, while creating the integrated solution the company intended. “The real opportunity that we have in front of us now and for the future is to take full advantage of that investment,” says Gardner.

COMPETITIVE ADVANTAGE

The company relies on Schneider Production Systems, its own strategy for continuous improvement. “What we’ve learned from our earlier implementation and continued efforts in our production facilities globally is that we can bring that now very much into all areas of the business,” says Gardner. Schneider seeks to drive the efficiency of the business while providing a higher level of satisfaction for its customers.

“As a global organization we have the advantage to leverage our global capability,” he says. Continuous improvement also encompasses the development of its people. As a result of technological and global capabilities and its well-trained staff, the company is able to quickly deploy and train the right people to implement best practices around the globe.

ON THE HORIZON

Schneider will continue to help its business and residential customers improve energy efficiency while reducing costs while breaking into new markets. Gardner sees a bright future in the health and education markets. The company also sees itself playing a major role in the shift towards electric vehicles, assisting with the development of the smart grid, transmission and distribution of energy. “Our approach today is very much to offer a much higher level of integrated solution, ideally that will help customers,” he says.