Partnering with suppliers to spark innovation and efficiency
What’s the issue?
SRM represents the next step in managing the supply chain more effectively.
In a highly-competitive marketplace and a still-recovering economy, utility companies are searching for new opportunities to reduce costs and improve operational efficiencies.
The current inability to pass through cost escalation as rate increases amplifies this challenge. Supplier relationship management (SRM) represents the next step in managing the supply chain more effectively:
- Utilities need to innovate as they respond to the regulatory pressures and investment challenges while they upgrade their infrastructure.
- An aging workforce will create a significant knowledge gap, and working collaboratively with critical suppliers can mitigate this issue.
- Suppliers are ideally positioned to work closely with utilities in spearheading innovations in technology, security and safety.
- Savings from SRM programs alone could lead to 3% to 10% savings in services spend.