Skip to main navigation

Power and utilities: a closer look at supply chains - How does this affect you? - Ernst & Young - Global

Power and utilities: a closer look at supply chains

How does this affect you?

  • Share




Misalignment between supply chain and work management hinders improvement opportunities..

Every electric generating station is different.

However, several common performance barriers deter interaction between the supply chain and work management organizations:

Organizational

  • Chain of command. In many utilities, the supply chain and work management departments report to different executives.
  • Roles and responsibilities. Supply chain personnel often play the role of outsider in the work management process.
  • Physical barriers. Supply chain and work management groups tend to be physically separated — often at a substantial distance, reducing the opportunities for collaboration.

Process

  • Disjointed process development. Supply chain and work management groups often develop and maintain their processes independently, which can lead to process misalignments and inefficiencies that hinder information flow.
  • Poor process execution. Lack of process definition, insufficient performance monitoring, or less than rigorous process performance re-enforcement and improvement impact both supply chain and work management personnel.
  • Insufficient resources. The work planned often exceeds the personnel capacity available to perform it, resulting in deferments that contribute to excessive component inventories, carrying costs and possible component obsolescence in the warehouse.
  • Outdated lead times. Lead times for components are sometimes not routinely updated, preventing work planners from ordering parts in a timely manner.

Technology

  • Poorly configured software. Improperly-configured applications can challenge information visibility and flow, hindering cross-functional processes.
  • Lack of alerts. Work management is often not notified when component lead times change so it can adjust its planning and ordering routines.
  • No algorithms. Algorithms can automatically adjust component lead times based on actual experience, reducing manual work and the risk of inaccurate lead-time data.
  • Insufficient reporting. Many organizations lack the data, analytics, or reports necessary to readily identify sub-optimized supply chain and work management.

<< Previous | Next >>

Back to top