Power and utilities: a closer look at supply chains
What’s the bottom line?
Cost savings remains a top-of-mind concern as power and utilities industry leaders strive to meet the changing demands of customers, regulators and shareholders.
Improving the cross-functional performance of supply chain and work management can help achieve savings.
In the introductory case study, the utility profiled found an opportunity to reduce inventory by 20% to 45%, resulting in millions of dollars in savings for the organization.
However, cost reductions are not the only benefits utilities realize by improving the interaction between the supply chain and work management groups:
- Enhanced equipment reliability and maintenance productivity through improved process efficiency and throughput
- Improved demand planning, the benefits of which will ripple through the rest of the organization as more accurate material forecasts are used by other organizations, vendors and business partners
- Increased performance efficiency and accuracy of the rarely used inventory stocking logic (RUSL) calculation
These improvements represent a significant financial return to stakeholders and an opportunity to make additional investments in plant safety and reliability – and alternative generation sources.
Answers to your questions, at a glance