In the power and utilities industry, supply chain traditionally has been regarded as a necessary cost burden to power supply and delivery businesses. That’s understandable because a regular flow of materials is critical to achieving the company’s critical mission of keeping the lights on.
Nonetheless, utilities have realized that an efficient supply chain network has much to contribute to the overall performance of power and utilities companies. Supply chain management leaders have long understood and practiced consolidation of warehouses to increase operating efficiencies, reduce inventories and save costs. Trouble is, the focus has been purely on leaning the supply chain, and few companies have defined a clear vision for the role of an effective supply chain within the larger utility operations organization.