0312 Executive Digest.IR 4a

PwC

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.

That’s changing, however, as supply chain management leaders are under pressure to manage costs, simultaneously improve service to their business unit partners and become more proactive participants in driving business success. In addition, the lingering economic downturn has impacted the supply chain further, resulting in complaints from business units about deteriorating service quality. Needed is a new focus on supply chain customers–which are primarily the power supply and delivery business units–that enable the supply chain to target and deliver materials efficiently to operations.
 
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0312 Executive Digest.IR 4a

PwC

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.

That’s changing, however, as supply chain management leaders are under pressure to manage costs, simultaneously improve service to their business unit partners and become more proactive participants in driving business success. In addition, the lingering economic downturn has impacted the supply chain further, resulting in complaints from business units about deteriorating service quality. Needed is a new focus on supply chain customers–which are primarily the power supply and delivery business units–that enable the supply chain to target and deliver materials efficiently to operations.