The foundation for an optimal utility capital project delivery model is built on a thorough understanding of the expected portfolio of work that the organization needs to accomplish. Portfolio spend profile analysis provides capital program organizations with the insight needed to determine the appropriate resourcing and risk mitigation strategies to employ in its delivery model.
Maintaining profitability in a rapidly fluctuating market environment is a challenge for any firm. For utilities, structuring a Capital Program Office to meet the specific needs of projected workload is a key success factor. Achieving the optimal Delivery Model requires considering a wide range of factors – and a significant investment of time and resources. Before refining an existing or transitioning to a new Delivery Model, it pays to first understand the transitional costs, value, and ongoing savings opportunities.
The Trump Administration has ushered in a new era of policy uncertainty for your sector. While it’s not yet clear how “America First” proposals will translate into actual policy, there’s a lot at stake for utility and power companies.
PowerAdvocate’s Energy Intelligence Group has assessed the potential implications of Trump Administration proposals on the global Supply Chain, what it could mean for your organization, and courses of action you can take to mitigate risk.
There has been no shortage of discussion about the new White House Administration’s policy change. But how will anticipated trade and market-related shifts affect your Supply Chain options and planning?
Watch our Q4 2016 Quarterly Market Outlook webinar on-demand to get answers to questions like these and more.
Utilities rely on supply chain to manage resources efficiently and effectively across a wide range of projects and operations. Delivering on this mandate is increasingly challenging – and critical – as utilities adjust operational cost models and investment strategies to satisfy stakeholders and stay competitive. By connecting new data sources for more accessible, powerful historic usage data, many utility Supply Chain organizations are enhancing their enterprise-wide value.
When it comes to the utility cost transformation journey, every group has a different role to play. Supply Chain organizations are in a unique position to apply their deep spend, cost, and supplier management expertise to help advance enterprise-wide objectives. One path for sustained value creation is through enhanced stakeholder collaboration – both internally with business units and externally with suppliers.
Utility Supply Chain continues to be in the spotlight, reflected in how much these organizations are asked to adapt and change. Driven by short-term earnings pressure, revenue challenges, and debt limitations, the C-suite needs more cost savings more quickly. The challenge for Supply Chain is to stay ahead of changing priorities and secure executive buy-in on the budget. While it may be easier said than done, earning the respect of business units helps pave the way to shared success.
Curious how the election of Donald Trump may impact your supply chain? Looking for new approaches to purchasing steel-based equipment within an environment of increasing protectionism? Wondering whether the bankruptcy of major shipping companies affects your logistics and freight costs?Watch our Q3 2016 Quarterly Market Outlook webinar on-demand to get answers to questions like these and more.
The scatterplot results from our previous blog post reveal two findings around utility gas distribution replacement rates that surprised us. First, our analysis shows that at the current rate of replacement, the majority of the industry will require at least 25 years to complete their programs. Second, we find capable, prominent companies plotted on the bottom of the y-axis – near a zero percent Replacement Rate. There are two metrics that help shed some light on what’s behind these findings.
Gas distribution replacement programs are big, complex, and critical capital initiatives to manage. Natural gas utilities spend $22 billion and modernize 30,000 miles of distribution pipeline annually to ensure safety and to enhance system reliability and integrity. From our experience providing technology and consulting to 14 of the top 50 U.S. gas utilities and helping them manage some $2.6 billion in annual gas infrastructure spend, we’ve seen utilities across the country ramp up their efforts to meet the challenge.