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.
New Sources of Data and Information
By embracing new sources of data and information and applying analytics, Supply Chain organizations are designing new, more impactful ways of reducing utility costs and mitigating risk. New data sources being tapped include:
- Spend and cost modeling to support strategic sourcing with “good” data, benchmarking, and should‐cost calculations
- Historic data to improve capital project estimates and own the “P” in EPC
- High‐level financial budgets combined with historic usage data and applying analytics to gain a more strategic, broad‐based view of its supply chain – taking enterprise‐wide perspectives into consideration to improve budgets and forecasts
Accurate insight into near‐ and long‐term resource needs, historic spend patterns, and market dynamics is critical help utilities navigate the challenges associated with tight labor and materials markets. Without this insight utilities can risk delayed or lost revenue, suboptimal cash management, and excess or short inventory levels. Enter demand planning.
Applying Data for Demand Planning
As revenue pressures build, many utilities are looking to demand planning to help better align cost structure with operational and investment strategies. Upward of 40 percent of utility supply chain executives are already investing in improved demand planning to better support business unit objectives. And there’s good reason for this investment.
The demand planning vision: make historic data powerful and accessible to drive more intelligent demand forecasts and increase forecast confidence.
Analytics connect financial budgets with historic usage data to drive more intelligent demand forecasts. When done well, this approach enhances cross‐functional collaboration. It helps elevate supply chain’s responsiveness, effectiveness, and efficiency. And armed with intelligent demand forecasting capabilities, supply chain can be well‐situated to continuously advise stakeholders across the enterprise on achieving desired results.
One Utility’s Intelligent Demand Forecast Vision
Read our eBrief to find out more about applying data, analytics, and demand planning approach to enhance supply Chain outcomes. You’ll also get a glimpse into how the Supply Chain organization of one of the largest power companies in the United States is leveraging data and analytics to build out a dynamic, transparent demand and supply planning process and the value realized to date. To download the eBrief make sure to fill out the form on the right.
Want to find out how you can deliver more value from your spend, cost, and supplier data?