Power and utility companies face pressure to reduce operational costs, and are looking at how they can leverage their inventory assets to improve supply chain performance.
The pressure on utilities, from both the capital markets and regulators, to reduce operational costs is causing industry leaders to look at how they can enhance supply chain performance.
Utility supply chains have a complicated assignment, coping with such factors as a diverse material base, uneven and unpredictable demand, and the need to maintain safety stock and critical spares to respond to emergencies. Even so, solutions must be found to optimize inventory levels, reduce inventory management costs, and minimize obsolescence costs while maintaining service and availability levels. The answer is to leverage inventory and manage it as an asset.