CEVA Logistics has produced a research study to shed light on the supply chain challenges that modern utilities will face over the next five years.
High on the utilities industry agenda are the price determinations set by Ofwat (the water services regulation authority) and Ofgem (the office of the gas and electricity markets). The media predicts these external pressures will lead to jobs being cut and supply chain contractors being harder hit. CEVA’s report delivers insights into the facts and what action needs to be taken to achieve the tough efficiency challenges being set by the regulator.
Sean Kelly, CEVA’s senior general manager, for the UK & Ireland’s Industrial sector explains: “The report highlights a number of key themes. Cost reduction remains a priority for modern utilities. Price control, changes in regulation, weather patterns, and environmental pressures make a big impact on the sector. Our white paper shows that maintaining the status quo is not an option and how the supply chain can often be the catalyst to helping modern utilities respond to external pressures. A planned holistic approach towards end-to-end supply chain management can deliver significant cost and performance efficiencies from procurement and stock management right through to operational delivery on site.
“The benefits of a more efficient, leaner supply chain need to be realized if supply chains are to be successful. Our expertise in the utility sector includes working closely with energy, water, gas and oil companies to develop practices designed to deliver cost savings, productivity improvements and minimize losses,” says Kelly.
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