![]() ![]() ![]() regulated utility sector as cash flow is reduced by tax cuts,” Energize Weekly, June 27, 2018. Simultaneously, they have had to contend with depressed wholesale power prices and, in the US, recent changes in corporate taxation that have led to reduced cash flows.ġ 1 See “ Moody’s downgrades U.S. In recent years, utilities have faced mounting pressure to replace their aging infrastructure (most coal-fired power plants are now more than 30 years old, for example) and expand their grid functionality. It is battle-tested, readily customizable to individual businesses, and designed for minimally disruptive implementation. BCG has designed a comprehensive and effective approach to getting there-one that spans strategy, organizational design, people and skills, metrics, and other key considerations. ![]() But the rewards of doing so can repay the cost of the effort many times over. Unfortunately, this narrow approach to procurement comes at a sizable opportunity cost to utilities at a time of unprecedented financial and operational strain.Įmpowering the procurement function to participate in high-level business strategy and incorporating it seamlessly into the daily operations of a utility can be quite challenging. Instead, the function remains confined to its traditional, purely tactical role-executing purchasing at the behest of the business and ensuring that suppliers comply with company guidelines. Yet few utilities unlock the procurement function’s full capabilities. Potential benefits include substantial cost savings, stronger and more productive ties with suppliers, and shared, innovative solutions to problems. When deployed strategically, the procurement function can be a powerful source of competitive advantage for utilities. Technology, Media, and Telecommunications. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |