Energy & Utilities

Our Expertise in Energy & Utilities​

The future of the energy & utilities sector promises to be highly dynamic. Companies will face a variety of short- and long-term challenges, such as complying with expanding government regulation, rising operating costs, addressing an aging workforce and adoption of renewable energy technologies.

 

According to a report of Forrester Research, titled "The IT-Driven Energy Revolution: Translating Utilities' Business Transformation Into IT Opportunities", dated February 21, 2012, oil and gas companies are seeking to improve efficiency and move into new markets. Moving forward, companies will face a variety of short- and long-term challenges, such as complying with expanding government regulation, rising operating costs, addressing an aging workforce and efforts to embrace renewable energy technologies. Moreover, these challenges come in a market increasingly defined by mergers and acquisitions, a growing need for capital and decreasing demand due to economic slowdowns. In such a dynamic atmosphere, businesses are looking for ways to reduce spending while implementing short- and long-term strategies that promote growth and expansion.

GEP offers a variety of solutions that help implement world-class procurement processes in the energy & utilities sector, including spend analysis, procurement outsourcing, procurement technology and strategic sourcing. In order to maximize returns on investments and strengthen their financial future, companies are seeking best-practice solutions that embrace low-cost country sourcing, outsourcing non-core spend, leveraging technology and improving compliance. Our industry experts implement cost-saving strategies across all aspects of the energy & utilities businesses in the face of tomorrow’s industry challenges.

GEP | Power Generation

Energy & utilities companies face many challenges associated with refurbishing, renewing and expanding their power generation fleet. Some of these challenges come with associated costs and require capital investments in pollution control equipment, diversification of the generation mix to include renewables and building new nuclear and fossil power plants.

Implementing best-practice sourcing strategies requires understanding of global, regional and local markets to acquire material, equipment and services relevant to the power generation business. On the equipment and material side, companies are seeking to embrace low cost country sourcing to acquire major components such as air preheaters, large pumps, large motors and coal and ash handling equipment. On the services side, organizations need to implement exceptional contracting capabilities that use gain-sharing models, continuous improvement and optimize warranty obligations, indemnity obligations and insurance requirements.


GEP addresses these challenges by:

  • Implementing a long-term supply chain strategy
  • Maximizing return on material and service investments
  • Developing consistent data tracking

GEP | Transmission and Distribution

The energy and utilities sector faces a variety of costs and challenges associated with transmission and distribution. Companies face high capital investments in infrastructure development and technologies (such as smart grid) as well as the increased challenges associated with regulation, specifically rate adjustments in tough economic periods. In the face of these challenges, the energy and utilities sector is implementing sourcing and contracting strategies that achieve the highest value at the lowest cost, thus optimizing returns within a rate-case cycle. Whether this involves low-cost country sourcing to acquire power transformers in the global market or developing a progressive compensation model for line construction, companies should use best practice sourcing solutions to address their service, material and equipment needs.

Through implementing world-class sourcing practices, the energy & utilities can lower costs and improve reliability and customer service.

GEP addresses these challenges by:

  • Leveraging savings opportunities abroad
  • Reducing time-to-value on investments
  • Tracking savings compliance

GEP | Corporate Support

A significant portion of energy & utilities spend is in corporate support or shared services. These categories typically include, but are not limited to, HR, IT, legal, marketing/advertising, printing, office supplies, fleet and temporary workforce. In the past five years, these expenses outpaced inflation by approximately 50 per cent. Thus, it is of great importance to implement strategic sourcing programs that focus on this indirect spend and result in both reduced overhead allocations to business units and improved customer service.

GEP addresses these challenges by:

  • Aligning with key internal constituents
  • Easily identifying supply needs
  • Maximizing saving opportunities

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