Energy & Utilities

The energy & utilities sector is witnessing rapid and pervasive change. The increasing focus on renewables, distributed generation, smart grids and digitization demands that traditional providers bring new capabilities and better align with emerging opportunities and challenges.

The onus will firmly be on energy & utility companies to invest in smarter infrastructures and combine emerging technologies and analytics to drive profitable outcomes.

With business agility and cost efficiency more important than ever, companies are tasked with the challenge of reinventing some of their core processes such as supply chain management and finance to drive enterprise objectives. 

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World-Class Procurement Processes

Strategic Sourcing Services

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GEP offers a wide and comprehensive range of solutions that help implement world-class procurement processes in the energy & utilities sector, including spend analysis, procurement outsourcing, procurement technology and strategic sourcing.

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.

  • Power Generation

  • Transmission & Distribution

  • Corporate Support

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 strong 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, enterprises 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

Transmission & Distribution

The energy & 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 & 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 companies can lower costs and improve reliability and customer service.

GEP addresses these challenges by:

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

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 percent. 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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