Summary: The energy and utilities industry faces costly supply chain disruptions due to aging infrastructure. However, by implementing visibility tools and collaboration, these disruptions can be mitigated. This article provides tips on avoiding unexpected downtime and highlights how IBM helps energy and utilities companies gain more visibility and resiliency in their supply chains.

FAQ

Why is supply chain visibility important in the energy and utilities industry?

Supply chain visibility is important in the energy and utilities industry because it helps prevent disruptions in operations. By having visibility into inventory levels, weather events, customer demand, and logistics, companies can better anticipate and take action to avoid unexpected downtime.

What are some challenges faced by the energy and utilities industry?

The energy and utilities industry faces challenges such as longer lead times for equipment delivery and difficulties in obtaining vital supplies. Transformer prices have doubled, while the average lead time for delivery has tripled in some cases. Many water utilities are also struggling to obtain computer chips for their water trucks and other essential supplies.

How can companies in the energy and utilities industry improve their supply chains?

Companies in the energy and utilities industry can improve their supply chains by following these tips:

1. Anticipate and take action: Identify external events and their impact to predict disruptions and take actions to mitigate the effects.
2. Improve forecasting accuracy: Develop a good understanding of materials needed for infrastructure expansion or transportation and ensure sufficient stock levels.
3. Automate to ensure consistent service levels: Use real-time demand sensing and visibility into supplier networks to prevent product excess or shortages.
4. Ensure maximum maintenance reliability: Provide maintenance crews with the necessary parts to improve productivity and optimize spares inventories across regions and distribution centers.

How IBM Helps Energy and Utilities Supply Chain Leaders

IBM offers solutions to help energy and utilities supply chain leaders gain more visibility and resiliency. IBM MRO IO reduces unplanned downtime by ensuring on-site availability of critical materials and spares. IBM Control Tower provides end-to-end visibility, advanced analytics, and actionable workflows to identify and resolve critical supply chain issues faster. IBM Consulting offers supply chain services with a focus on building transparent, intelligent, resilient, and sustainable supply chains.

With the right tools and collaboration, the energy and utilities industry can overcome supply chain challenges and improve efficiency, all while preparing for future opportunities.