Procurement Best Practices of Power Generation Utilities

Power Utilities Move from Cost- to Value-based Procurement to Gain Supply Chain Efficiencies


This research service focuses on the evolving material and services procurement practices of major power generation utilities globally. It provides an in-depth analysis on the evolving procurement practices in power utilities and discusses common challenges. Based on the on-going transformations in procurement practices, this research offers a glimpse into the future of procurement. Receding profit margins, volatility in fuel prices, over-subsidisation of electricity tariffs, increasing customer focus, the globalisation of the supply chain, and eco-friendly government sourcing guidelines are the major reasons for the shift in power utilities’ procurement practices.

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Table of Contents

Procurement Best Practices of Power Generation UtilitiesExecutive SummaryResearch ScopeKey Findings Key Findings (continued)BestGreen Procurement, IT Implementation, and Inventory Management Best PracticesSustainable Procurement, Category Management, and Spend Management Best PracticesGlobal Procurement Evolution by Region Transformation of the Utility Sector—Challenging the Status QuoPower Sector—Present and Future OutlookChange in Industry DynamicsTimeline—Transformation of Utility Structure and Procurement PracticesRegulations and Privatisation—A Major Force in Changing Procurement Practices in Emerging EconomiesRegulation and Privatisation—A Major Force in Changing Procurement Practices in Developed EconomiesEvolution of the Procurement Function in the Utility SectorProcurement TransformationProcurement Transformation—Decentralised to CentralisedProcurement Transformation—Decentralised to Centralised (continued)Procurement Transformation—Decentralised to Centralised (continued)Role of the Chief Procurement OfficerProcurement Transformation—Tactical to StrategicProcurement Transformation—Tactical to Strategic (continued)Procurement Transformation—Tactical to Strategic (continued)Procurement Transformation—Tactical to Strategic (continued)Procurement Transformation—Tactical to Strategic (continued)Procurement Transformation—Local to GlobalProcurement Transformation—Local to Global (continued)Procurement Transformation—Manual to AutomatedProcurement Transformation—Manual to Automated (continued)Procurement Transformation—Manual to Automated (continued)Procurement Transformation—Unsustainable to Green ProcurementProcurement Transformation—Unsustainable to Green Procurement (continued) Challenges Faced by Procurement Teams of Power Utilities ChallengesChallenges Explained—Maintaining Supply Chain VisibilityChallenges Explained—Application of Strategic SourcingChallenges Explained—eProcurement and IT PracticesChallenges Explained—Vendor ManagementChallenges Explained—Vendor Management (continued)Best Practices—Case Studies Best Practices—Total IT InstallationBest Practices—Green ProcurementBest Practices—Green Procurement (continued)Best Practices—Green Procurement (continued)Best Practices—Inventory OptimisationFuture of Procurement in Power Utilities—PredictionsFuture of the Supply Chain—Revamping the Procurement Organisation StructureFuture of the Supply Chain—Revamping the Procurement Organisation Structure (continued)Introduction of ‘Should Costing’Supplier Integration and EmpowermentSupplier Integration and Empowerment (continued)Big Data Will Have a Big Effect on ProcurementConclusionConclusionLegal DisclaimerThe Frost & Sullivan StoryThe Frost & Sullivan StoryValue Proposition: Future of Your Company & CareerGlobal PerspectiveIndustry Convergence360º Research PerspectiveImplementation ExcellenceOur Blue Ocean Strategy




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