Utility Industry Consulting
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How do you balance the goals of the utility and its contractors? Shouldn’t the utility expect their projects to be executed safely in the field, completed on time and within budget while meeting or exceeding all quality requirements? Is it unfair for a contractor to desire wider visibility of future work and achieve an acceptable return for the risk they are taking? Enter supply chain risk management for the utility construction industry. 
FMI has expertise working with both gas and electric utilities and their suppliers to help all parties understand and mitigate their construction risks. These risks impact the costs, performance and predictability of the overall construction supply chain from the utility customer down to the supplier of construction services. Utility construction supply chain risks are measured in three categories: Market risks, credit risks and operational risks. The nature of construction requires a close look at supply chain strategy for this category of spend. A single strategy is ineffective for all construction types (e.g., main replacement vs. meter exchanges) given the different types of risks encountered. Applying selective sourcing, contracting and management tactics based on the type of work has proved effective at reducing overall risks and increasing the profitability of suppliers and the utility where construction capital spend is significant relative to revenues. For more information on FMI's services for utilities and their suppliers, contact: |
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