A national power utility company was witnessing a significant demand surge owing to unprecedented growth in both the residential and commercial sectors. In a state of flux resulting from a recent integration, the company was experiencing materials availability issues, which were detrimental to its ability to connect new customers in a timely way.
Strategy& was tapped to help improve distribution service levels through radically improved materials availability. The Strategy& team of supply chain experts conducted a thorough bottom-up analysis of the company’s supply chain and developed three main recommendations. First, a robust material planning mechanism was put in place that combined analytical forecasting with proper coordination between the distribution and supply chain teams. Second, the purchasing process and supply base were rationalized to reduce the purchasing lead times. And finally, inventory control practices such as setting and monitoring min-max and reorder point levels were reinstated.
By the end of the project, the client was given a detailed implementation plan including a series of quick wins to yield early results.
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