What is supply chain management?

The planning and administration of acquisitions, conversion, and logistics management operations are all part of supply chain management. It also handles with the coordination of all parties (from suppliers to customers). It deals with demand management inside a corporation in this manner.

What steps can we take to identify and reduce waste in our supply chain strategy?

The first step is to examine existing processes and determine where waste is still an issue. You may, for example, compare the things you buy to your outcome to prevent expenditures. Talking to relevant managers or operators or solicit further feedback from customers or service suppliers.

What is a global supply chain?

Global supply chains are networks that cross continents and nations to source and distribute goods and services. The mobility of information and resources is one of the most important foundations.

Where do risks exist in supply chain management?

Internal risks (those under your control) and external risks (those that are beyond your control) coexist. In this regard, the following sorts of dangers are identified: Financial hazards Poor planning Regulations Environmental Socio-political Human behaviour

What is procurement in the supply chain?

One of the various branches of the supply chain is procurement. It serves as a structure for a firm to efficiently carry out all of its daily activities, monitoring the outcomes and assessing how the items that will be provided to the clients are made.

What factors contribute to the success of a supply chain?

A good supply chain must have three components: flexibility, data, and long-term planning. In this regard, some of the aspects that impact its correct operation are as follows: Maintain your adaptability. Trust data and technology Plan for the future Remember who is your end customer

What are the benefits of supply chain management?

In a nutshell, it facilitates and improves the movement of products, information, and commerce. Companies benefit from an optimised and efficient business, building better ties with partners and customers.

Why is supply chain planning so important?

Planning in the supply chain helps to simplify operations, enhance productivity, eliminate wasteful spending, and build stronger client relationships. Planning, when done effectively, may assist decrease costs associated with purchasing, manufacturing, inventory management, and transportation.

How can we gain a better understanding of our supply chain costs?

Data analysis is an excellent tool for anticipating and determining where we need to improve. For example, it assists us in optimising warehousing and storage, which is essential in a bigger supply chain strategy. This allows us to optimise space, decrease damage, reduce packing, and do a variety of other things.

What obstacles do organisations experience when attempting to improve SCM?

The supply chain is a difficult process in and of itself, and adding innovations is a problem for businesses. It's critical to move fast and to balance rising customer demand with competitive pricing. In this regard, procurement may also assist to determine whether parts of the supply chain are not competitive or to set more ambitious goals.

Benefits of Procuring Distributed Energy Resources

Distributed energy resources (DERs) are the players who are now making waves in the electrical energy market. These distributed renewable energy resources emerge as potential protagonists in the energy landscape's paradigm shift.

But what exactly are they, what are their challenges, and what advantages do they provide? Today, we'll explain why you should include them in your procurement strategy.

DERs, the growing green answer?

As the podcast The Energy Gang puts it... we invented Uber for taxis, so are DERs the answer for utilities? According to Sam Uyeno, senior manager in West Monroe Partners' energy and utilities practise, utilities will need to consider how to leverage new customers within their network. Similarly, to how Uber entered the taxi market and allowed anyone to become a driver.

Given the current energy crisis, carbon emissions, and global warming... green energy provided by DERs is gaining traction in smart grid design. Depending on the kind, they may generate, store, and even regulate energy usage. All of this while reducing environmental effect, lowering technological costs, and improving adaptability to changing government laws.

“Distributed energy generation is expected
to provide over 65,000 MW by 2024”

In this sense, a variety of causes are driving the expansion of DERs:

Low cost of technology. Solar panels, for example, are becoming more common and less expensive to produce.
Businesses are becoming more conscious of their environmental effect and are seeking greener solutions.
Government policies require businesses to minimise their emissions.

Taking these considerations into account, the Federal Energy Regulatory Commission predicts that distributed energy generation will provide over 65,000 MW by 2024. In this manner, they're offered as an energy commitment that businesses who wish to integrate it in their procurement plan should evaluate.

“Low technological costs, minimal environmental impact,
and government legislation
are among the primary drivers of DER growth”

Among the types of distributed energy resources, we find solar panels, wind turbines or electric vehicles (EVs), as well as natural gas generators, biodigesters, small hydro and battery storage. Demand response solutions, solar photovoltaic (PV) assembly, and batteries are all examples of distributed energy systems.

Because of their low environmental effect and long-term viability, DERs may be in highly inhabited areas. As previously stated, domestic energy storage devices may be found in residential cores. A community area's DERs together may generate enough electricity to operate city lights, hospitals, and police stations.

Challenges and strategies, finding harmony

The adoption of this form of infrastructure, of course, creates a slew of concerns. Some of the problems that DERs bring for utilities vary from revenue decreases to concerns about dependability and resiliency in the transition away from baseload power sources.

According to Peter Bryant, managing partner of Chicago-based Clareo (via POWER), “The current regulatory environment for regulated utilities doesn’t support the new business model. The financial reward model is not conducive to regulated utilities pushing distributed energy."

"There is a lot of utility interest in
working with companies like ours"

However, methods of bridging the gap between the two worlds are being developed. Distributed energy resources companies such as EnergySage told POWER that "there is a lot of utility interest in working with companies like ours to effectively meet customer needs." Because customers desire greater freedom of choice and utilities are aware that they may generate more income by providing more transparent information... "Utilities are suggesting, 'Why don't you buy those products and services from us?'"

Benefits, the paradigm shift

When it comes to DERs, there are several advantages. From cost savings for customers to carbon reductions by committing to clean energy... to avoiding massive infrastructure projects.

Five other advantages are:

Energy at a lower cost
System capability
Reserves for operations
Capacity for distribution
Complementary services

Energy at a lower cost

DERs assist businesses in reducing energy costs by eliminating missed line losses. This is done because the DER's energy value is realised when it eliminates the need to generate energy from another source. The energy value is made up of two components: resource output and the mentioned reduced losses in transmission and distribution lines.

System capability

DERs aid in the reduction of power outages and voltage fluctuations on distribution feeders. They may control energy production and consumption via distribution networks, allowing businesses to avoid investing in producing and transmitting equipment.

Reserves for operations

DERs have an operational reserve value that may be utilised to either boost or decrease grid demand. This function serves as a lifeboat during forced outages or crises. Particularly effective techniques of lowering peak demand include battery energy storage devices, backup generators, and demand response resources.

Capacity for distribution

Because DERs are placed near cities, utilities don't need to install a new transmission line when local demand grows. DERs are highly regarded due to their capacity to reduce transmission and distribution constraints.

Complementary services

Utilities use auxiliary services to deliver the necessary quality of service. If a frequency variation is recorded, it can be restored to its previous value by increasing or decreasing the quantity of grid electricity. When it comes to rectifying this irregularity, DERs respond quickly. Batteries can solve the problem in milliseconds, but a large thermal plant would take many minutes, for example.

Here to help you

If you want to learn more about the benefits of DERs for your organisation, contact our team of experts at Refteck Solutions. We have clients from many industries, including oil and gas production, energy, gas treatment, refining, petrochemical processing, and many more, and we have over 15 years of expertise in procurement and supply chain management. We provide solutions that are extremely inventive, strategic, and cost-effective.