A clear vision and engaged supply chain can deliver
significant efficiency savings
The opportunities to make real cost
savings and drive efficiency are significant and can be up to 25%.
This approach has already borne fruit with clients as diverse as
the Water Utilities, Oil and Gas companies, Property Developers and
Infrastructure Authorities.
To meet this challenge the whole sector, including the supply
chain, must be aligned in its vision and approach to maximise the
opportunity. We find there are some key attributes which, only when
implemented together, enable efficiency and cost savings to be
fully maximised. The key factors are:
- An aligned vision and strategic business objectives within the
Offshore Wind Sector
- Clear visibility of the programme / project of works
- An operating model and organisation structure that is aligned
to the delivery challenge
- A supply chain that is aligned to the delivery
requirements.
Vision and objectives
Stakeholder alignment with the overall vision and objectives is
necessary to drive accountability and ownership. To make this truly
effective an organisation needs to ensure that there is agreed
leadership in place, with appropriate governance to keep focus plus
clear and strong sponsorship at board level.
Programme / project visibility
Programme and project visibility defines exactly what you need
to deliver as a business and defines the operating model and supply
chain requirements. Without this in place we often see
organisations that have significant wastage around their supply
chain and overhead costs.
Operating model and organisation structure
A clear understanding of the vision and the strategy is crucial
to designing the right organisation and to understanding the
journey required to get organisations to where they want to be. The
operating model will define the following:
- An organisation structure, including future processes,
capabilities and systems
- A governance structure
- Roles, responsibilities and job profiles
- A clear route to transitioning to the new organisation.
The optimal operating model aligned to the delivery requirements
of the organisation will enable the right levels of control and
governance around key functions such as planning, procurement, cost
and commercial management.
Supply chain
Within the Utilities / Power Sector the majority of an
organisation’s spend is on its end to end supply chain; therefore a
supply chain which is aligned to the organisation’s objectives and
deliverables is key to optimising delivery and avoiding unnecessary
costs.
Supplier engagement is also key and can lead to further
reduction in costs, standardisation in design, driving innovation
and reducing waste and driving performance improvement.
Download
the 'Efficiency savings' article [130 kb]
Paul Stapleton,
Partner, Head of Energy & Manufacturing
t +44 (0)1642 343 441
Email Paul
Stapleton
"The offshore wind industry has a fantastic opportunity to deliver
higher margins through cost reductions. However, with the sector in
its infancy compared to others such as Oil & Gas and Utilities,
it will require a major step in efficiency to gain parity and
maximise the opportunity."