To meet the current financial challenge, utility leaders should broaden their focus to include other business functions – such as inventory optimization – that are contributing to the rising operations and maintenance (O&M) spend.
Overall Goals: Eliminating unnecessary inventory, reducing expediting costs, and lowering warehouse spoilage while maintaining high parts availability
Targeted Savings: $10+ million over time and $100+ thousand to $1+ million annually (with 95+ percent parts availability) per station
Based on StrategyDriven’s experience, $100+ thousand to $1+ million in annual savings, $10+ million over time – and improved safety and reliability – are available to nuclear utility operators in the near-term through the implementation of contemporary market-based business practices in the inventory optimization area including:
- Aligning Work Management and Supply Chain goals to promote overall station success
- Fully integrating the Work Management and Supply Chain functions
- Correcting inflated parts inventory stocking logic
…and numerous others!
Download Four Overlooked Controllable Costs to receive StrategyDriven’s complete list of $1+ million cost reduction opportunities in the areas of:
- Human Capital Management
- Information Technology
- Supply Chain / Inventory Management