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: