Supply Chain Opportunities in Renewable Energy

Having recently attended numerous supply chain events I’m struck by the energy and enthusiasm for our greener industrial future. But how realistic is it that smaller, local businesses will get to take advantage of the opportunity?

A number I’ve heard repeatedly is 50%. 50% of supply will, ideally, come from local suppliers. That’s an admirable aspiration but is it realistic? Would smaller, local organisations really be in with a shout of this much business, or, when the tenders are finally awarded would the big boys gobble it up? Secondly, if smaller local companies are awarded the business, have they got the capability to deliver?

Let’s assume the answer to both these questions is yes, then how do north east based organisations prepare themselves for this opportunity? The best place to start is to understand what are the Tier 1 suppliers wanting from their supply chain? Not in terms or products and services, but in terms of a partner relationships.

I think a good starting point is to remember that Renewables is a relatively infant industry. Relationships are new, needs are new, technologies are new. This will undoubtedly create a need for a greater number of relationships with new suppliers as opposed to relying on established networks. And these specialist industry’s require support from the smaller, often local, specialist, innovative and dynamic supply networks at the expense of the giant generalists.

In many of these growth industries there is clearly a move toward to a manufacturing mindset with an increased emphasis on standards such as ISO 9001 delivering process benefits. Larger suppliers can rely of economies of scale to maintain their costs and margins. Smaller organisations often do not have this luxury and so will not be permitted allow process inefficiency to hinder their competitive tenders.

With highly efficient, competitive, innovative and dynamic local businesses able to react to the burgeoning green opportunities all indicators point to a successful future for SME’s.

iqms Learning can support your organisation in ensuring processes deliver value and empower your staff to challenge and improve performance. 

Call us today on 0191 5166 191.