IT revamp improves energy supply chain

British Energy is turning to IT to support plans for an overhaul of its supply chain strategy and to boost reliability as part of a business transformation project.

The utility company operates nine nuclear and coal-fired power stations and is improving its supply system to extend their lifespan and help meet environmental targets.

With a supply budget running at about £500m per year, British Energy has brought in IBM to help develop the new strategy, building on an existing four-year programme already being undertaken by the IT giant.

Before work began on the overhaul, British Energy’s supply base was not segmented, and the company did not properly manage suppliers, says John Sexton, the firm’s head of supply chain.

‘We lacked demand planning and early forecasting. Altogether our working capital could be significantly improved,’ he said. ‘There were also issues of organisational capability, and a lack of exploitation of the systems.’

British Energy’s supply chain systems have already been improved by the partnership.

IBM has helped the firm to better exploit business technology in areas such as procurement and asset management, by improving the use of data to help make more informed decisions.

The business transformation project is also looking at what British Energy can do to help further improve the supply chain.

The IBM deal will involve supporting the power company’s supply chain for the next 15 years, says Sexton.

‘Our top priorities are safety, quality, time and then cost; we are looking for total value packages,’ he said.