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Energy and Utilities
 All Energy and Utility companies face a constant pressure to meet tough challenges set by regulators on efficiency, cost reduction, and compliance, whilst investing to renew and enhance critical infrastructure.

 

Large capital investment programmes and efficient operational maintenance services are required to ensure continuous supply of services and excellent customer service.

Given the importance of large-scale capital infrastructure renewal, there is often difficulty in expanding the client’s influence and visibility across the extended supply chain. However, our experience in this area shows the risks that can be embedded in this supply chain and the value that can be unlocked through more effective procurement strategies and processes. Excellent procurement is thus crucial to meeting these challenges.

Efficio has sourced that majority of spend category many times, from complex capital expenditure programmes to operating expenditure, and has a deep understanding of the supply markets and cost-drivers as well as of the regulatory environment. Best practices are readily transferable across companies and sectors, enabling rapid improvement.

Value Generation

We recognise that procurement needs to be at the heart of driving cost efficiency in both Opex and Capex. We create value across the whole contract life-cycle from procurement strategy through contract and Supplier Relationship Management, encouraging innovation and fuelling continuous improvement in cost, quality and performance.

Efficio's rigorous process of identifying areas of improvement and obtaining best value from the market is considered to be market leading within the industry.

Ofwat review team of the Efficio AMP5 capital procurement project

Our expertise

Efficio has worked with many clients in the Energy and Utilities sector. Our achievements for clients include a two-year Procurement Transformation for an electricity grid company in the UK and US, generating £160 million of annualised savings from a £2 billion spend; a seven-year partnership with a water company, sourcing over £500 million per annum of Opex and a £7 billion Capex programme and achieving double-digit cost reductions against baselines; these figures are not just the result of intelligent sourcing. Efficio helps sustain performance by creating long-lasting transformations of skills and supply chain processes. We go deeper, to understand and tackle the root causes of inefficiency. We develop innovative procurement strategies, introduce new procurement operating models, re-engineer demand requirements and work hard to ensure new processes are truly embedded in the company.

Cutting-edge technology

Our work with Energy and Utility companies is supported by our technological abilities which support the entire procurement lifecycle.  For a number of infrastructure clients we have built a cost management application called OnTrack which helps manage the construction costs from demand forecasting right through to supplier invoicing. This solution not only ensures construction companies charge the right amounts but also creates demand forecasts which are notoriously hard to do in the Infrastructure sector. 

In addition to OnTrack,  our proprietary procurement platform eFlow allows Procurement teams to manage spend, run eSourcing events, manage contracts and manage performance all through a single application.

Efficio delivered a real step-change in our cost base: even the suppliers commented on the professionalism of the process. The team worked incredibly hard – and it was a great example of the ‘art of the possible’.

Efficio’s success in delivering both significant financial benefits and long-lasting transformations of skills and supply base performance have been recognised by many industry and professional awards as well as by clients.

Procurement must be properly thought through by water company alliances
Insight
Procurement must be properly thought through by water company alliances

Alliances often comprise companies who are otherwise fierce competitors, so procurement needs to be througt through properly, says Ian Bolger, VP at procurement consultancy Efficio.

Delivering a step change in procurement capability and capacity for Thames Water
Case study
Delivering a step change in procurement capability and capacity for Thames Water

Efficio helped Thames Water create a new operating model, a hybrid of classic consulting and outsourcing delivering outstanding ROI and enabling the client to significantly exceed its business targets.

Delivering £260m in cumulative savings  to National Grid
Case study
Delivering £260m in cumulative savings to National Grid

Efficio helped National Grid to transform its Procurement operations while delivering £260m in cumulative savings to the business.