Global supply chain management excellence: Innovative strategies for success

The example above illustrates the intricate and global nature of supply chains in the high-voltage manufacturing industry. Behind every power line and transformer, there is a story of how a complex network of suppliers and manufacturers worked in synch to ensure a reliable and efficient supply chain. This blog will place the spotlight on the critical role of supply chain management (SCM) in this industry. We’ll explore how SCM strategies can enhance competitiveness, support sustainability goals, and ensure resilience in the face of global disruptions. 

Learn everything you need to know about SCM in the latest episode of the Power Pulse podcast. 

The complexity of high-voltage supply chains

The production of high-voltage equipment involves an intricate network of suppliers, component manufacturers and distributors, each playing a vital role in the overall process. Unlike consumer goods, high-voltage products require specialized materials, components, and manufacturing processes, making the supply chain more complex and demanding. 

Key roles of SCM in high-voltage product manufacturing

1. Strategic planning and optimization:

• Demand forecasting: Accurate demand forecasting is essential to ensure a steady flow of materials and components. Our team uses historical data, market trends, geopolitical events, and economic indicators to predict future demand.
• Supply chain network optimization: Optimizing the network involves determining the most efficient way to connect manufacturing facilities, warehouses, and distribution centers. This helps minimize transportation costs and lead times.
• Supplier selection and relationship management: Building strong relationships with suppliers is crucial for ensuring a reliable and consistent supply of materials. At Hitachi Energy we assess suppliers based on factors such as quality, delivery performance and alignment with our values. You can read more about Hitachi Energy’s Supplier Code of Conduct.

2. Risk management and resilience

• Risk identification and mitigation: High-voltage supply chains are exposed to various risks, including geopolitical instability, natural disasters, and economic fluctuations. We must identify potential risks and develop strategies to mitigate their impact.
• Disruption management: Having a robust disruption management plan in place is essential for ensuring business continuity in the event of unexpected events. This involves having contingency plans for sourcing alternative materials or suppliers.