Published Article

Now More than Ever: 
The Case for Alliance Partnerships

July 2009


By Parvez Patel and Robert Zabors

In recent years (now known as ‘the good old days’) as utilities focused on capital projects to meet projected load growth¹, managers of supply chains faced a two-front battle — investing in growth while managing existing assets.

They faced a difficult set of challenges:

  • Increasing supplier power due to labor shortages and consolidation of service & materials providers
  • Rising fuel costs that increase parts and service costs
  • Volatility and increases in commodity prices, as global markets forecasted tight supply and increasing demand, driving up costs for key components in generation, transmission and delivery
  • Aging infrastructure and aging workforce
  • Stricter compliance while facing uncertainties of future regulation and technologies (e.g. Smart Grid)

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