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| Author: | Handfield, R.B. |
| Title: | The impact of energy deregulation on sourcing strategy |
| Journal: | Journal of supply chain management
2004 : SPRING, VOL. 40:2, p. 38-48 |
| Index terms: | Supply chain management Energy industry Deregulation Strategy USA |
| Language: | eng |
| Abstract: | In 1999, supply researchers predicted that deregulation (hereafter as: dereg.) would change the landscape for the purchasers of energy. The research aims to determine the nature and direction of the predicted changes in energy sourcing (here as: erg-src.) behaviour. Based on detailed interviews with managers, government officials, and lobbyists, the risks and rewards (here as: rs-and-rw.) associated with recent events in dereg. are examined and analyzed. Next, a detailed process for developing and implementing an erg-src. strategy for commercial businesses considering these rs-and-rw. of alternative erg-src. channels is developed. This is followed by a process involving aggregating data, obtaining support, defining risk tolerance, and spending parameters that involved stakeholders, evaluating proposals, executing the strategy and monitoring it over time. Finally, insights into the future trends in dereg. energy markets are described. Results suggest that a focused approach to developing detailed supply market intelligence can assist sourcing managers in preparing for the dereg. era and achieve significant cost savings in energy spending. |
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