Overview of the Renewable Energy Industry
The global renewable energy industry is witnessing a transformation towards a service-driven economy due to the recent technological improvements and environmental concerns. Additionally, at the fundamental level, rising population and energy efficiency improvements across the globe are influencing establishments to shift toward renewable sources of energy. As a result, firms within the renewable energy industry space are insisting on supplying energy with higher productivity and efficiency.
However, there are a few fundamental factors that are impacting the overall growth of the renewable energy industry. These factors include:
- Initial capital investments: Although the process of bringing about developments in the renewable sources requires a significant amount of capital investment, companies operating in this industry space are moving toward alternate renewable energy sources as most of the underdeveloped countries across the globe rely on fossil fuels for their everyday energy consumption.
- Heightened customer expectations: Companies across the renewable energy industry space are facing relentless pressures to maintain an affordable, secure, and reliable supply to the customers. As a result, firms are compelled to switch suppliers frequently to cater to the needs and demands of the target audience.
These factors are compelling firms in the renewable energy industry space to leverage the use of supplier profiling solutions. Supplier profiling solutions help firms in identifying and profiling the potential suppliers across the industry based on their strengths and weaknesses. These solutions also help companies increase their focus on supply management in terms of sourcing and procurement functions.
The Business Challenge and Journey
The client, a leading renewable energy industry player with business functions spread across the globe, wanted to leverage a supplier profiling solution to decrease procurement and excess inventory costs and deliver high-quality product and service offerings while enhancing economic opportunities. The client also wanted to identify the most profitable suppliers from a pool of suppliers and mitigate the risks associated with them.
The primary objective of the client was to seek ways to engage with the best suppliers and compare their offerings with that of the competitors.
To help the client address rising concerns and reduce supply costs, SpendEdge’s supplier profiling experts tailored a comprehensive research methodology. The research methodology included primary research coupled with qualitative and quantitative data collection procedures. The research methodology also comprised of interviews and discussions with leading procurement experts. SpendEdge’s supplier profiling experts also compiled information across a wide array of proprietary sources such as paid industry databases, company presentations, and industry forums to profile potential competitors.
During the course of this supplier profiling engagement, the renewable energy industry client identified the high-performing and low-risk suppliers and service providers to regulate costs associated with compliance. The client was also able to profile the suppliers better, based on their performance and efficiency, and gain improved visibility into the supply chain process. This helped the client improve cross-functional collaboration to endure collaborative partnerships with key suppliers.
Fundamental questions answered in this supplier profiling engagement include
The supplier profiling engagement helped the client differentiate the suppliers based on their categories and the quality offered. The client was also able to successfully evaluate supplier performance in terms of the risk management, cost management, and operational improvements.