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IT ADVICE


Specialist IT


The Directors are left to right Peter Scorer, Operations Director, Zack Hodge, Managing Director, Mike Gordon, Sales & Marketing Director.


The most noticeable change has been the introduction of IT with the market being bombarded with faster and more comprehensive systems to improve the efficiency of their supply chains from procurement to customer relationship.


Management teams have had to wrestle with the decision of whether or not to invest in software and from Chris’s experience in the markets of Europe, the Middle East and S.E. Asia, many have been finding it very difficult to decide on which systems will meet their business needs. Realising that procurement and supply chain management is one of the few remaining untapped opportunity areas for improving business results, some companies are focusing on procurement transformation and in an endeavor to move a function that is reactive and administrative to being a strategic contributor to the bottom line.


Procurement is well supported by many software developers in respect of General/ Indirect/MRO purchasing but procurement in the capital projects environment has been very considerably neglected. There are very few developers dedicated to supporting Procurement within Projects. This sector of industry, which spends enormous sums of money, is proliferated by legacy systems and spreadsheets. Project management deserves more from the procurement function.


It is common for capital projects to be blighted by


• Financial overruns • Time overruns • Claims • Conformance problems • Poor traceability • Delay of the project completion


How many of these issues can be attributed in any way to procurement and the supply chain?


Capital projects in the energy industry require major investment, whether wind, oil and gas, tidal or solar, and the project completion date, in addition to these other issues has a major impact on the viability of the project as return on investment can only start when the “plant” is reliably operational and generating income.


Wind energy projects would benefit enormously from avoiding the commonly experienced downside of procurement in capital projects by adopting a systematic approach. They can also reap the additional benefit of a structured process to ensure that successive projects benefit from the accumulated knowledge.


Korecentric Ltd www.korecentric.com


Chris Jones, Chairman


Wind Energy NETWORK


47


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