The energy sector is under intense scrutiny with wholesale energy prices rocketing and pressure to
move away from fossil fuels to a more sustainable, green energy. The impact of the Russian-Ukraine war and the COVID-19 pandemic on global supply chains was largely out of the industry’s control but the need for resilience has hit organisations in this industry more than ever.
In our most recent LinkedIn poll, we asked our social media followers their thoughts on the supply chain future, specifically what they thought the biggest supply chain issue was in the energy industry in 2022.
Supply chain of the future: What we found
Of those that responded, 33% cited unpredictability as the joint biggest issue in the energy industry supply chain in 2022.
Most organisations are keen to build as much resilience as possible into their supply chains to help with the pressure of fluctuations. However, the rate of change driving the energy transition is difficult to keep up with. With increasing costs, the importance of oil and gas is unknown. With climate change activism, enhanced news coverage and government intervention it’s unknown what is next for the energy issue and how it impacts the supply chain.
Government energy regulations
The second joint highest response with also 33% is government energy regulations.
With increasing public expectations and interest in the environment there is an increased demand for environmental regulations within the energy industry, pushed forward by the government. As the covid pandemic, and record breaking heat in the summer of 2022 heightened public awareness organisations will need to brace themselves for upcoming regulations, to implement these within time scales set out externally, at unknown cost.
Changes in energy production
22% of respondents highlighted changes in energy production as their biggest challenge of 2022
Energy transition is the global energy sector’s shift from fossil-based systems of energy production and consummation to renewable energy sources like wind and solar. As the world begins to set deadlines to the carbon zero initiative. Organisations need to follow closely behind as the changes to energy production happen.
Finally, 11% highlighted ‘other’ as what they thought the biggest supply chain challenge facing the energy industry in 2022 would be.
This could be global supply chain visibility. Without centralised visibility and management, blind spots become unpredictable and projects become subject to disparate processes across multiple vendors, this puts heightened strain, both for cost and time, on organisations operating in this industry.
One things for sure within the next year, budgets will become tighter. From polysilicon used in solar panels to aluminium to freight charges. These are adding pressure to the profitability for organisations. Unexpected costs when projects don’t go to plan, such as parts arriving late can also erase profit margins.
B2BE’s experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. To engage with B2BE and offer feedback on what matters most to you and your business, make sure to follow us on LinkedIn and across social media. You can also vote in our latest LinkedIn poll. If you’d like to discuss your future supply chain strategy, get in touch with us.