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SUPPLY CHAIN ANALYSIS WITH CLP 11
Supply Chain Analysis with CLP
Abstract
The company CLP has business in Asia and is known for its energy business. The strengths of company are analyzed in terms of its supply chain ability and practices that commensurate with the global supply chain practices. It is found that company has done well on various fronts to manage supply chain such as developing good relationship with the suppliers and partners and other stakeholders. It has fostered a relationship of trust and this is evident with the success factor of company. Company has adopted the practices such as wide supply chain management, agile manufacturing and lean inventory management, time horizon management, suppliers’ relations. It has fostered communication with the supply chain partners, and provided them necessary training to manage resources. The supply chain management of company is aligned towards the business objectives of the company and CLP takes into account of safety management initiatives as well. CLP also promotes sustainable development initiatives for supply chain management that covers environmental resources optimum use, conservation and waste disposal. Overall the findings reveal that CLP Company has achieved excellent success in managing its supply chain network.
Table of Contents
Introduction    4
CLP analysis    5
Literature review    9
Discussion    14
Conclusion    16
References     17
Introduction
The report illustrates about the CLP organization supply chain management initiatives. These initiatives are compared with the standard practices of supply chain management by other companies. It identified the loop holes and strengths of the CLP organization supply chain practices and recommends suggestions for improvement in supply chain management process of CLP. CLP is an energy supply company functioning in the Asian market. It has a robust supply chain management system as the company claims. It has a wide presence in the Asian market. Company has good presence in energy sector. It also adopts various sustainable practices into its supply chain that is explored in analysis of company.
CLP analysis
According to the information furnished by the company, it provides one of most reliable electricity service facility to the customers in the world and achieves 99.999 % reliability. The company offers information that reveals that customers experience an average of 1.5 minutes of power interruptions per year between 2013 to 2015 that was unplanned and this is significant achievement by company.
CLP deals with the challenges of operating the system efficiently with incremental improvement in the asset management procedures, international best practices introduction and improved operational processes across all parts of the electricity supply chain.
The emergency preparedness by the company reveals that its staffs are available 24 hours to respond emergencies. Company conducts regular drills across the business units for monitoring of system efficiency, communication efficiency and coordination effectiveness. CLP also has a robust system for vegetation management and for this purpose; it has set up a task force in the year of 2001. CLP uses the live line work technique that is a well developed method, to minimize the planned and unplanned interruption time. This technique as the CLP states provide better and flexible maintenance and repair schedules that enhances the customer’s satisfaction and efficiency of work. To ensure the power quality, CLP uses sophisticated equipments as well as best practices in its operations. There is an issue of over head lines that malfunctions in case of typhoons and lightning strikes and therefore CLP takes into account of vegetation management as well as installment of lightning protection. CLP also provides customers a wide array of the power quality services specific to customers’ needs to assist them in maintaining their sensitive equipments during voltage fluctuation.
Its annual report suggests these issues that company faces. Safety is found to be a critical challenge for company. The company safety metrics show improvement and still there were three contractor fatalities occurred in the year of 2016. All these fatalities occurred in different sites. The reported countries are china and India and therefore company considers that there should be greater focus towards training and awareness for safety measurement. Company identified that there are scope for improvement in risk identification process and procedures implementation for risk mitigation.
The major construction projects were being delayed as the company reported and this is the major concern for the company. Company intends to look for the root causes to mitigate risks factors associated with projects. Company has promoted sustainable development initiatives for production of energy and supply of energy to the customers. Company has started initiatives for renewable assets to minimize the footprints of operation of company on environmental resources. In HongKong, company has made progress to reduce the carbon intensity. In Australia, company has target to produce 500MW electricity through the renewable energy resources.
Asset management is a key for enhancement in process and minimization of cost. Therefore company has introduced proficient operations as well as effective maintenance. It has operational readiness achieved. Company considers towards contractor management, outage management and industry optimization. It focuses towards operation and mobilization and maintenance of resources in acquisition phase. After the use of products, it also makes certain for safety disposal of them. The example cited by company reveals that in Hong Kong company has improves the gas turbine systems and increased the capacity. Company has successfully refurbished the hydro stations. The extension of tow ultra supercritical units was completed. In the Australia, company has successful removed the disposition and improved the capacity and efficiency.
Performance wise company has achieved these feet. Set of globally recognized supply reliability performance metrics are used by the company. System average interruption frequency was experienced by a customer reveals a score of 0.18 in 2014-2015. The three year rolling previous average was 0.17 and there was slight increase of interruption in electric supply is experienced by the customers. The system average interruption duration index was 0.35 hours in comparison of 0.39 hours in past and this revealed enhancement in electricity supply.
Company has focused towards continuous development in supply of energy. There are some examples stated by company annual report. Company installs on line condition monitoring system, reinforcement of towers for 400k overhead lines, and conducts regular reviews of network performance. Company has prepared staffs for emergency situations. For distribution of the electricity company completed the reinforcement projects, finished installation of system to mitigate threat of flood damage, integrated vegetation management system was established, and conducted regular checks to ensure the contingency plan application.
The e-procurement strategy of company reveals sustainable developmental initiatives as it ascertains that suppliers selected must have ethical practices and committed towards sustainable development. The products and services offered by the suppliers must be of high quality. CLP always targets for acquiring best products and services from suppliers.
Company has promoted a collaborative approach to work with suppliers. It engages actively to promote the capabilities of suppliers. The supplier’s assessment mechanisms have confirmed that there was no significant RePPS risk in the year of 2016. The suppliers’ relationship was not terminated due to the assessment and monitoring findings. Company purchased the products from local suppliers thus promoting the local...