The Utility is responsible for directing and overseeing over $241M annually in Operating and Capital procurement spend where the price, product applicability and value of goods and services, along with the efficiency of the procurement process have significant financial and operational impacts. Where the procurement process is inefficient or when the best value for goods or services is not received our limited financial and staff resources are wasted. Due to the critical operations of the Utility, supply chain delays or breakdowns are not only costly, but can negatively impact the delivery of services or result in regulatory fines. Specific examples of procurement risks include: higher prices from a less competitive market; supply chain delays or interruptions; vague or inaccurate specifications resulting in a product that is inferior or mismatched to the operational need; inventory levels not optimized; long lead times for securing necessary contracts with vendors; continued use of underachieving vendors or products; inaccurate quantity estimates resulting in re-contracting costs; procurement errors and delay; and overuse of specific vendors and lack of supplier redundancy resulting in risky supplier dependency. The Utility also currently operates under a decentralized procurement model where issues arise because of lack of coordination between the divisions. Accomplishing this initiative will improve process efficiencies and could improve the price and quality of goods and services for the Utility.
WTR.3.2 Enterprise Resiliency
