Citation:
Smart, Alan, Exploring supply chain opportunities in the UK utilities sector and the supporting role of eMarketplaces, Supply Chain Management: An International Journal, Sep 2005 Volume: 10 Issue: 4 Page: 264-271.
Abstract:
Purpose - Since the privatization of UK utilities, few studies have examined
supply chain management (SCM) in the sector. This paper aims to investigate the
state of development of the SCM concept and the role of the emerging internet-
based electronic marketplaces in supporting this. Design/methodology/approach -
Using a case study method, interviews were conducted with managers in seven UK
electricity and water utilities. Areas explored are the firms' supply chain
priorities, how eMarketplaces can support their supply chain goals and the
barriers to adoption of eBusiness solutions. Findings - The research reveals a
strong orientation in both the electricity and water industry firms towards
controlling cost inputs. Consequently, their focus is on managing procurement as
the primary supply chain activity. The key barriers to eBusiness adoption
identified are the problem of providing genuine benefits to suppliers, and the
technical difficulties of marketplace implementation. Research limitations/
implications - This is an exploratory study of the domain and further work in
this area needs to focus on how utilities will develop their supply chain
competences and how eBusiness solutions can support them. Originality/value -
The research concludes that operators of electronic marketplaces have not yet
delivered a convincing case for wider participation in management of the supply
chain online. A stronger SCM orientation will need to emerge in utility firms
before that can occur.