What Energy & Utilities Can Teach Other Sectors About Supplier Risk
August 15, 2025

Utilities show how proactive supplier management can turn compliance and resilience into competitive strength.

Supplier networks are becoming more complex, regulated, and interdependent. Few sectors manage that complexity better than energy and utilities. Operating in environments where reliability is fundaemental to success, utilities have developed some of the most mature systems for managing supplier risk—systems that any organisation can adapt to strengthen delivery and resilience

1.  Embedding Assurance From The Start

In energy and utilities, supplier oversight is built into how the projects run. Cybersecurity, compliance, and reporting expectations are clearly defined during procurement, supported by data and evidence rather than paperwork alone.

Other sectors can apply the same approach by:

  • Setting verification requirements within contracts.
  • Using risk tiers to determine how frequently suppliers are reviewed.
  • Replacing one-time certifications with continuous data updates.

This creates clarity for both clients and suppliers, establishing a shared commitment to performance and accountability.

2. Building Resilience Through Everyday Planning

Energy operators plan for disruption as part of routine operations. Critical assets, logistics dependencies, and long-lead components are identified early, and alternative pathways are developed in advance.

Organisations in any sector can strengthen resilience by:

  • Pre-qualifying alternate suppliers for essential categories.
  • Standardising components to reduce dependency.
  • Conducting regular “what-if” exercises across key functions.

When resilience becomes part of everyday planning, delivery teams gain the confidence to adapt quickly and sustain continuity.

3. Advancing Readiness Through Collaboration

The utilities sector has long understood the value of cooperation. Many energy companies share spare parts, equipment, and field support through mutual-aid programs that enable rapid response during high-demand or recovery periods.

Similar models can work in other sectors through local partnerships, regional alliances, or industry frameworks. By planning shared readiness rather than isolated contingency, organisations strengthen collective capacity and improve overall delivery performance.

4. Linking Supplier Performance to Delivery Outcomes

Utilities treat supplier performance as a core measure of operational success. Data from maintenance records, asset systems, and project milestones is linked to supplier governance and renewal planning.

This alignment ensures that supplier performance influences real delivery outcomes—schedule, cost, safety, and quality. For other industries, embedding these links between contract management and delivery metrics enables earlier insights and stronger, evidence-based decisions.

5. A Stronger Model for Every Industry

The energy and utilities model shows that supplier risk can be managed as an opportunity to build stronger partnerships and improve delivery performance. By integrating early assurance, collaboration, and outcome-based governance, organisations can achieve greater resilience and reliability across complex supply networks.

At Galloway & Pierce, we support enterprises in applying these principles across infrastructure, government, and industrial programs, enabling suppliers, improving visibility, and ensuring that assurance translates into tangible results at every stage of delivery.

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