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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This content is provided by Galloway & Pierce for general informational and reference purposes only. It reflects our role as a supplier intelligence, information management, and reporting firm and is not intended to constitute legal, procurement, compliance, commercial, financial, or investment advice, nor should it be relied upon as a substitute for consultation with qualified professional advisers. The information presented may include commentary, synthesis, or contextual interpretation based on publicly available sources, supplier-provided data, regulatory materials, industry publications, or third-party information believed to be reliable at the time of publication. Galloway & Pierce does not independently verify all third-party data and makes no representations or warranties, express or implied, regarding the accuracy, completeness, or timeliness of the information. Galloway & Pierce does not provide assurance, certification, audits, risk ratings, performance scoring, or determinations of compliance. Any reference to supplier diversity classifications, ESG metrics, local content measures, or compliance frameworks is provided for informational and reporting purposes only and does not constitute a formal assessment or endorsement. Nothing in this content should be interpreted as an endorsement, recommendation, or validation of any supplier, organisation, technology platform, strategy, or operational approach unless explicitly stated. Examples and scenarios are illustrative only and do not represent actual client outcomes unless otherwise specified. Galloway & Pierce does not act as an agent or fiduciary on behalf of any party unless expressly agreed through a signed engagement contract. Readers are responsible for conducting their own due diligence and seeking appropriate professional guidance before acting on any information contained herein. Any reliance on this content is at the reader’s own risk. Unless otherwise stated, this material is proprietary to Galloway & Pierce and may not be reproduced, distributed, or reused without prior written consent.
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