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# Supply Chain Security, Resilience & Emerging Industry Trends
= Supply Chain Security, Resilience & Industry Trends =


## Executive Summary
[[File:Supply Chain Model.png|thumb|right|900px|EPRI Supply Chain Model<ref>[https://www.epri.com/research/programs/112046/results/3002012753 EPRI Supply Chain Assessment Research Program]</ref>]]


Supply chains have become a strategic risk area for electric utilities and critical infrastructure operators. Recent industry assessments have identified risks associated with globally sourced Inverter-Based Resources (IBRs), Battery Energy Storage Systems (BESS), software supply chains, and increasingly interconnected vendor ecosystems.
== Executive Summary ==


At the same time, organizations are investing heavily in technologies that improve visibility and resilience, including Artificial Intelligence (AI), Supply Chain Control Towers, Digital Twins, and enhanced supplier risk monitoring capabilities.
Supply chains have become a strategic focus area for utilities and critical infrastructure operators. Globally sourced hardware, software, and connected technologies introduce cybersecurity, operational, and geopolitical risks that can impact reliability, resilience, and business operations.


### Why This Matters
At the same time, utilities are investing in advanced visibility and decision-support capabilities including Artificial Intelligence (AI), Supply Chain Control Towers, Digital Twins, and supplier-risk monitoring. These capabilities help organizations improve situational awareness, identify disruptions earlier, and strengthen long-term resilience.


Modern utility and energy-sector supply chains are increasingly:
{| class="wikitable"
|-
! Area
! Potential Impact
|-
| Reliability
| Equipment shortages, supplier outages, and logistics disruptions can affect maintenance schedules, project timelines, and grid modernization efforts.
|-
| Cybersecurity
| Third-party technologies may introduce new attack surfaces, software vulnerabilities, and unauthorized access pathways.
|-
| Operations
| Limited visibility into suppliers and dependencies can delay the identification and resolution of operational disruptions.
|-
| Resilience
| Organizations require the ability to anticipate, withstand, and recover from changing operational, geopolitical, and market conditions.
|}


* Digitally connected
----
* Globally distributed
* Dependent on third-party suppliers
* Exposed to cyber and geopolitical risks


As a result, disruptions originating from suppliers, software providers, logistics partners, or overseas manufacturers can directly impact operational reliability, cybersecurity posture, and business continuity.
== Key Supply Chain Risks ==


### Key Industry Priorities
=== Technology & Asset Assurance ===


* Supply Chain Cybersecurity
Recent industry assessments have highlighted the importance of understanding communications protocols, data flows, vendor connectivity, and remote access capabilities associated with modern energy technologies.<ref>[https://msites.epri.com/spn/research/112046/security-design-architecture-review%3A-solar-inverters EPRI Security Design Architecture Review: Solar Inverters (3002029720)]</ref>
* End-to-End Supply Chain Visibility
* Supplier Risk Management
* AI-Enabled Decision Support
* Supply Chain Resilience & Diversification
* Secure Procurement & Asset Assurance
 
[[File:Supply Chain Model.png|thumb|right|900px|EPRI Supply Chain Model]]
 
---
 
# Industry Context
 
Historically, supply chains were primarily viewed as procurement and logistics functions. Across the utility and energy sectors, they are now recognized as critical operational systems that directly influence reliability, regulatory compliance, cybersecurity, and grid resilience.
 
Industry organizations such as EPRI, DOE, NERC, and major utility operators continue to increase focus on supply chain assurance due to concerns regarding:


* Hardware provenance
Examples include:
* Software integrity
* Third-party access
* Remote communications capabilities
* Geopolitical dependencies
* Critical component availability
 
Organizations are therefore shifting away from cost-focused procurement strategies toward risk-informed supply chain management programs that improve visibility, resilience, and operational assurance.
 
---
 
# Key Supply Chain Risks
 
## Hardware & Technology Assurance Risks
 
Industry assessments have identified instances where deployed equipment contained capabilities not fully represented in product documentation or utility inventories.
 
### Examples


* Cellular communications modules
* Cellular communications modules
* Wi-Fi connectivity
* Wi-Fi connectivity
* Bluetooth interfaces
* Bluetooth interfaces
* Remote management functionality
* Vendor remote-access capabilities
* Maintenance access ports
* Undocumented communications pathways


### Why It Matters
'''Why It Matters'''


For utilities and critical infrastructure operators, undocumented capabilities can create uncertainty regarding:
For utilities, uncertainty surrounding deployed technologies can complicate asset management, cybersecurity monitoring, incident response, and overall operational awareness. The challenge is often less about a specific technology and more about understanding exactly what has been deployed and how it communicates.


* Remote access pathways
=== Software Supply Chain Risk ===
* Asset inventory accuracy
* Network trust assumptions
* Security monitoring coverage
* Incident response planning


For example, an undocumented cellular modem could allow communications pathways that bypass traditional network monitoring controls.
Modern utility operations depend on software vendors, cloud providers, embedded firmware, open-source components, and third-party integrators.


### Industry Response
A compromise of a trusted software supplier can potentially affect multiple organizations simultaneously. As software ecosystems grow increasingly complex, visibility into software dependencies becomes more important.


Organizations are increasingly:
EPRI's Technical Assessment Methodology (TAM) emphasizes evaluating attack surfaces, identifying security gaps, and validating security controls throughout technology deployments. <ref>[https://www.epri.com/research/programs/112046/results/3002021184 EPRI Technical Assessment Methodology (3002021184)]</ref> <ref>[https://www.epri.com/research/programs/112046/results/3002017149 EPRI Technical Assessment Methodology (3002017149)]</ref>


* Performing hardware validation assessments
=== Geopolitical & Supplier Risk ===
* Conducting spectrum and wireless surveys
* Requiring Hardware Bills of Materials (HBOMs)
* Expanding supplier assurance programs
* Implementing independent product testing


---
Global supply chains remain vulnerable to geopolitical developments, manufacturing concentration, transportation constraints, and evolving trade regulations.


## Software Supply Chain Risks
Examples include:
 
Modern energy infrastructure increasingly relies on firmware, embedded software, cloud platforms, and third-party applications.
 
### Examples
 
* Compromised software updates
* Vulnerable open-source components
* Unauthorized firmware modifications
* Third-party remote support tools
* Software dependencies with limited visibility
 
### Why It Matters
 
A single software compromise can affect thousands of deployed systems simultaneously.
 
Utility operators are increasingly concerned with understanding the origin, development, maintenance, and security posture of software incorporated into operational technologies.
 
### Industry Response
 
* Software Bill of Materials (SBOM) requirements
* Secure software development reviews
* Vulnerability disclosure programs
* Vendor security assessments
* Software integrity validation
 
---
 
## Geopolitical & Supplier Dependency Risks
 
Global supply chains remain vulnerable to geopolitical events, trade restrictions, transportation disruptions, and regional conflicts.
 
### Examples


* Trade restrictions and tariffs
* Export controls
* Semiconductor shortages
* Semiconductor shortages
* Export controls
* Critical mineral dependencies
* Critical mineral availability
* Transportation disruptions
* Shipping route disruptions
* International trade restrictions
* Manufacturing concentration in specific regions


### Why It Matters
These events can affect equipment availability, increase lead times, and delay infrastructure investments across the utility sector.


Many utility technologies rely on components that have limited alternative suppliers or long replacement lead times.
{| class="wikitable"
|+ Common Supply Chain Risk Drivers
|-
! Risk Area
! Examples
|-
| Cybersecurity
| Third-party compromise, ransomware, software supply chain attacks
|-
| Technology
| Undocumented communications, firmware integrity concerns, unsupported products
|-
| Geopolitical
| Export controls, tariffs, regional instability
|-
| Logistics
| Shipping delays, port disruptions, inventory shortages
|}


Supply disruptions can delay:
----


* Grid modernization projects
== Supply Chain Cybersecurity ==
* Substation upgrades
* Renewable energy deployments
* Battery storage projects
* Critical maintenance initiatives


### Industry Response
As utilities continue their digital transformation efforts, cybersecurity considerations increasingly extend beyond organizational boundaries and into supplier ecosystems.


* Supplier diversification
Industry supply chain security programs focus on understanding software integrity, vendor access, communications pathways, and architectural risks before technologies are deployed.<ref>[https://msites.epri.com/spn/research/112046/security-design-architecture-review%3A-solar-inverters EPRI Security Design Architecture Review: Solar Inverters (3002029720)]</ref>
* Multi-sourcing strategies
* Nearshoring initiatives
* Strategic inventory reserves
* Regional manufacturing partnerships


---
EPRI's Defensible Network Architectures guidance provides criteria for securely deploying operational technologies and reducing exposure to unauthorized access pathways.<ref>[https://www.epri.com/research/products/000000003002027430 EPRI Defensible Network Architectures: Criteria for Secure OT Deployment in Power Systems (3002027430)]</ref>


# Supply Chain Cybersecurity
'''Leading Practices'''


Digital transformation has expanded the attack surface across modern supply chain ecosystems.
* Supplier cybersecurity assessments
 
* Software Bills of Materials (SBOMs)
Compromise of a supplier may have direct or indirect consequences for utility operations, information technology environments, and operational technology systems.
* Hardware Bills of Materials (HBOMs)
 
* Vendor access reviews
[[File:SupplyChainCyber.jpg|thumb|right|450px|Cybersecurity Within Connected Supply Networks]]
 
## Common Threat Areas
 
* Third-party compromise
* Ransomware
* Software supply chain attacks
* Vendor remote access misuse
* Connected IoT device vulnerabilities
* Operational Technology (OT) targeting
 
### Utility Sector Relevance
 
Successful attacks against suppliers or technology providers may affect:
 
* Grid operations
* Distributed energy resources
* Enterprise applications
* Customer systems
* Critical business functions
 
### Leading Practices
 
* Zero Trust Architecture
* Multi-Factor Authentication (MFA)
* Multi-Factor Authentication (MFA)
* Supplier Cyber Assessments
* Network segmentation
* Continuous Third-Party Monitoring
* Continuous supplier monitoring
* Network Segmentation
* Vendor Access Governance
* Incident Response Coordination


---
----


# Artificial Intelligence in Supply Chains
== Artificial Intelligence in Supply Chains ==


[[File:Audit AI Agent.jpg|thumb|right|450px|AI-Enabled Supply Chain Analytics]]
[[File:Audit AI Agent.jpg|thumb|right|450px|AI-Enabled Supply Chain Analytics]]


AI is rapidly transforming supply chain operations from reactive planning toward predictive and data-driven decision making.
Artificial Intelligence is helping organizations move beyond reactive supply chain management by improving forecasting, disruption analysis, inventory planning, and supplier-risk identification.


## Current Applications
Current applications include:


* Demand forecasting
* Demand forecasting
Line 202: Line 124:
* Transportation optimization
* Transportation optimization
* Procurement analytics
* Procurement analytics
* Supply disruption analysis
### Utility Sector Benefits


AI can help organizations:
As supply chains become increasingly complex, digital tools are being adopted to improve operational awareness and support planning activities across utility operations.<ref>[https://top.epri.com/research-area/inverter-based-resources-and-grid-interconnection EPRI Inverter-Based Resources and Grid Interconnection Research Area]</ref>


* Identify supplier risks earlier
=== Emerging Trend: Agentic AI ===
* Improve forecasting accuracy
* Prioritize operational disruptions
* Automate repetitive analysis activities
* Improve inventory planning for critical assets


### Emerging Trend: Agentic AI
Industry leaders are evaluating AI systems capable of performing approved actions on behalf of supply chain personnel. Potential applications include supplier evaluation, inventory balancing, logistics optimization, and disruption-response activities.


The next phase of supply chain technology is expected to include Agentic AI systems that can autonomously execute approved workflows while operating within established governance controls.
While still emerging, Agentic AI is expected to become a major area of investment over the next several years.


Potential applications include:
----


* Automated supplier identification
== Supply Chain Visibility & Control Towers ==
* Procurement recommendations
* Inventory rebalancing
* Logistics rerouting
* Risk-alert investigation


---
[[File:Supply Chain Control Tower.png|thumb|right|650px|Supply Chain Control Tower]]


# Supply Chain Visibility & Control Towers
A Supply Chain Control Tower provides a centralized view of suppliers, inventory, logistics networks, external risks, and operational dependencies.


[[File:Supply Chain Control Tower.png|thumb|right|800px|Supply Chain Control Tower]]
Rather than relying on disconnected data sources, organizations can monitor critical supply chain activities from a single operational picture and identify disruptions earlier.


Organizations increasingly seek centralized visibility across suppliers, inventory, transportation, manufacturing, and risk information.
The same industry drivers accelerating adoption of digital twins, advanced analytics, and operational visibility platforms are also increasing demand for comprehensive supplier awareness and dependency mapping.<ref>[https://www.epri.com/research/programs/112046/results/3002012753 EPRI Supply Chain Assessment Research Program]</ref>


A Supply Chain Control Tower provides a common operating picture that enables decision makers to monitor disruptions and take corrective action more quickly.
{| class="wikitable"
|-
! Capability
! Business Value
|-
| Real-Time Visibility
| Improves awareness of inventory, suppliers, shipments, and operational dependencies.
|-
| Risk Monitoring
| Identifies supply chain disruptions, supplier issues, and emerging risks earlier.
|-
| Decision Support
| Enables faster and more informed operational and procurement decisions.
|-
| Executive Reporting
| Provides leadership with a consolidated view of supply chain performance and risks.
|}


## Benefits


* Real-time situational awareness
----
* Supplier performance monitoring
* Shipment tracking
* Inventory visibility
* Risk event detection
* Executive reporting
* Faster decision making


### Questions Industry Leaders Should Ask
== Digital Twins & Scenario Planning ==


* Do we have visibility beyond Tier-1 suppliers?
* Can we identify supplier concentration risks?
* How quickly can disruptions be detected?
* Are critical dependencies documented?
* Can we rapidly assess the impact of supplier disruptions?


---
Digital Twins create virtual representations of suppliers, transportation networks, inventory, and operational dependencies.


# Digital Twins & Scenario Planning
These environments allow organizations to evaluate potential disruptions before they occur and better understand downstream operational impacts.


[[File:DigitalTwinSupplyChain.jpg|thumb|right|500px|Supply Chain Digital Twin Example]]
As utilities adapt to increasing levels of inverter-based resources, distributed energy resources, and interconnected technologies, advanced modeling and simulation capabilities are becoming essential tools for planning, resilience analysis, and operational decision-making.<ref>[https://top.epri.com/research-area/inverter-based-resources-and-grid-interconnection EPRI Inverter-Based Resources and Grid Interconnection Research Area]</ref>


Digital Twins create virtual representations of supply chain ecosystems, allowing organizations to evaluate the potential impact of disruptions before they occur.
Common scenarios include:


## Example Scenarios
* Supplier failures
 
* Transportation disruptions
* Supplier failure
* Transportation interruptions
* Port closures
* Severe weather events
* Severe weather events
* Material shortages
* Equipment shortages
* Regulatory changes
* Grid modernization delays


### Business Value
----


Digital Twin technologies can help organizations:
== Recommendations ==


* Evaluate operational impacts
{| class="wikitable"
* Analyze alternative sourcing strategies
|-
* Assess recovery timelines
! Area
* Support risk mitigation planning
! Recommended Actions
* Improve resilience decision making
|-
| Procurement
| Require SBOMs and HBOMs, assess supplier security practices, review remote-access capabilities, and validate vendor security programs.
|-
| Visibility
| Maintain supplier inventories, map critical dependencies, improve traceability, and understand technology communications pathways.
|-
| Monitoring
| Continuously assess supplier risks, geopolitical developments, software vulnerabilities, and emerging threats.
|-
| Security
| Eliminate default credentials, implement MFA, restrict remote access, validate firmware integrity, and segment networks.
|}


---
----


# Recommendations for Utilities & Critical Infrastructure Operators
== Emerging Trends ==


## Procurement
Utilities continue to monitor several technologies and practices that may significantly influence future supply chain operations, resilience, and risk management.
 
* Require Software Bills of Materials (SBOMs)
* Require Hardware Bills of Materials (HBOMs)
* Assess supplier cybersecurity maturity
* Validate secure development practices
* Review remote access capabilities
* Define contractual security requirements
 
## Visibility
 
* Maintain comprehensive asset inventories
* Map critical supplier dependencies
* Conduct wireless communications assessments
* Identify undocumented communications pathways
* Improve supplier transparency
 
## Monitoring
 
* Implement continuous supplier risk monitoring
* Track geopolitical developments
* Review supplier security advisories
* Monitor critical component dependencies
* Assess concentration risks
 
## Security
 
* Eliminate default credentials
* Restrict unnecessary remote access
* Implement MFA where practical
* Segment operational networks
* Validate firmware integrity
* Monitor vendor access activity
 
---
 
# Future Topics to Watch (2026-2027)
 
## High Priority


{| class="wikitable"
|+ Industry Watchlist
|-
! High Priority
! Emerging Areas
|-
|
* Agentic AI
* Agentic AI
* Supply Chain Control Towers
* Supply Chain Control Towers
* Digital Twins
* Digital Twins
* Third-Party Cyber Risk
* Software Supply Chain Security
* Software Supply Chain Security
* Supplier Resilience Programs
* Third-Party Risk Monitoring
 
|
## Emerging Technologies
 
* Autonomous Logistics
* Autonomous Logistics
* Robotics
* Robotics
* IoT-Based Asset Tracking
* IoT Asset Tracking
* Advanced Supplier Intelligence
* Digital Product Passports (DPPs)
* Digital Product Passports (DPP)
|}


---
'''Digital Product Passports (DPPs)'''


# Digital Product Passports (DPP)
Digital Product Passports are emerging as a mechanism for improving product traceability and lifecycle transparency. Driven largely by international regulatory initiatives, DPPs may influence future procurement, supplier reporting, asset lifecycle management, and supply chain visibility programs.


Digital Product Passports are emerging as a regulatory and traceability initiative, particularly within European markets.
----


A DPP creates a persistent digital record that travels with a product throughout its lifecycle.
== References ==


### Potential Benefits
<references />


* Product traceability
== EPRI Resources ==
* Component transparency
* Compliance reporting
* Supply chain visibility


### Industry Relevance
* [https://www.epri.com/research/programs/112046/results/3002012753 EPRI Supply Chain Assessment Research Program]
* [https://msites.epri.com/spn/research/112046/security-design-architecture-review%3A-solar-inverters EPRI Security Design Architecture Review: Solar Inverters (3002029720)]
* [https://www.epri.com/research/products/000000003002012752 EPRI Technical Assessment Methodology (3002012752)]
* [https://www.epri.com/research/products/000000003002027430 EPRI Defensible Network Architectures: Criteria for Secure OT Deployment in Power Systems (3002027430)]
* [https://top.epri.com/research-area/inverter-based-resources-and-grid-interconnection EPRI Inverter-Based Resources and Grid Interconnection Research Area]


While not currently a primary focus area for most utilities, Digital Product Passports may influence future supplier reporting, asset traceability, and procurement requirements.
== Related Topics ==


Organizations that manufacture, export, or procure globally sourced equipment should continue monitoring regulatory developments.
* Inverter-Based Resources (IBRs)
 
* Battery Energy Storage Systems (BESS)
---
* Supply Chain Cybersecurity
 
* Operational Technology (OT) Security
# Key Questions for Leadership
* Digital Twins
 
* Artificial Intelligence
* Do we understand dependencies beyond Tier-1 suppliers?
* Supplier Risk Management
* Can we detect supply chain disruptions before operational impact occurs?
* Grid Modernization
* How are supplier cybersecurity risks evaluated and monitored?
* Are software and hardware supply chain risks included in procurement decisions?
* Do we have visibility into communications capabilities across critical assets?
* Can we rapidly assess the operational impact of supplier disruptions?
* Are resilience investments aligned with the organization's highest-risk dependencies?
 
---
 
# Additional Resources
 
* EPRI Supply Chain Assessment Research
* DOE Cybersecurity and Supply Chain Guidance
* NERC Supply Chain Risk Management Resources
* CISA Supply Chain Risk Management Frameworks
* NIST Cybersecurity Supply Chain Risk Management Guidance

Latest revision as of 20:04, 5 November 2026

Supply Chain Security, Resilience & Industry Trends

EPRI Supply Chain Model[1]

Executive Summary

Supply chains have become a strategic focus area for utilities and critical infrastructure operators. Globally sourced hardware, software, and connected technologies introduce cybersecurity, operational, and geopolitical risks that can impact reliability, resilience, and business operations.

At the same time, utilities are investing in advanced visibility and decision-support capabilities including Artificial Intelligence (AI), Supply Chain Control Towers, Digital Twins, and supplier-risk monitoring. These capabilities help organizations improve situational awareness, identify disruptions earlier, and strengthen long-term resilience.

Area Potential Impact
Reliability Equipment shortages, supplier outages, and logistics disruptions can affect maintenance schedules, project timelines, and grid modernization efforts.
Cybersecurity Third-party technologies may introduce new attack surfaces, software vulnerabilities, and unauthorized access pathways.
Operations Limited visibility into suppliers and dependencies can delay the identification and resolution of operational disruptions.
Resilience Organizations require the ability to anticipate, withstand, and recover from changing operational, geopolitical, and market conditions.

Key Supply Chain Risks

Technology & Asset Assurance

Recent industry assessments have highlighted the importance of understanding communications protocols, data flows, vendor connectivity, and remote access capabilities associated with modern energy technologies.[2]

Examples include:

  • Cellular communications modules
  • Wi-Fi connectivity
  • Bluetooth interfaces
  • Vendor remote-access capabilities
  • Undocumented communications pathways

Why It Matters

For utilities, uncertainty surrounding deployed technologies can complicate asset management, cybersecurity monitoring, incident response, and overall operational awareness. The challenge is often less about a specific technology and more about understanding exactly what has been deployed and how it communicates.

Software Supply Chain Risk

Modern utility operations depend on software vendors, cloud providers, embedded firmware, open-source components, and third-party integrators.

A compromise of a trusted software supplier can potentially affect multiple organizations simultaneously. As software ecosystems grow increasingly complex, visibility into software dependencies becomes more important.

EPRI's Technical Assessment Methodology (TAM) emphasizes evaluating attack surfaces, identifying security gaps, and validating security controls throughout technology deployments. [3] [4]

Geopolitical & Supplier Risk

Global supply chains remain vulnerable to geopolitical developments, manufacturing concentration, transportation constraints, and evolving trade regulations.

Examples include:

  • Trade restrictions and tariffs
  • Export controls
  • Semiconductor shortages
  • Critical mineral dependencies
  • Transportation disruptions

These events can affect equipment availability, increase lead times, and delay infrastructure investments across the utility sector.

Common Supply Chain Risk Drivers
Risk Area Examples
Cybersecurity Third-party compromise, ransomware, software supply chain attacks
Technology Undocumented communications, firmware integrity concerns, unsupported products
Geopolitical Export controls, tariffs, regional instability
Logistics Shipping delays, port disruptions, inventory shortages

Supply Chain Cybersecurity

As utilities continue their digital transformation efforts, cybersecurity considerations increasingly extend beyond organizational boundaries and into supplier ecosystems.

Industry supply chain security programs focus on understanding software integrity, vendor access, communications pathways, and architectural risks before technologies are deployed.[5]

EPRI's Defensible Network Architectures guidance provides criteria for securely deploying operational technologies and reducing exposure to unauthorized access pathways.[6]

Leading Practices

  • Supplier cybersecurity assessments
  • Software Bills of Materials (SBOMs)
  • Hardware Bills of Materials (HBOMs)
  • Vendor access reviews
  • Multi-Factor Authentication (MFA)
  • Network segmentation
  • Continuous supplier monitoring

Artificial Intelligence in Supply Chains

AI-Enabled Supply Chain Analytics

Artificial Intelligence is helping organizations move beyond reactive supply chain management by improving forecasting, disruption analysis, inventory planning, and supplier-risk identification.

Current applications include:

  • Demand forecasting
  • Inventory optimization
  • Supplier risk monitoring
  • Predictive maintenance
  • Transportation optimization
  • Procurement analytics

As supply chains become increasingly complex, digital tools are being adopted to improve operational awareness and support planning activities across utility operations.[7]

Emerging Trend: Agentic AI

Industry leaders are evaluating AI systems capable of performing approved actions on behalf of supply chain personnel. Potential applications include supplier evaluation, inventory balancing, logistics optimization, and disruption-response activities.

While still emerging, Agentic AI is expected to become a major area of investment over the next several years.

Supply Chain Visibility & Control Towers

Supply Chain Control Tower

A Supply Chain Control Tower provides a centralized view of suppliers, inventory, logistics networks, external risks, and operational dependencies.

Rather than relying on disconnected data sources, organizations can monitor critical supply chain activities from a single operational picture and identify disruptions earlier.

The same industry drivers accelerating adoption of digital twins, advanced analytics, and operational visibility platforms are also increasing demand for comprehensive supplier awareness and dependency mapping.[8]

Capability Business Value
Real-Time Visibility Improves awareness of inventory, suppliers, shipments, and operational dependencies.
Risk Monitoring Identifies supply chain disruptions, supplier issues, and emerging risks earlier.
Decision Support Enables faster and more informed operational and procurement decisions.
Executive Reporting Provides leadership with a consolidated view of supply chain performance and risks.


Digital Twins & Scenario Planning

Digital Twins create virtual representations of suppliers, transportation networks, inventory, and operational dependencies.

These environments allow organizations to evaluate potential disruptions before they occur and better understand downstream operational impacts.

As utilities adapt to increasing levels of inverter-based resources, distributed energy resources, and interconnected technologies, advanced modeling and simulation capabilities are becoming essential tools for planning, resilience analysis, and operational decision-making.[9]

Common scenarios include:

  • Supplier failures
  • Transportation disruptions
  • Severe weather events
  • Equipment shortages
  • Grid modernization delays

Recommendations

Area Recommended Actions
Procurement Require SBOMs and HBOMs, assess supplier security practices, review remote-access capabilities, and validate vendor security programs.
Visibility Maintain supplier inventories, map critical dependencies, improve traceability, and understand technology communications pathways.
Monitoring Continuously assess supplier risks, geopolitical developments, software vulnerabilities, and emerging threats.
Security Eliminate default credentials, implement MFA, restrict remote access, validate firmware integrity, and segment networks.

Emerging Trends

Utilities continue to monitor several technologies and practices that may significantly influence future supply chain operations, resilience, and risk management.

Industry Watchlist
High Priority Emerging Areas
  • Agentic AI
  • Supply Chain Control Towers
  • Digital Twins
  • Software Supply Chain Security
  • Third-Party Risk Monitoring
  • Autonomous Logistics
  • Robotics
  • IoT Asset Tracking
  • Digital Product Passports (DPPs)

Digital Product Passports (DPPs)

Digital Product Passports are emerging as a mechanism for improving product traceability and lifecycle transparency. Driven largely by international regulatory initiatives, DPPs may influence future procurement, supplier reporting, asset lifecycle management, and supply chain visibility programs.

References

  1. ↑ EPRI Supply Chain Assessment Research Program
  2. ↑ EPRI Security Design Architecture Review: Solar Inverters (3002029720)
  3. ↑ EPRI Technical Assessment Methodology (3002021184)
  4. ↑ EPRI Technical Assessment Methodology (3002017149)
  5. ↑ EPRI Security Design Architecture Review: Solar Inverters (3002029720)
  6. ↑ EPRI Defensible Network Architectures: Criteria for Secure OT Deployment in Power Systems (3002027430)
  7. ↑ EPRI Inverter-Based Resources and Grid Interconnection Research Area
  8. ↑ EPRI Supply Chain Assessment Research Program
  9. ↑ EPRI Inverter-Based Resources and Grid Interconnection Research Area

EPRI Resources

Related Topics

  • Inverter-Based Resources (IBRs)
  • Battery Energy Storage Systems (BESS)
  • Supply Chain Cybersecurity
  • Operational Technology (OT) Security
  • Digital Twins
  • Artificial Intelligence
  • Supplier Risk Management
  • Grid Modernization
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