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== Executive Summary ==
= Supply Chain Security, Resilience & Industry Trends =


Supply chain assessments identified significant risks associated with globally sourced inverter-based resources (IBRs) and battery energy storage systems (BESS). Limited visibility into hardware, firmware, and communications capabilities creates opportunities for malicious modification, hidden functionality, and unauthorized remote access.
[[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>]]


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


== Key Findings ==
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.


=== Undocumented Hardware and Communications ===
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.


* Hidden cellular, Wi‑Fi, and Bluetooth capabilities were discovered during field assessments.
{| 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.
|}


* Undocumented communications undermine assumptions regarding trusted deployments.
----


* Hardware configurations did not always align with manufacturer documentation.
== Key Supply Chain Risks ==


=== Supply Chain Visibility Gaps ===
=== Technology & Asset Assurance ===


* Utilities have limited visibility into sourcing, manufacturing, firmware provenance, and component supply chains.
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>


* Counterfeit or modified equipment remains difficult to identify and validate.
Examples include:


=== Security Control Weaknesses ===
* Cellular communications modules
* Wi-Fi connectivity
* Bluetooth interfaces
* Vendor remote-access capabilities
* Undocumented communications pathways


* Default credentials remain common across deployed systems.
'''Why It Matters'''


* Many systems lack lockout, throttling, and credential-guessing protections.
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.


* Security approaches frequently rely on trusted environments instead of technical controls.
=== Software Supply Chain Risk ===


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


=== Operational Risks ===
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.


* Coordinated manipulation of IBRs and BESS could contribute to grid instability.
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>


* Unauthorized remote access may enable coordinated shutdowns and operational disruption.
=== Geopolitical & Supplier Risk ===


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


* Wireless communications extend the attack surface beyond facility boundaries.
Examples include:


* Cellular connectivity removes geographic constraints for attackers.
* Trade restrictions and tariffs
* Export controls
* Semiconductor shortages
* Critical mineral dependencies
* Transportation disruptions


* Supply-chain tampering may remain undetected throughout the asset lifecycle.
These events can affect equipment availability, increase lead times, and delay infrastructure investments across the utility sector.


== Recommendations ==
{| 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
|}


=== Procurement Controls ===
----


* Require Software Bills of Materials (SBOMs).
== Supply Chain Cybersecurity ==


* Require Hardware Bills of Materials (HBOMs).
As utilities continue their digital transformation efforts, cybersecurity considerations increasingly extend beyond organizational boundaries and into supplier ecosystems.


* Validate vendor secure-development practices.
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>


* Require vulnerability disclosure programs.
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>


=== Detection and Monitoring ===
'''Leading Practices'''


* Perform wireless spectrum assessments.
* 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


* Continuously inventory assets and communications pathways.
----
 
* Establish supply-chain forensic and investigative capabilities.
 
=== Mitigation ===
 
* Disable unnecessary remote-access capabilities.
 
* Eliminate default credentials.
 
* Implement network segmentation.
 
* Deploy multifactor authentication where practical.
 
= Supply Chain Industry Trends & Emerging Topics =
 
Supply chains are undergoing one of the largest transformations in modern business history. Organizations are shifting from traditional cost-focused models toward resilient, intelligent, and transparent supply chain ecosystems capable of adapting to geopolitical disruptions, climate events, cybersecurity threats, and changing regulatory requirements.
 
[[File:Supply Chain Control Tower.png|thumb|right|800px|Supply Chain Control Tower]]
 
== Executive Summary ==
 
Key priorities for supply chain leaders include:
 
* Artificial Intelligence (AI) and autonomous decision support
 
* End-to-end supply chain visibility
 
* Cybersecurity and third-party risk management


* Nearshoring and supplier diversification
== Artificial Intelligence in Supply Chains ==


* Sustainability and regulatory compliance
[[File:Audit AI Agent.jpg|thumb|right|450px|AI-Enabled Supply Chain Analytics]]


* Digital Product Passports (DPP)
Artificial Intelligence is helping organizations move beyond reactive supply chain management by improving forecasting, disruption analysis, inventory planning, and supplier-risk identification.


* Real-time disruption monitoring
Current applications include:
 
* Supply chain digital twins
 
Industry leaders increasingly view supply chains as strategic assets that directly impact business resilience, customer trust, and competitive advantage.
 
= Artificial Intelligence in Supply Chains =
 
[[File:Audit AI Agent.jpg|thumb|right|450px|Audrie the Audit AI Agent]]
 
AI is rapidly transforming supply chain operations from reactive planning toward predictive and autonomous decision-making.
 
== Current AI Applications ==


* Demand forecasting
* Demand forecasting
* Inventory optimization
* Inventory optimization
* Supplier risk monitoring
* Supplier risk monitoring
* Transportation route optimization
* Procurement automation
* Predictive maintenance
* Predictive maintenance
* Transportation optimization
* Procurement analytics


* Supply disruption modeling
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>
 
* Warehouse automation
 
Organizations are increasingly deploying AI-enabled scenario planning tools to evaluate disruptions before they occur, allowing planners to simulate tariff changes, supplier failures, weather events, and logistics constraints before making decisions.


=== Emerging Trend: Agentic AI ===
=== Emerging Trend: Agentic AI ===


The next phase of supply chain technology is expected to include "Agentic AI," where AI systems not only recommend actions but autonomously execute selected workflows based on predefined business rules.
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.


Examples include:
While still emerging, Agentic AI is expected to become a major area of investment over the next several years.
 
* Automated supplier sourcing
 
* Dynamic inventory balancing
 
* Automated logistics rerouting
 
* Procurement recommendation engines
 
== Questions Supply Chain Leaders Should Ask ==
 
* Do we have visibility beyond Tier-1 suppliers?
 
* Can disruptions be detected before they impact operations?
 
* Is planning data centralized?
 
* Are manual decisions creating bottlenecks?


----
----


= Supply Chain Risk & Geopolitics =
== Supply Chain Visibility & Control Towers ==


[[File:GlobalSupplyChainMap.jpg|thumb|right|500px|Global Supply Chain Dependencies]]
[[File:Supply Chain Control Tower.png|thumb|right|650px|Supply Chain Control Tower]]


Geopolitical uncertainty remains one of the largest risk factors affecting global supply chains.
A Supply Chain Control Tower provides a centralized view of suppliers, inventory, logistics networks, external risks, and operational dependencies.


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


* Trade restrictions and tariffs
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>


* Export controls
{| 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.
|}


* Semiconductor dependencies
* Critical mineral sourcing
* Regional conflicts
* Transportation chokepoints
* Customs and trade regulation changes
According to industry risk assessments, geopolitical fragmentation continues to drive companies toward sourcing diversification and regional manufacturing investments.
=== Resilience Strategies ===
* Nearshoring
* Friend-shoring
* Multi-sourcing
* Strategic inventory reserves
* Regional manufacturing hubs
* Supplier diversification


----
----


= Supply Chain Cybersecurity =
== Digital Twins & Scenario Planning ==


[[File:SupplyChainCyber.jpg|thumb|right|450px|Cybersecurity Within Connected Supply Networks]]


Digital transformation has expanded the attack surface across modern supply chains.
Digital Twins create virtual representations of suppliers, transportation networks, inventory, and operational dependencies.


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


* Third-party vendor compromise
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>


* Ransomware attacks
Common scenarios include:


* Software supply chain attacks
* Supplier failures
 
* Transportation disruptions
* Connected IoT device compromise
* Severe weather events
 
* Equipment shortages
* Operational Technology (OT) attacks
* Grid modernization delays
 
* Logistics platform breaches
 
== Best Practices ==
 
* Supplier cyber assessments
 
* Multi-factor authentication (MFA)
 
* Continuous third-party monitoring
 
* Software Bill of Materials (SBOM)
 
* Zero Trust Architecture
 
* Risk-based supplier onboarding
 
=== Notable Industry Incidents ===
 
* SolarWinds supply chain compromise
 
* MOVEit third-party data breach
 
* Software package repository compromises
 
* Manufacturing ransomware campaigns
 
Organizations increasingly evaluate cybersecurity posture as part of procurement and supplier approval processes.


----
----


= Digital Twins & Supply Chain Visibility =
== Recommendations ==
 
[[File:DigitalTwinSupplyChain.jpg|thumb|right|500px|Supply Chain Digital Twin Example]]


Supply chain visibility platforms create digital representations of supplier, transportation, inventory, and manufacturing networks.
{| class="wikitable"
 
|-
== Benefits ==
! Area
 
! Recommended Actions
* Real-time inventory visibility
|-
 
| Procurement
* Shipment monitoring
| Require SBOMs and HBOMs, assess supplier security practices, review remote-access capabilities, and validate vendor security programs.
 
|-
* Supply disruption analysis
| Visibility
 
| Maintain supplier inventories, map critical dependencies, improve traceability, and understand technology communications pathways.
* Bottleneck identification
|-
 
| Monitoring
* Forecast simulation
| Continuously assess supplier risks, geopolitical developments, software vulnerabilities, and emerging threats.
 
|-
* Risk scenario planning
| Security
 
| Eliminate default credentials, implement MFA, restrict remote access, validate firmware integrity, and segment networks.
=== Example Simulations ===
|}
 
* Port closures
 
* Supplier outages
 
* Hurricane impacts
 
* Transportation delays
 
* Trade restrictions
 
Digital Twins help organizations understand the downstream impact of disruptions before they occur.
 
----
 
= Sustainability & ESG Requirements =
 
[[File:SustainableSupplyChain.jpg|thumb|right|450px|Sustainable Supply Chain Management]]
 
Environmental sustainability is becoming a business requirement rather than a competitive differentiator.
 
== Areas of Focus ==
 
* Scope 1, 2, and 3 emissions
 
* Sustainable sourcing
 
* Carbon reporting
 
* Circular economy initiatives
 
* Supplier sustainability assessments
 
* Product traceability
 
Organizations increasingly require supply chain transparency to support ESG reporting obligations and customer expectations.
 
----
 
= Emerging Topic: Digital Product Passports (DPP) =
 
[[File:DigitalProductPassport.jpg|thumb|right|500px|Digital Product Passport Concept]]
 
One of the most significant upcoming developments in global supply chains is the deployment of Digital Product Passports (DPPs).
 
== What is a Digital Product Passport? ==
 
A Digital Product Passport is a digital record that follows a product throughout its lifecycle and contains information related to:
 
* Product origin
 
* Materials used
 
* Sustainability information
 
* Manufacturing history
 
* Recycling information
 
* Regulatory compliance
 
* Repairability
 
The <ExternalLink href="https://single-market-economy.ec.europa.eu/single-market/digital-product-passport_en">European Commission</ExternalLink> is implementing DPP requirements across various industries beginning with selected product categories and expanding over the coming years.
 
== Why It Matters ==
 
DPPs will improve:
 
* End-to-end traceability
 
* Product transparency
 
* Sustainability reporting
 
* Regulatory compliance
 
* Consumer trust
 
Organizations exporting products into European markets should begin evaluating DPP readiness programs now.


----
----


= Future Technologies to Watch =
== Emerging Trends ==


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


* Warehouse robotics
{| class="wikitable"
|+ 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)
|}


* Autonomous forklifts
'''Digital Product Passports (DPPs)'''


* Drone inventory inspections
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.
 
* Automated fulfillment centers
 
== Internet of Things (IoT) ==
 
* Environmental monitoring
 
* Asset tracking
 
* Predictive maintenance
 
* Cold chain monitoring
 
== Blockchain & Distributed Ledger Technologies ==
 
Emerging use cases include:
 
* Provenance tracking
 
* Anti-counterfeiting
 
* Trade documentation
 
* Supplier verification


----
----


= Supply Chain Watchlist (2026-2027) =
== References ==
 
This section should be reviewed monthly.
 
=== Areas to Monitor ===
 
'''Regulatory'''
 
* EU Digital Product Passport expansion
 
* Carbon Border Adjustment Mechanism (CBAM)
 
* Global sustainability reporting regulations
 
'''Technology'''
 
* Agentic AI adoption
 
* Autonomous logistics
 
* Supply chain digital twins
 
* Robotics integration
 
'''Cybersecurity'''
 
* Third-party compromise incidents
 
* Critical infrastructure threats
 
* Manufacturing sector ransomware
 
'''Geopolitical'''
 
* Trade negotiations
 
* Export controls
 
* Semiconductor regulations
 
* Critical mineral access
 
'''Climate Risks'''
 
* Panama Canal water constraints


* Red Sea shipping impacts
<references />


* Extreme weather disruptions
== EPRI Resources ==


* Port infrastructure challenges
* [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]


== Related Topics ==


== Resources ==
* 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

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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