July 9, 2024

Employee Spotlight: Supply Chain Services Helps Tri-State, Members Provide Reliability, Affordability

All of us at one time or another have experienced the inability to find an item we needed to purchase, or have had to settle for a different or novel solution to our requirements. That has been the ongoing nature of the post-pandemic, worldwide supply chain crisis. Now imagine how these continuing difficulties might affect a purchasing and supply operation for a multi-state generation and transmission cooperative, and you will see the defining challenge facing Tri-State’s Supply Chain Services team. 

“Our mission is to make sure that we provide the highest quality services and support system to all of our members, so that they in turn can provide reliable, affordable, and responsible services to their distribution members. That has been more challenging since the pandemic,” said Ashley Perkins, Vice President for Supply Chain Services. “Our ability to help members in emergency situations, such as weather events or other equipment issues when they are facing long supply chain lead times, is a tremendous benefit of membership in Tri-State and it is a great example of the cooperative spirit at work.” 

Perkins said that securing the best materials at competitive prices for all areas of Tri-State’s business is a constant and ongoing effort. For example, a recent article last month in POWER Magazine noted that for several years, the power sector has frantically raised the alarm about an impending transformer supply chain crisis, seeking to reinforce the availability of the component that many consider the backbone of the electric industry. 

“Securing transformers keeps me awake at night,” Perkins said. “Since the pandemic, large transformer lead times have increased by as much as four years, and in some cases, prices have increased by as much as 60% and have not significantly come down. It is a major challenge to find the equipment, which best meets our needs, from the best vendors at the best price. Often times, we must manage these purchases in line with the construction schedules of transmission and generation operations.” 

At Tri-State, Supply Chain Services encompasses six departments and approximately 45 employees, including Accounts Payable, Contracts, Fuel Supply, Inventory, Supplier and Travel Management, and Purchasing.  

“Skilled supply chain employees are in very high demand throughout our industry,” Perkins said. “Fortunately, at Tri-State, we have many long-tenured, dedicated, and knowledgeable employees who enjoy working with our members, and other internal and external customers. We have exceptionally low turnover, but keeping up with the demand for talent is another challenge in our industry.”   

Recently, one example of Supply Chain Services in action occurred Thursday afternoon, June 20 near Scottsbluff, Neb., where tornadic winds damaged 44 structures on four miles of the Emigrant-Wildcat 115-kilovolt line transmission line, which serves Tri-State’s public power district members. Power was rerouted to restore services and work to restore the line was initiated. 

Tri-State worked closely with the Roosevelt Public Power District, which had a power line in the same area as Tri-State’s transmission line, on coordinating repairs to all the structures. Supply Chain Services provided support to Tri-State’s transmission line civil engineering services to re-design the line, and had poles enroute to the damage area by Saturday morning, June 22, from Montrose, Colo., Rio Rancho, N.M., and Sidney, Neb. The line was fully restored to service by Wednesday, June 26. 

“We maintain significant inventory and built-in storm stock material to address different weather situations, and we have the ability to work with other generation and transmission cooperatives nationwide through an online inventory database (RAPID, for Readily Accessible Parts Inventory Database) to acquire other equipment we might need,” said Mark Dreyer, inventory manager for Tri-State’s Inventory and Asset Recovery department.  

Dreyer noted that spring and summer severe weather events affecting transmission systems are not unusual. In 2023, Tri-State made repairs or assisted members or utility industry partners with half a dozen storm related incidents. In many cases, Tri-State was able to reduce the lead time for these members or other utilities, some of which would not have seen their orders fulfilled for a year or more, because of inventory Tri-State had in stock or because of its strong connections within the industry. 

“The supply chain team at Tri-State appreciates the opportunity to be of service to our members. When a member requests assistance, we do our best to help, if possible,” Perkins added. “Supply Chain Services has the ability to leverage our purchasing power and keep critical inventory on hand, while maintaining strong relationships with other utilities – all of which helps our members and Tri-State provide reliable services in very challenging times for our industry.”