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Cteep Case: Logistics Centralization and Inventory Governance

How data quality in Purchasing and Planning ensured cost reduction, compliance, and inventory optimization.

CTEEP (Companhia de Transmissão de Energia Elétrica Paulista), an ISA group company and one of the largest private concessionaires in the sector in Brazil, has been operating in electricity transmission for over 15 years, operating in 16 states and accounting for approximately 25% of the country's total energy production. In a strategic move to reduce costs and optimize services, the company has structured a robust project to centralize its 13 warehouses into a single logistics operation.

Challenge: Centralize and Standardize to Optimize

The project began in 2009 with the creation of a Distribution Center in Bauru and the organization of 12 regional warehouses in Assis, Itapetininga, Jupiá, Presidente Prudente, Votuporanga, Cabreúva, Santa Bárbara d'Oeste, Mococa, Taubaté, Santo Ângelo, Cubatão and São Paulo (capital).

Initial actions included:

  • Structuring the CD in Bauru;

  • Transfer of excess stock;

  • Transformation of level 2 warehouses into “Ready Stocks”;

  • Centralized replacement from Bauru.

To achieve this unification, it was essential to standardize material descriptions, ensuring correct identification of items in each unit. To achieve this, CTEEP hired CH Master Data | Astrein, a company specializing in centralized registration and data standardization solutions.

The partnership made it possible to create a unified registry that adheres to the Electrical Sector Asset Control Manual (MCPSE), promoting compliance with ANEEL requirements and optimizing purchasing and inventory management operations.

Phases of Centralization

  • 2010 – Second phase: Reduction to four warehouses: Jupiá, Cabreúva, Taubaté, and São Paulo. Regional stocks began to operate as “standby.”

  • 2011 – Third phase: Consolidation of the structure with just two points: the Distribution Center in Bauru and the warehouse in São Paulo/Capital.

Results and Strategic Vision

According to Enzo Brigante , Supply Manager and responsible for the project:

"Among the objectives of centralizing warehouses, we considered the importance of having a balanced inventory, ensuring there was no shortage of material, no overcommitted capital, and no duplicate or obsolete materials. A lack of material availability can quickly add 10% to 25% to additional labor costs. Conversely, overcommitted capital and duplicate and obsolete materials can account for 20% to 30% of annual MRO expenditure. Thus, we seek to reduce inventory costs, complying with Aneel (National Institute of Standards and Standards) regulations, increasing Engineering's visibility to utilize in-stock items, and simultaneously reducing the volume of new parts purchases."

Multidepartmental Governance Project

With the progress achieved, CTEEP initiated a strategic inventory governance project, involving several areas and with the following objectives:

  • Accurate identification of materials throughout the supply chain;

  • Reduction of operational errors, non-conformities and returns;

  • Aggregated purchases by regions, reducing contracted values;

  • Reduction in the acquisition of commercial materials as specific items;

  • Improved item search, comparison and request;

  • Standardization of specifications and material traceability;

  • Creation of a price database and increased accuracy of information.

Main Benefits Achieved

  • R$ 16.7 million in reduction of the total value of inventories;

  • Greater synergy between areas and awareness of the use of existing stock;

  • Projects began to consider materials already available in stock;

  • Improvement in categorization and management of materials;

  • Compliance with MCPSE/ANEEL in descriptions and coding;

  • Increased accuracy in accounting inventory.

Sector Initiative: Synergy between Companies in the Electricity Sector

Enzo Brigante, also coordinator of the FUNCOGE supply committee, highlights:

"The electricity sector offers significant opportunities for profit through inventory management. One of the FUNCOGE committee's initiatives was the creation of the Equipment and Materials Exchange (BEM) to allow companies to make their excess assets available for acquisition or exchange between companies. This synergy could significantly contribute to reducing inventory and purchasing costs. The next step is to seek a common language among companies through item standardization, facilitating data correlation and improving materials management across the sector."

Do you want to optimize your inventory and ensure more efficient purchasing like CTEEP?

📧 Talk to our experts: contato@chmasterdata.com 📞 WhatsApp: (11) 2824-5148

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