E.ON Case Study: Supply Chain Logistics and Sustainability Analysis

This report provides an overview of E.ON's supply chain management practices, focusing on logistics and sustainability. It highlights E.ON's strategies for managing its supply chain, including supplier relationship management and the implementation of energy-efficient tools. The report discusses the company's commitment to sustainability, including its goals to become carbon neutral and promote equality throughout its value chain. E.ON's approach to supplier development and performance measurement is also examined, emphasizing the importance of quality, on-time delivery, sustainability, cost, and innovation. The report concludes that E.ON demonstrates a strong dedication to strengthening its supply chain and minimizing its environmental impact.

Running head: OPERATIONS MANAGEMENT
Operations Management
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Table of Contents
Introduction:...............................................................................................................................3
Organizational profile of E.ON:.................................................................................................3
Logistics management from the source to the customer:...........................................................4
Linkage between the company activities and LB5230 theories:................................................5
Sustainability throughout the value chain:.................................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

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Introduction:
Supply chain management is defined as the process of managing the flow of products
and services. In addition, appropriate supply chain management also comprises of all the
processes that are required in order to transform the raw materials into final products that can
meet the expectation of the customer. It comprises of streamlining all the major supply side
activities of a business in order to strengthen value among customers and thereby pave the
way for the firm to attain competitive advantage (Copacino, 2019). Appropriate supply chain
management comprises of all the activities that are required in order to produce high quality
of products. Farming, refining, design, manufacturing, packaging, and transportation are
some of the major activities of effective supply chain management. This paper will put forth
the discussion of supply chain management in the context of E.ON, one of the famous
Germany based energy companies. Logistic management of the company will be discussed in
the paper. In addition, the degree of sustainability of the value chain of the company will also
be discussed in the paper.
Organizational profile of E.ON:
E.ON is one of the famous electronic utility companies based in Germany. The
company operates the largest investor-owned electric utility service providers and is
successfully running their business throughout the globe. The company offer effective
solution for the new globe of energy and ensure the fact that everyone in their organisation
has the same focus. The customers are their main focal point and they are putting their best
effort in order to keep the customers happy and satisfied (Eon.com. 2020). This is the
international organisation with more than 70,000 employees, who arw extremely skilled and
competent in order to keep the clients happy and satisfied. Recently, the company is aiming

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to become the partner of choice in order to strengthen their energy choices and thus offer the
customers with effective solution.
A rapid change of climate is one of the main focal point of the company. This is the
reason, for which they are offering their customers with highly efficient electricity with the
backup of 100% renewable energy. The company has made agreement with independent UK
wind generators and purchase the certificate of 100% in order to source their electricity from
renewable generation assets of E.ON (Eonenergy.com. 2020). Sustainability and smart living
are two of the major aspects of internal functionality of E.ON and for which they have
developed strong energy network (Eon.com. 2020). During 2018, the net revenue of E.ON
was 3 crore EUR.
Logistics management from the source to the customer:
Being one of the largest energy organisations across the globe, E.ON puts utmost
stress on managing their logistics with utmost efficiency. The company has implemented
energy efficient tools for the sake of managing their logistics properly. The logistics customer
of E.ON is the leader in world in the sector of real estate for production and distribution
companies. Currently, the company is operating more than 400 state-of-the-art distribution
centers and warehouses throughout Europe. It is true that lightening is one of the major
factors, driving cost in most of their buildings. However, the company is not putting pressure
on its customers to deal with complex capital-intensive projects for the modernised lighting
system (Eon.com. 2020). The company is constantly encouraging the customers to
collaborate with their experts for the sake of exploring the best solution from both the third
party vendor and technology. In addition, the company always encourages its customers to
mitigate the challenges of urbanisation, through the cost saving method with the assistance of
their wide monitoring system. Extra ordinary thinking is the main focal point of E.ON.

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Effective collaboration is serving the company with the ability to develop and implement
extremely efficient LED lighting solutions, which are of high quality, high reliability and
better sustainability (Meredith & Shafer, 2019). It is to be noted here that, the customers have
to pay an additional fee for the sake of covering the entire cost.
At the same time, the company puts utmost stress on building good relationship with
the suppliers as they are the key factor of strengthening the value of business. Therefore, the
company has implemented Supplier Relationship Management (SRM) approach and work
closely with the suppliers to ensure that all the required standards are being followed to meet
the requirement of customers. The approach of E.ON is divided into different aspects like
Supplier On boarding, Supplier Performance, Supplier Risk Management and Supplier
Development, which are making it easy for the company to maintain right relationship with
suppliers (Eon.com. 2020). Moreover, the company also uses specific electronic tools in
order to manage their tender properly.
Linkage between the company activities and LB5230 theories:
As one of the largest energy company around the globe, E.ON puts extreme stress on
managing the supply chain properly. In order to develop the efficiency of supply chain, the
company consistently search and engage their suppliers in the development activities. This is
the way, through which the company is becoming able to set a performance dimension for
them to perform accordingly to fulfill the business need. Long term gaol of E.ON behind
arranging the supplier development program is to make a sustainable and growing business
relationship (Eon.com. 2020).
Recently, the company is also focusing on improving the performance of supplier,
which is the key of improving the quality of products. The company work closely with their
supplier in order to measure different product related factors such as dimensions quality, on-

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time delivery, sustainability, cost and innovation, which are the key of offering the customers
with high quality of products and thereby keeping the customers happy and satisfied (Pettit,
Croxton & Fiksel, 2019).
Sustainability throughout the value chain:
Value chain sustainability is one of the major ways, through which the companies can
stay competitive by reducing negative impact of their business from the environment.
Sustainability is the main focal point of E.ON. The company strive to be successful in
managing harmony with the natural resources. As the energy world is becoming highly
distributed, digital, and decarbonised, the company is working hard in order to make their
grid smarter, which is making it easy for them to integrate more renewable energy. The
company is offering the customer with innovative solution in order to use energy more
efficiently and thereby reduce the degree of carbon footprint (Eon.com. 2020). The company
is highly committed towards protecting the health and safety of their customers. The strategy
of mission 2020 has been implemented by the organisation in order to avoid any cost of
fatality.
The company is aiming to become carbon neutral by 2050 by developing the building
as carbon neutral by 2030 and electrifying the fleet by 2030. In addition, the company also
aims to reduce the rate of carbon footprint by 50%. In order to promote equality and
sustainability, the company ensures the fact that their human rights are being followed in
every aspect of their business including value chain. A strong network namely econsense- the
forum for sustainable development has been executed by the company. This is the strong
network, through which the company is showing their dedication to promote sustainability in
their value chain (Li, Holsapple & Goldsby, 2019).

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Conclusion:
To conclude, it can be said that, E.ON is showing utmost dedication in the way of
strengthening their supply chain and thereby ensure smooth flow of products. In addition, the
company is also putting stress on improving the functionality of suppliers in order to have
high quality of products. Sustainability is the core aspect of their business and currently E.ON
is working consistently to protect the environment from the negative impact of their business.

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References:
Copacino, W. C. (2019). Supply chain management: The basics and beyond. Routledge.
Eon.com. (2020). About us - Step into the future of new energy - E.ON. [online] Available at:
https://www.eon.com/en/about-us.html [Accessed 28 Jan. 2020].
Eon.com. (2020). Supplier management - E.ON Procurement. [online] Available at:
https://www.eon.com/en/about-us/e-on-procurement/supplier-management.html
[Accessed 28 Jan. 2020].
Eon.com. (2020). Supplier management - E.ON Procurement. [online] Available at:
https://www.eon.com/en/about-us/e-on-procurement/supplier-management.html
[Accessed 28 Jan. 2020].
Eon.com. (2020). Sustainability Strategy & Roadmap - E.ON SE. [online] Available at:
https://www.eon.com/en/about-us/sustainability/strategy.html [Accessed 28 Jan. 2020].
Eon.com. (2020). Sustainability to shape a new energy world - E.ON. [online] Available at:
https://www.eon.com/en/about-us/sustainability.html [Accessed 28 Jan. 2020].
Eon.com.(2020). Logistics. [online] Available at:
https://www.eon.com/de/geschaeftskunden/erfolgsstorys/logistik.html [Accessed 28 Jan.
2020].
Eonenergy.com. (2020). Gas and electricity supplier | Renewable energy | E.ON. [online]
Available at: https://www.eonenergy.com/ [Accessed 28 Jan. 2020].
Li, X., Holsapple, C. W., & Goldsby, T. J. (2019). The structural impact of supply chain
management teams: Supply chain agility development in multidivisional
firms. Management Research Review, 42(2), 290-310.

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Meredith, J.R. & Shafer, S.M., (2019). Operations and supply chain management for MBAs.
Wiley.
Pettit, T.J., Croxton, K.L. & Fiksel, J., (2019). The evolution of resilience in supply chain
management: a retrospective on ensuring supply chain resilience. Journal of Business
Logistics, 40(1), pp.56-65.

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