Field service teams are the lifeblood of a resilient energy network, but what happens when logistics can’t keep up?
In the race to modernise Australia’s energy infrastructure, much of the attention has focused on big-ticket items such as grid upgrades, renewable integration and the sector’s digital transformation.
But there’s a quieter, less assuming challenge threatening to hold the industry back, and it’s hiding in warehouses and depots around the country – literally.
Inventory visibility is proving to be one of the most pervasive issues facing the sector. Indeed, a 2024 survey from Droppoint found that 46 per cent of respondents in the utility sector experience challenges related to limited real-time visibility into current inventory levels.
Utility respondents specified inventory visibility as a top challenge for them, more so than other industries, with almost half regularly losing time collecting parts of waiting at home for deliveries.
At first glance, this may seem like a small operational detail. But the inability to accurately track and manage critical parts and materials is causing avoidable delays, increasing costs and undermining service reliability as the industry is ramping up the energy transition.
Droppoint CEO, Jason Flanagan, said a lack of adequate operational visibility presents significant business risks and inefficiencies.
“Without clear insight into inventory status and movement, organisations are prone to challenges such as redundant stock holdings, unnecessary procurement, stagnant inventory, poor stock rotation and lost productivity due to time spent searching for items.”
With decarbonisation targets looming large and a growing pipeline of transmission infrastructure to be delivered, the stakes are higher than ever. Inventory gaps are no longer just an inconvenience – they’re an obstacle the sector can’t afford to ignore.
The rising cost of poor visibility
Managing spare parts has been critical to energy operations for as long as they have existed, but it’s the scale and complexity of today’s energy network that’s changed.
With the renewable rollout now in full force, businesses are working across vast geographies with a growing diversity of assets.
Field service crews are responding to more sites more often, and in more dynamic conditions. Whether it’s planned maintenance, emergency repairs or rapid upgrades, they need the right parts, and they need them fast.
Without clear visibility, however, the entire operation slows. Missing or misplaced parts trigger a domino effect of rescheduling, increased overtime, additional freight costs and blown out project timelines. And that’s just the most obvious impact.
In response to uncertainty, some businesses overstock “just in case”, tying up capital in inventory that might never be used. Others rely on emergency deliveries, or have workers travel long distances to retrieve missing parts, wasting time, budget and energy.
Then there are the less tangible impacts: extended outages, missed service level agreement metrics, delayed deadlines, frustrated customers, and potentially even reputation damage.
In a sector tasked with powering the nation, even the smallest inventory management issues can have major consequences.
Poor inventory visibility also adds a constant layer of friction for field technicians, who work hard behind‑the-scenes to keep the industry running smoothly.
Instead of focusing on critical tasks such as installation, maintenance and repairs, technicians can spend valuable time chasing parts – calling depots, driving between warehouses or improvising on-site without the right materials.
When these teams are often already stretched thin by labour shortages, dealing with the consequences of poor inventory visibility wastes hours they don’t have.
As the energy transition accelerates and demand on these essential crews increases, smart, efficient logistics will be crucial to supporting field technicians.
Traditional inventory models based around static warehouses and rigid stock allocations are struggling to keep pace with the demands of today’s energy sector. A new approach is needed to guide the industry through Australia’s transition and into the future energy system.
This means:
- real-time visibility across all locations, from central warehouses to field vehicles
- smart forecasting tools that position parts where they’ll be needed most
- seamless logistics that deliver to technicians quickly and reliably, no matter their location.
These solutions will form the foundations of a responsive, resilient supply chain, one that is ready to lead Australia through its energy transformation.
The future of field logistics
As Australia and New Zealand’s leading field services inventory management software provider, Droppoint is helping businesses bridge the inventory visibility gap in the Australian energy industry.
The company’s approach is simple: get the right part, to the right place at the right time – every time.
Rather than relying solely on a traditional warehouse model, Droppoint combines digital material tracking, distributed logistics and a network of 24–7 pick-up and drop-off (PUDO) locations.
As a managed service provider, Droppoint partners with best-in-class carrier partners and storage providers to create custom logistics solutions to field service teams in the energy industry.
With Droppoint, parts can be delivered close to homes, work sites or one of the 500 conveniently located PUDO sites at any time, eliminating the need for technicians to return to a central depot or travel between sites.
The whole system is coordinated with the support of the MOS (Material Orchestration System), Droppoint’s purpose-built logistics software. MOS brings transport, inventory and location management together to provide a single source of truth.
It allows managers and technicians to manage workflows at every stage of the part lifecycle. From the movement of materials to their use in repairs, MOS provides end-to-end inventory visibility, right down to the serial number.
“The energy sector faces the dual challenge of ensuring operational uptime while managing inventory efficiently,” Flanagan said.
“Droppoint excels where ERP (enterprise resource planning) systems often fall short, delivering effective last-mile visibility for inventory tracking from its source – depot or vendor – to the point of use.”
Built by field service professionals for field service professionals, MOS is designed to keep technicians working, not waiting.
It represents absolute visibility, marking a shift toward more proactive field operations in the energy sector.
Droppoint equips field service teams in the energy sector with the real-time visibility and reliable logistics they need to keep Australia switched on.
For more information, visit droppoint.com.au or chat with the team at booth B6 at Australian Energy Week, from 18–19 June at the Melbourne Convention and Exhibition Centre.
