AEP Sustainability - Procurement

Supply Chain and Procurement - Non-fuel Suppliers

AEP purchases billions of dollars in goods and services every year, ranging from chemical solvents and office supplies to vehicles and industrial equipment from national, regional and local suppliers. As a large company, we are able to manage costs by negotiating prices, strategically sourcing and managing inventory. By applying a procurement-category management model, we can look at the whole value chain from sourcing through inventory.

We continue to improve efficiency through strategic sourcing – optimizing what we buy and how we buy it to manage inventory and costs as well as provide standardization in our purchasing practices. Our procurement team gets involved earlier in the purchasing process to educate employees on best procurement practices.

We continue to seek opportunities to deploy technological solutions. In 2018, we went live with a robotic process automation solution in Asset Recovery that streamlines the scrap metal billing process. Additionally, we have launched a barcoding and RFID technology project to improve the materials management activity throughout our operations.