How Fluence’s Global Innovation Center in India Serves as a Hub for Digitization

As a Chief Supply Chain and Manufacturing Officer, Peter Williams is responsible for all aspects of the end-to-end supply chain including strategic sourcing, procurement, manufacturing, logistics, safety, planning and quality assurance at Fluence.

Williams brings more than 20 years' experience and a proven track record in operational excellence, supply chain transformation, contract manufacturer management, merger and acquisition integration, and organization development to support Fluence’s continued global growth and expansion. Before joining Fluence, Williams served as Senior Vice President, Global Operations and Supply Chain for Rogers Corporation. Prior to that, he served as Vice President of Global Operations for MKS Instruments. He has also held senior management positions in Operations at Photon Dynamics and Applied Materials. Early in his career he was a Spacecraft Systems Engineer for Lockheed Martin Corporation. Excerpts from an exclsuive interveiw with CIOL.

AI is the buzzword now. How is Fluence specifically using AI to streamline things like manufacturing or managing suppliers? How has it redefined traditional SCM approaches?

Recently, we underwent a digital transformation, digitizing all our datasets and processes holistically across the business. We use SAP as our backbone ERP system, integrating all legacy applications and datasets into a single digitized solution. This transformation enhances scalability, improves resource efficiency, and optimizes economies of scale.

We are in the early stages of integrating AI holistically throughout our business. In our sales organization, AI accelerates our sales processes and customer interactions. Within supply chain planning, AI enables efficiency and creativity in our integrated business processes (IBP), aiding inventory management, and financial planning alignment. Additionally, AI enhances administrative processes by improving workforce efficiency, allowing our employees to focus on value-creating activities rather than administrative functions.

For Fluence, this AI-driven approach is still in its early stages, but it provides us with a competitive advantage in cost structure, technology focus, and customer value creation.

How has the evolution of data in SCM transformed the industry? Given the integration of logistics, manufacturing, and Industry 4.0, how is Fluence leveraging data for competitive advantage?

Data plays a crucial role in optimizing our operations. Fluence operates on a capital-light business model, leveraging external manufacturing. Industry 4.0 and advanced analytics are integrated not only within Fluence but also through our manufacturing partners, ensuring supply chain resilience and flexibility.

Data-driven analytics allow for predictive quality management, early defect detection, and proactive process management. These innovations enhance operational excellence, ensuring Fluence remains a leader in its market segment.

Energy storage has evolved significantly, especially with the rise of ESG initiatives. How does Fluence integrate ESG into its business model, and how does it help companies establish ESG benchmarks?

As a renewable energy company, ESG is integral to our business culture and operations. Our approach to ESG within the supply chain involves leading by example. We educate our suppliers on ESG principles, ensuring they understand its importance and align with our standards. We conduct self-audits and third-party audits to verify compliance and drive improvements.
We also act as industry advisors, collaborating with various stakeholders to develop circular economy models, enhance recycling processes, and create monetization strategies for materials recovery. ESG is not just an addition to our business; it is fundamental to how we operate and provide value to our customers.

Digital transformation plays a key role in operational efficiency. Can you highlight some digital innovations that differentiate Fluence from the competition?

Fluence’s key differentiator lies in our digital solutions, particularly in asset operation and management. Our software solutions, Nispera and Mosaic, optimize asset performance, financial returns, and environmental impact:

• Nispera is used for asset optimization and financial performance maximization.
• Mosaic is an industry-leading digital tool that enables asset management and revenue generation on the open market.

Our Global Innovation Center in India serves as a hub for digitization, enhancing integration between hardware and software. Our Smartstack  solution exemplifies this by seamlessly integrating hardware and software for improved energy density, faster commissioning, and enhanced system performance. These digital innovations create significant value for our customers and position Fluence as an industry leader.

What is your strategy for the Indian market?

India is a key emerging market for Fluence, given its rapid renewable energy growth. We have already deployed multiple renewable energy projects. Our “Follow the Sun” methodology enables cost-effective and rapid technology development. With nearly 500 employees in India—bulk of them are engineers—we efficiently commercialize new technologies that benefit both Fluence and the industry.

In supply chain management, we focus on local-for-local manufacturing while also leveraging India as a global supply chain hub. India provides us with a strategic advantage in supply chain resilience and global agility.

What types of partnerships is Fluence forming in India?

India is still developing its renewable energy infrastructure, and Fluence collaborates with local suppliers in related technologies. These partnerships involve knowledge-sharing, business model alignment, and supply chain development. By working closely with Indian partners, we contribute to both local and global renewable energy growth. We also leverage India’s capabilities to expand renewable energy advancements across industries. These cross-industry synergies help strengthen India’s position in the global renewable energy market.

What trends will shape the energy storage industry in the next five years, and how will Fluence scale up in India?

Initially, the energy storage industry was driven by battery advancements, primarily from China. As battery prices decline, the focus has shifted toward hardware-software integration, digital solutions, and power control systems. Fluence leads in this transformation by leveraging systems integration, digital expertise, and advanced software solutions like Mosaic and Nispera.
Looking ahead, the industry may pivot away from lithium-ion batteries toward alternative technologies. However, the key value drivers will remain systems-level integration, optimized customer IRR, and circular economy models. Fluence is well-positioned to lead this transition.

How will developing markets like India adapt to energy efficiency? Do you foresee challenges in Fluence’s growth trajectory here?

India’s renewable energy market is growing rapidly, but success depends on local-for-local manufacturing. Fluence’s strategy is to establish strong local manufacturing capabilities, ensuring that we can meet cost, efficiency, and regulatory requirements while supporting India’s renewable energy transition.