How to Make Project Supply Chain Management Successful

Effective Supply Chain Management is a key success factor in Projects. From our observations, we have identified several best practices that help make Project Supply Chain a success. Some may be counter-intuitive. In our new White Paper 2017-15 ‘Project Supply Chain Management Best Practices and Success Factors’ we examine in detail those specific practices that make Supply Chain successful in Projects.

Logistics risks materialized

Logistics risks materialized

Key best practices include:

Organizational best practices

  • Embed Supply Chain as part of the Project Team
  • Budget properly all Supply Chain positions (in particular for post-award activities)
  • Recognize the difference between supplier and subcontractor

Pre-award best practices

  • Implement a proper procurement planning and schedule
  • Deal properly with long-lead items
  • Implement a tight interface with Engineering
  • Do not seek the lowest bidder – seek the bidder with the highest delivery reliability

Post-award best practices

  • Avoid losing time before the start of manufacturing doing paperwork
  • Do not mix expediting and inspection responsibilities and accountability
  • Implement proper package management on complicated purchases and subcontracts
  • Implement proper timely receipt at site
  • Focus on logistics to avoid losing items
  • Preserve properly
  • etc.

Supply Chain success in a project mainly lies in planning properly and then keeping the schedule. This often means to be careful with promises regarding delivery dates, and taking the safe road of proven suppliers and subcontractors that have a track record of keeping schedule.

Working as a project team is also a key success factor, requiring the Supply Chain team to be deeply embedded within the project team to address as a team the daily challenges of project execution.

Get more detail for successful Supply Chain in projects in our new White Paper 2017-15 ‘Project Supply Chain Management Best Practices and Success Factors’, our second white paper in a series of five on Project Supply Chain!

If you can’t access the link to the white paper, copy and paste the following link in your browser: http://www.projectvaluedelivery.com/_library/2017-15_Project_SCM_Success_Factors_v0.pdf

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