In our consulting activities, we are often requested for advice regarding the organization of the Supply Chain processes, the development of associated systems and of the Supply Chain department in project-driven organizations. The proper approach to support projects is always quite different from other industries such as manufacturing organizations. In our new White Paper 2017-16 ‘How to Organize Supply Chain Processes in Project-Driven companies’ we examine what are the key processes for project-driven organizations, why they are distinct, and how to best segregate supply chain activities.
Supply-Chain in project-driven companies requires a different structuring from manufacturing or operating businesses. It is important to recognize three distinct categories of procurement and have identify distinct processes and organization to address them properly. The systems used by the organization to track these during the supply chain cycle also need to be adapted to each type of procurement.
Those three categories are:
- Standard material and equipment
- Engineered equipment
- Services (contracting)
Too many project-driven organizations do not distinguish properly between the different procurement types. This leads to dramatic consequences. The structure we propose is pragmatic and proven and should be more widely implemented.
Our new White Paper 2017-16 ‘How to Organize Supply Chain Processes in Project-Driven companies’ describes in minute details the reasons for this split and why those categories of procurement are so distinct. They even often warrant different departments.
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/2017-16_SCM_suppliers_contractors_v0.pdf
