Companies where business model relies heavily on delivery of projects need to ensure that all their operations are well planned, well executed and most importantly well aligned to meet strict deadlines and project objectives. Turnkey projects need to be carried out under heavy pressure of management who want to meet deadlines, increase profitability and reduce costs at each step, and in the end ensure a good to go project. The margin keeps shrinking and so do the resources. In this challenging environment, project leaders need to ensure that their project management capability is flawless, and their operations seamless and quick. This can only happen if the turnkey projects follow a sophisticated supply chain model that connects with project management and delivers high quality results.
A project, in today’s dynamic environment can be deemed a success not only if project management is up to the mark. It requires much more and that is where the significance of supply chain management comes into the picture. A successful turnkey project is one that has a strong mix of project management and a robust supply chain model, one that ensures reduction in costs, better communication among all stakeholders and finally delivers high quality products or services, well within deadlines.
During a project, there can be a number of things that can go wrong. To begin with, project team may have no idea about raw material or manufacturing processes. Businesses may find that resources are not being managed well enough or late penalty fees are being slapped. Another issue could be that the supply chain is operating in silos and has no visibility of the project from a central perspective. Such issues hamper successful fulfilment of projects. Supply chains need to be overhauled into a better project-driven model that offers several advantages.
Managing complicated projects that are under strict quality checks and deadlines is not an easy task. It requires integrating project and program management tools with superior supply chain technologies. Project-driven supply chain enables management to build a supply chain strategy that takes into its folds end-to-end operations to ensure seamless communication among disparate operations, enhanced compliance and ultimately better delivery of finals goods and services. A project-driven supply chain enables the organization to understand and measure strategic project objectives, enhance collaboration, material planning, decision-making, and operation execution throughout the project lifecycle.
When operations are carried out in separate groups, it not only dissuades managers from gaining an overall view of the entire project but also it can lead to a disconnect which may have adverse impact on the quality and quickness of operations. There may be unseen shortage of material, money, or downtime which can negatively affect the entire chain of operations. Functional silos thus create a gap between supply chain operations and the project management team, leading to an increase in project risk, and can have a significant impact on the top and bottom line of projects. With project-driven supply chains, managers can get a view of the overall project, allowing them insight into how different operations can be tweaked or better managed to improve efficiency and achieve projects goals faster and more effectively.
One of the most important advantages of project-driven supply chain management is that it allows managers to take stock of real time information. This way they are in a better position to take decisions regarding manufacturing capacity, delays, extra costs, or wastage. This enables better adherence to project deadlines and reducing unwanted delays or costs.
Project-driven supply chains thus help to identify operational gaps and ensures informed decision making. It enhances communication and ensures that the supply chain and project management are on the same page, thus mitigating risk and increasing potential for profits.