On Projects and the Supply Chain - Is Relationship Building Ensure Success? .. Your Career Questions Answered..

I have to answer this question immediately since , the letter sender was the person who appeared surprisingly at Jeddah International Airport and accompanied me till I reached Singapore.To you my Best Friend...Salam... I love you dearly together with Sir Jun, Sir Jojo, Sundaram and Abdullah of STC. "

The question came from the Distributor of Toyota-KSA

The answer
Good supplier relationships and a well -managed supply chain can improve a project performance. As each project is unique, the relationship with suppliers may be different from those of business as usual; even if the same suppliers are used.

It is important that suppliers understand what is needed. This may mean a carefully worded contract or product description. A project team , during the initial phases , should consider all the options available to ensure that the solution that a supplier is asked to deliver is the best way of addressing the business opportunity. This creates opportunities for improvement or innovation.

Working with suppliers on planning delivery timing and inventory planning information can help to ensure that the project's work happens in the most cost effective way. For some materials, just in time delivery will be appropriate as in any business as usual process. For other items, bulk shipment will provide the project team with discounts or flexibility.

Supplier Involvement
Supplier cooperation generates possibilities for increased innovation based on mutual knowledge of aims, but this must be balanced against the need for open competition to get best value. Every project should have a communication plan, with suppliers included to ensure the project can run smoothly.

Using supplier knowledge during the initial phases can reduce the cost of implementation. For example, a project specified configuration of PCs for a national roll out of new systems. Input from the supplier showed there was an alternative configuration with better predicted longevity of licensing , with savings of 10% of whole -life costs.

Where a project's success is based on the acceptance of its efforts in a marketplace or community , there is often benefit in involving more of the supply chain to open opportunites.

Supply Chain in Action
To illustrate the relationships: Suppliers A, B, and C work in the operational business and suppliers D, E,F and G are contracted soley for the project.

Supplier A is important to the operations of the business and helped define the project. Supplier A acted as an expert consultant in the planning phase. Supplier D supplies to some of the organization's main customers and ensures the customer view is well represented. Supplier B was asked to review the plans based on their experience.

Supplier E was involved in planning what and when inventory would be delivered. This maximized financial efficiency for the business , ensured the project was never delayed and allowed the supplier to plan his own business reducing overall costs in the supply chain.

Suppliers F and G were used in the execution phase for well defined items where delivery dates were more flexible or commodity items available from many sources were required.

Supplier C was used in execution to integrate project work into their business as usual work for organization. Supplier C also participated in the review of project success ith senior management three months after the project completed. Their experience of the changes the project was designed to bring senior management the opportunity to see benefits had been realized.

Again thank you for taking care of me.. My appreciation..