Supply chain project management helps enhance business productivity effectively and efficiently. Therefore, this article will guide you about the process and benefits of supply chain project management.
Table of Contents
What Is the Supply Chain?
A supply chain is the entire network that connects a company to suppliers of raw materials for providing goods or services to the customer. Typically, this includes all the processes related to the creation, storage, and movement of the products.
Typically, the supply chain includes purchasing raw materials and goods, an integrated workforce, procurement of service providers, customer service, warehousing and operation, etc.
Furthermore, the supply chain process includes all necessary parties (directly or indirectly) in fulfilling customer requirements effectively and efficiently. Here are the associated information flows of the supply chain process.
However, as a project manager, you can use project management software to manage your supply chain and supply network effectively without any problems. On the other hand, this software will help you save time and money. To better understand the supply chain, let’s define what a supply chain project management (SCPM)
What Is Supply Chain Project Management?
Supply chain project management (SCPM) is the primary discipline of the business because it helps project managers manage the flow of supplies through all of the phases of the production cycle.
Supply chain project management can apply to the execution phase of the projects, products, goods or services. So, those activities require supply chain management to maintain a steady flow of resources effectively and efficiently.
Furthermore, supply chain management plays a crucial role in the business world because it helps improve the administration section and other areas such as inventory control, quality management, and operations management.
Typically, SCPM is concerned with the following integration,
- Suppliers
- Factories
- Warehouses
- Stores
So that merchandise is produced and distributed in the right quantity, to the right location, and at the right time. Furthermore, SCM will help to minimize total system costs subject to satisfying customer service needs and requirements effectively and efficiently.
Typically, supply chain project requires,
- Managing resources effectively and without wasting
- Mitigating risks efficiently
- Aligning stakeholders
- Impacting customers
- Communicating effectively and without any issues, Etc.
Here are the objectives of supply chain management.
- Satisfy the customer’s needs.
- Maximize the overall value generated.
- Increase supply chain surplus.
- High supply chain profitability.
- Reduce transportation costs.
- Reduce the warehousing cost.
- Improving the visibility of the demand
- Improving the quality
Process of Supply Chain Project Management
- Planning Project’s Needs
According to the manufacturing and control inventory process, project managers must plan to match demand with the supply chain. It helps prevent overspending on warehousing space, slowing down the delivery of products due to poor raw materials for your manufacturing. Read More: why important material management
- Sourcing the Right Raw Materials
Sourcing is another crucial step because you should find relevant vendors who can get the goods and services you need when you need them.
- Making
After sourcing raw materials, you must procure them into the products. Furthermore, that should meet your customers’ demands.
- Delivering without Any Delay
Delivering the product is another crucial step because you can get your final product output during this step. On the other hand, getting customer feedback is vital to delivering customer value.
- Returning
Returning logistics is part of your supply chain process. This process is vital because you have a clear channel for returning your products. The following are some reasons to return products.
- Low-quality products
- Defective or expired materials
Benefits of Supply Chain Project Management
Here are some benefits of using supply chain project management.
- Supply chain project management will help reduce uncertainty and risks in the supply chain process
- SCPM will positively impact the inventory level cycle, including time, business process, and customer services
- Supply chain project management contributes to an overall increase in profitable and competitive advantages
- SCPM leads to creative thinking, which results in innovation and increased productivity
- Improving the flow of information and real-time analytics make this process faster and more accurate
- More accurate delivery estimates help estimate a positive reputation among consumers and enhance customer satisfaction
FAQs
What Are the Five Supply Chain Management Processes?
The supply chain management process includes planning, sourcing, making, delivering, and returning.
What Are the Four Main Elements of Supply Chain Management?
- Purchasing
- Operation
- Distribution
- Integration
What Is the Difference Between Project Management and Supply Chain Management?
Project management is a complex process including ( According to the PMBOK).initiating, planning, executing, monitoring and controlling, and closing.
Furthermore, every project should be managed and controlled according to the project’s triple constraints. It includes budget/cost, scope, and time. Moreover, project managers use various tools, techniques, and methodologies to achieve acceptable project outcomes effectively and efficiently.
Supply chain management is a vital process in the business world. It includes planning, sourcing, making, delivering, and returning. That directly impacts the quality of the products and profitability of the business. Therefore, supply chain managers use various tools to manage the supply chain process effectively and efficiently.
