Role of Project Management within procurement and supply chain

Project management principles are essential in order to successfully manage business change. Initiatives, either improvement or strategic, are commonplace. This is especially true within the supply chain function.

For example, consider the activities that are carried out as part of improvement programs in many organizations these may include:

• Outsourcing key activities like assembly or manufacture

• Moving from a local to global supply chain

• Supplier rationalization

• Deploying corporate deals

• Cost reduction programmes

• Lead time reduction programmes

• Inventory rationalization

• Technology deployment

An all too common issue is where businesses appoint personnel who have no formal project skills or experience to deliver. This lack of experience and use of appropriate tools and methods can dramatically impact cost and schedule and more impact heighten the risk of project failure. 

So what disciplines does project management provide and why is this an advantage? Consider the following

Scheduling and Planning
Risk Management
Quality Systems
Communication

In a sense, project management offers the procurement executive the foundations upon which he or she can build a good, strategic procurement plan. Without the foundations of project management there may be a strategy but no basis upon which to deliver in with the results ad hoc, sporadic and poorly delivered.

-Gazi Sanaul Hasan