Why is Supply Chain always working on projects?

 

 

Recently I spoke about Supply Chains to students of a post-graduate business program. During the Q&A session, one of the students raised her hand and asked what the difference between supply chain operations and supply chain project management was.

 

 

Indeed, what is it?

 

I sensed a hint of workload-related frustration in the student’s voice, so I asked: “I am curious; how would knowing the difference help you?”

 

She said: “Well, I am a Supply Chain Analyst in the Operations Department, but I don’t know anymore; I mean, sometimes I find myself involved in special tasks and projects, and although it is frustrating, it seems like if those improvements don’t get done, then operations processes will fail. It seems projects are just a part day to day operations.”

 

She was as clear as crystal. And I could understand and relate to her frustration. 

 

In theory, Supply Chain Operations is an ensemble of continuous processes aiming to deliver existing products and services to clients. Such as: Order fulfilment, receiving or shipping materials, etc. Supply Chain Project Management englobes the tasks associated with improving existing operational processes or implementing new ones, like launching a new inventory system or sourcing a new supplier for a new product. Project management is temporary, while operational tasks are ongoing and permanent. 

 

You probably already know the theory, but the critical question is, WHY DO SUPPLY CHAIN TEAMS ALWAYS HAVE PROJECTS TO IMPLEMENT on top of the already demanding operational work? 

 

In my experience, it is because Supply Chain processes, more than other departments, are closely linked to the business dynamics between the company and its clients. 

 

Consider this:

 

Companies are constantly dealing with competition. With themselves and with other companies. Competitors best each other primarily in these elements:

 

• Costs 
• Quality 
• Delivery times
• Product or service innovation
• and increasingly in sustainability. 

 

Supply Chain is the area of the organization with more significant influence over these elements.

 

We improve costs with more intelligent sourcing, better forecast and inventory management, etc.

 

We improve quality with exceptional suppliers, material compliance, efficient material flow engineering, flawless packaging, etc. 

 

Delivery times are all about supply chain. Need to launch new products faster? More flexible supply chains will help you achieve that, and sustainability is centered around supply chains.

 

So, as the student in my talk said, projects are just part day to day operations. And they are essential for a company’s growth and survival. 

 

While excessive workload or lack of clarity on employees’ roles and responsibilities can be frustrating and must be addressed by the company’s leadership, remember outgrowing a company’s resources is a by-product of growth. It means our clients are more than just ordering our products; we are being asked to improve, innovate, and optimize. These are signs that we are “in the game”; we are moving along with the industry and with the markets, and there is where we want to be. 

 

A company’s leadership will do well to create a culture that embraces the feeling of never really being done designing and integrating their supply chains. It means the company is getting orders from clients with new requests and challenges; it means we are clinging to the industry and the markets.  

 

When Supply Chains processes are not being challenged, we have to worry. Especially post-graduate students, who will soon occupy leadership positions in many companies out there. 

 

So, embrace supply chain projects! 🤓 💪

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By: The Ana Lovera Inc and Sourcing Values Editorial Team. Copyright 2023.

 

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