Supply Chain PMO: Success with MP

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A company’s success often depends on how well it has integrated and standardized its supply chain. After all, supply chain management is the process of how a product is made and distributed. Whether it’s a physical product, a service, or even a piece of software, a strong supply chain is critical. Identifying where there are gaps, inefficiencies, and areas of opportunity within your organization’s supply chain is the first step in achieving operational excellence.

In this article, we will discuss the challenges that affect today’s supply chain projects and how MIGSO-PCUBED partners with our clients to create the best future supply chains.

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Working in Today’s Supply Chains

Across all industries, supply chain challenges remain the same – raw materials shortages, backlog management, transportation/delivery delays, supplier management, misuse of data, and lack of partners’ communication, coordination, and collaboration.

During the COVID-19 global pandemic, many supply chains took a dramatic hit. Manufacturing sites were forced to close, adhere to a smaller workforce, accept lead time increases of +8 to 12 months, and adjust to more expensive and longer transportation lanes. Stock shortages were apparent and supply chains were struggling across most industries.

As we move away from crisis management due to the pandemic, it’s important to learn from the damaging effects it caused and focus on how to create less vulnerable supply chains for tomorrow. This is where MP can provide operational support. As project management experts, we provide structure, organization, and methodologies that drive project success and on-time delivery.

For example, MP was brought on to help an aerospace client manage the backlog of a transfer of work due to a rapid shutdown. A supplier was suddenly found responsible for taking on the manufacturing of this site and left with poor procurement and quality performance. MP was able to assess, restructure and create a recovery plan which included moving production to another site to meet production targets. Today the client and its supplier can run operations smoothly and continue to partner thanks to MP project support.

Our approach is always to partner with clients and allow them to focus on strategic tasks and be experts in their line of work. At the same time, we tackle projects that have either failed or for too long remained in the pipeline without proper execution. Together, we help organize and deliver projects that fit the needs of their supply chain strategy with the intent of passing them on to you for sustainable operational use.

Setting up a Supply Chain PMO

One of the ways an organization can oversee and optimize its supply network is to set up a PMO specialized for these activities. A PMO is an organizational structure used to standardize the portfolio, program, or project-related governance processes and facilitate sharing of resources, methodologies, tools, and techniques. A Supply Chain PMO serves the same purpose, but it specializes in managing an organization’s supply network/activities/etc.

The key benefits of a Supply Chain PMO include:

  • Structured governance with improved transparency and communication.
  • Well-organized data to keep projects on track and report on the status.
  • Relevant tools for reporting and managing shared resources.
  • Strategy with a customer focus.
  • People and cultural sensitivity.
  • Clear processes.
  • Improved overall project success rate through alignment with the business strategy.

The major components of a Supply Chain PMO are Supply Chain Management, Operations Management, Logistics Management, Supplier Performance Management, Procurement Management, and Master Scheduling Management.

To set up a successful Supply Chain PMO it’s important to assess the current state of the company’s supply chain and analyze what works and what doesn’t. If something does not work, why? What projects have been in the pipeline? What resources have been allocated, and are they meeting the project plan and budget?

More recently, MP was assigned to a client’s supply chain PMO in Canada with main activities tailored around procurement and supplier management in an aerospace environment. Upon project initiation, MP aligned the long-term strategy with the client, mapped out existing supplier processes, evaluated internal and external stakeholders, and clearly defined a statement of work. As procurement project managers, consultants in the PMO were responsible for sourcing new suppliers and drafting RFPs and RFQs before aligning with the client for approval and awarding business. For existing suppliers, the project managers were on site and ensured proper follow-up on raw materials and parts to the client. As stated on project ramp-up, this is a long-term project that continues to be in progress today with growth opportunities.

Partners in Supply Chain Project Management

Project Management expertise is important for developing and improving supply chain management capabilities. However, it is by partnering with our clients, who are the experts in their own supply network, that we provide value. MP relies heavily on the client’s expert judgment to identify areas of opportunity in their supply chain. As project managers focused on people, processes, and tools, MP acts as a co-pilot to drive innovation and deliver desired targets.

With a portfolio of projects across industries like aerospace, automotive, technology, energy, and pharmaceuticals MP has seen and studied many diverse types of supply chains. For instance, to reduce manufacturing time, product-to-market time, and create a safer, more consistent, and more efficient process, a pharmaceutical client launched into a Manufacturing 4.0 environment.

Proper scheduling, governance, an agile framework, and digital dashboards were the strengths that MP was able to provide the client. With alignment and effective communication from all global stakeholders along with a detailed project plan that accounted for change control, the client was able to implement the desired changes into Manufacturing 4.0 by the end of 2021 and has a roadmap for total transformation by 2025. 

Why MIGSO-PCUBED?

To continue evolving to meet customer demands, increase speed to market and focus on quality, supply chain needs transformation. Efficient supply chains must be streamlined, automated, and digitized, and MP is equipped to take on your supply chain projects to help your business transform.

Our 30+ years of experience specializing in project management consulting allows us to continuously refine our own approach to fully understand client needs. With a worldwide physical presence and partners across industries such as pharmaceuticals, energy, automotive, aeronautics, and technology, we have a proven track record of success. Proper definition, planning, structure, tools, and methodologies will launch your projects towards excellence and the world’s largest project management consultancy is here to help.

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