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Project management companies rely a lot on the cash flows of the project. How supply chain can play a role in project management companies to table healthy cash flows?
Share your ideas and real-life experience.
Project management has three components namely , scope , time and cost. SC management directly impacts two key Time and cost.
Project management has three components namely , scope , time and cost this makes the famous PM triangle. SC management directly impacts two key components of PM I.e Time and cost.
Time: with efficient SC management, resources required to accomplish certain project can be greatly managed while focusing on material delivery timelimes and also through vendor prequalification to ascertain vendor's capability to deliver goods and service within stipulated timeframe. Moreover, delivery delays translate into cost escalation of total project cost.
Cost: SC management is the best tool to select right material at right price amoung multiple sourcing available options while remaining within project cost budget. This may encompass hiring of professional services for the project or sourcing of material. Sc management also helps to carry out variance analysis for better understanding of cost trends so as to develop cost optimisation model.
Bottomline: without SC management, PM becomes an exercise in futility.
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