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SCM Project Phase Involvement

Maximize value, opportunity and certainty of outcome

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Benefits to early Procurement involvement: (Initiation & Planning phases)

Adopting all or part of the supply chain tasks identified in each phase of a project, clients will benefit from greater certainty of delivering a project as per initial schedule and budget. Understanding the supply market, its capacity, capability and technical alignment opportunities provides more surety for the stakeholders early on. Knowing the options available for the project                                                                                                                                          engineering and delivery approaches, and the                                                                                                                                                    opportunity to strategically align with critical suppliers                                                                                                                                    early empowers the business in its ability to influence                                                                                                                                      and control the project outcome. In Fig. 1, the green                                                                                                                                        curve for Materials, Equipment, Services includes as a                                                                                                                                      minimum the market analysis, preliminary strategic                                                                                                                                          supplier opportunity, early risk identification, lead time                                                                                                                                    and initial cost checking. 

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Strategic Suppliers & Contractors early inclusion: (For consideration only)
 

Where a project has a high degree of complexity, certain new or challenging technologies, critical equipment, tight schedule and many other considerations, it can be very beneficial to the project outcome, e.g. cost, schedule and performance of final product, to involve third-party companies as early as possible.

These benefits include:
 
  • Early technical deliverables, reducing risk of main engineering delays and reduce actual engineering hours

  • Locking in resources and production slots, guaranteeing that part of the scope and schedule

  • Costs are identified early, changes have less impact on the overall budget

  • Less changes required later in the design phase, further reducing cost and schedule creep

What 5C Contracts does in these phases:
 
  • Market analysis

  • Define the delivery options

  • Work with the client team to select the engineering team(s) and, potential early strategic suppliers and contractors

  • Assist with the negotiation and formation of these early engagements

  • Designing deals that accommodate the stage gate approval approaches and cash constraints

  • Develop project procurement plans

  • Provide Owner representative services on commercial & contractual matters

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