Construction and project-centric businesses have to manage their supply chains more to minimize overall project failure than just to reduce costs. Project-centric businesses use their supply chains to manage risks. Supply chain costs are secondary than the risk of inadequate resources or meeting critical project deadlines and deliverables. Project-centric businesses must look at the total project cost instead of supply chain costs in isolation. To that end, project-centric businesses are using supply chain systems to provide better visibility, less risk, lower total costs, and strengthen supplier relationships.
SupplyChainBrain has a great article, Lifting the Burden of Project-Centric Supply Chains. This article talks about the five drivers of project-centric businesses: risk, cost, cash flow, time, resources. Additionally, enterprise systems are now increasingly being used by project-centric businesses for visibility and control, strengthening supplier communications, managing risk, and even managing return on investment (ROI).
