The purpose of project driven supply chain is to cater to the needs of manufacturing and asset-intensive companies by supporting their business processes. Specifically, it focuses on facilitating supply chain operations within the framework of a specific project. Notable examples include the handling of high-tech and industrial turnkey installations, as well as the delivery of intricate products and services tailored to individual customer requirements. In such scenarios, all supply chain activities – ranging from order management and procurement to material management, manufacturing, sales, and service – are strictly distinguished according to the corresponding project. This segregation guarantees the seamless integration and overall coherence of the entire supply chain, encompassing both the flow of goods and associated costs.
Implementing an integrated supply chain solution centred on projects offers advantageous outcomes to sales, project management, design and engineering, logistics, manufacturing, and finance operations. This integration leads to enhanced operational efficiency and increased profitability for the company.
The proper execution of a project often demands the segregation and valuation of inventory in accordance with the sales contract. Additionally, it necessitates capturing the expenses related to supply chain activities as project expenditures and invoicing them based on the regulations stipulated in the project contract. The Project-Driven Supply Chain platform allows the achievement of this segregation within each organization, facilitating simultaneous support for all supply chain processes within each project and organization or a combination of organizations. Moreover, organizations enabled for projects can also simultaneously manage non-project striped material and processes, thereby significantly augmenting flexibility. PDSC can also be leveraged in an asset-intensive setting to effectively oversee the construction of assets like cellular networks or gas pipelines, with strict adherence to corporate budget and schedule, while ensuring compliance with regulatory obligations. Moreover, PDSC serves as a versatile feature that encompasses all facets of Supply Chain, including Procurement, Inventory, Manufacturing, Ordering, Shipping, and Costing. It seamlessly integrates with our Projects and Project Accounting, making it a robust feature of Supply Chain Management that offers numerous advantages to various customers, industries, and application scenarios.
Manage Inventory by Project
To ensure adherence to contracts or streamline project operations, the goal is to effectively handle project-specific materials for multiple projects without the need for creating separate inventory organizations for each project. Often, materials are procured at project-specific price quotes to meet project requirements. Consequently, it is crucial to monitor the materials and determine their value based on the respective projects. To ensure the segregation of project-specific materials throughout the entire warehouse process, it is imperative to have the capability to automatically receive, pick, and ship project-specific materials by project without any manual intervention. Using the PDSC solution allows you to effectively handle and oversee inventories that are specific to each project, eliminating the need for separate inventory organizations. Additionally, you can effortlessly adhere to project quotes and contracts by maintaining precise valuations that are tailored to the project. By automating the processes of material receipt, picking, and shipping, you not only enhance operational efficiency but also reduce labor expenses.
Transfer Project Specific Material
In a project-driven supply chain, it is essential to have the capability to efficiently transfer project-owned materials from storage to the intended usage location, while ensuring their segregation throughout the process. It is also crucial to properly account for the costs associated with material transfers in and out of a project. The PDSC solution enables you to optimize your inventory management by reducing the capital tied up in stored inventory. Additionally, it facilitates the expedited completion of project schedules by maintaining centralized warehouses and transferring materials to the points of use as per task requirements.
Purchase Materal on Project
In order to meet the demands of a particular project, it is customary to procure materials specific to that project. By using project-specific purchase orders, the expenses incurred for these purchases are attributed to the project, ensuring compliance with project-specific supplier agreements and facilitating the inclusion of the materials in the project inventory. With the implementation of the PDSC solution, the process of procuring project-specific materials at project-specific prices can be automated for multiple projects.
Manufacture Goods on Project
Executing each work order in the context of a project is crucial when utilizing a manufacturing plant and its resources for multiple projects. This ensures that the correct materials and resources are employed, while also accurately allocating manufacturing costs to the respective project. Furthermore, it is imperative to utilize only the appropriate raw materials and sub-assemblies designated for each project-specific manufacturing work order, and to store the completed products in project-specific inventory. Our PDSC platform allows you to compartmentalize your manufacturing operations, enabling the servicing of multiple projects using a shared pool of resources within a single plant. This capability empowers you to cater to multiple customers across various projects, efficiently manufacture products requiring project-specific research and development or services, as well as produce assets for corporate utilization.
Maintain Assets on Project
If an organization's resources carry out maintenance tasks on multiple projects using materials owned by the projects, and you aim to track all costs as project expenses, then the Project-Driven Supply Chain feature can be utilized. By implementing PDSC, you can effectively categorize your maintenance operations to cater to multiple projects using a shared pool of resources within the organization. This enables you to fulfill various maintenance contracts across projects and generate invoices for customers based on the agreed contract terms rather than the maintenance work's cost.
When working on various contracts from a single organization, it is essential to separate your supply chain inventory and activities in order to prevent the mixing of materials and other expenses. In such situations, there is no requirement to maintain budgets, commitments, costs, and revenue within a project entity. Instead, the supply chain costs are managed within the supply chain itself, and the invoicing is done through order management following shipment. By utilizing PDSC, you gain the ability to compartmentalize your supply chain operations and efficiently cater to multiple projects using a shared pool of resources within the organization.
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