The tools and techniques pertaining to project management can be, in fact, implemented in other areas as well, including the management of supply chains. The processual nuances characteristic of both management areas can be tackled with the usage of common techniques aligned with the most critical management principles and best practices, which are perfectly liable to integration. Managing a supply chain, just as project management, requires planning and shareholder solicitation, human capital outsourcing, technology maintenance and monitoring, performance monitoring, and a timely conducted closure (Wells, 2012).
With regard to the first stage, strategic procurement is the technique proved successful for large-scale industrial projects involving the selection and retention of suppliers long-term (Azambuja, Ponticelli & O’Brien, 2014). On the monitoring stage (which is actually inherent to the whole process), the technique of project learning can be implemented, with the usage of tools such as recording to systematically retain the project experiences and document the technical aspects of supply (Stettina & Hörz, 2015; Schindlera & Eppler, 2003). Risk calculation is another valuable technique universal for project management and supply chain management and essential for dealing with assorted uncertainties (Porananond & Thawesaengskulthai, 2014).
The sustainability goal has become the driving force of any project and the overarching goal of its managers. On the quest to sustainability, organizations and leaders have to account for their position in the market and against their rivals. The role of competencies here is to create a competitive advantage that the rival businesses will have a hard time matching (Nidumolu, Prahalad & Rangaswami, 2009). To acquire new competencies, companies have to use the old ones, thus constantly upscaling their excellence, while at the same time accounting for all possible risks and the needs of their customers.
As a petroleum engineering establishment, our organization pays much attention to sustainable practices and management. We are consistently making use of the green supply chain, which serves as a guide for our corporate governance and project management practices. We use the green chain directives to explore, produce, refine, market, and sell and regard it as a framework for our projects, with many inherent operations present on each stage. For instance, the necessity to configure (explore) comes in the form of facility capacity alignment and technology adaptation with a view of what the shareholders and customers expect from an establishment on its way to sustainability.
In recent years, the oil and gas industry has gone beyond the Uniform Commercial Code; a considerable shift in market requirements drives the change towards more sustainable practices in all respects, especially the supply chain. Every project is aimed at innovating the supplies and products and drive it towards zero-emissive, sustainable outcomes; in other words, the industry is consistently going green. This overarching goal encompasses the management of the supply chains and projects. The way to sustainability is challenged, primarily, by internal inhibitors such as costs, although some outer aspects such as regulations, lack of suppliers’ commitment, and industry-specific challenges add up to creating a barrier between the status quo and sustainability goals.
Global organizations deal with greater uncertainty than smaller-scale establishments, which is why reducing the cultural and operational uncertainty when contracting the vendors is highly commendable. Long-term planning is critical when communicating with suppliers such as China and other distant suppliers, just as maintaining 100% transparency and not skimping on quality resources and investment.
Bibliography
Azambuja, M. M., Ponticelli, S. and O’Brien, W. J. (2014) ‘Strategic Procurement Practices for the Industrial Supply Chain’, Journal of Construction Engineering and Management, 140(7), n.pag.
Nidumolu, R., Prahalad, C. K. and Rangaswami, M. R. (2009) ‘Why Sustainability Is Now the Key Driver of Innovation’, Harvard Business Review [Online]. Web.
Porananond, D. and Thawesaengskulthai, N. (2014) ‘Risk Management for New Product Development Projects in Food Industry’, Journal of Engineering, Project, and Production Management, 4(2), pp. 99-113.
Schindlera, M. and Eppler, M. J. (2003) ‘Harvesting project knowledge: a review of project learning methods and success factors’, International Journal of Project Management, 21, pp. 219-228.
Stettina, C. J. and Hörz, J. (2015) ‘Agile portfolio management: An empirical perspective on the practice in use’, International Journal of Project Management, 33, pp. 140-152.
Wells, H. (2012) ‘How Effective Are Project Management Methodologies? An Explorative Evaluation of Their Benefits in Practice’, Project Management Journal, 43(6), pp. 43-58.