Supply chain ManagementConstrains

in project and operation environment in Sudan

White Nile Sugar Project /Company WNSP/C

KENANA Engineering & Technical Services KETS

Prepared By : Eng. Disougie Elwagie, PMP , PRINCE2 practitioner

Supply Chain Manager, White Nile Sugar ProjectSenior member PMO , White Nile Sugar ProjectKENANA Engineering & Technical Services, KETS

Supply chain constrains

Supply chainProject / Operations

SudanWNSP/C

1. KETS supply Chain approach 2. Introduction to WNSP/C3. Why Sudan 4. Why WNSP/C5. Supply Chain Main constrains6. Constrains in projects environments7. Constrains in operation environments8. Supply Chain & Risk Management 9. Controls10. Why supply Chain

Contents

KETS supply chain approach

• Aligning supply chain with programs and projects Management approaches• Aligning supply chain with clients

(company) benefits

• Location: 170 Klm southern Khartoum on the east side of the White Nile River

• Total Area 160,000 Feddan (Acre)• Planted area 130,000 Feddan – Sugar cane 105,000 Feddan – Cash crops 20,000 Feddan – Forests 5,000 Feddan

• Factory Crushing capacity 24,000 Tons/day• Sugar Production 450,000 tons annum• Ethanol Production 60,000,000 Liter/ year• Power Production 104 MW• Project cost 1.1 billion USD

Introduction to WNSP/C

• Company – Board of Directors – General Manager– Departments (Finance, Supply Chain, HR, internal Audit

etc…)• Project – Project Executive Director– Tasks Manager (agric, irrigation, factory, civil, etc…)– PMO (planning, contract Administration, budget

control)

WNSP/C Management Model

• Procurement Management (materials, services, machineries etc…)

• Logistics Management (clearance, transportation and handling)

• Stores Management • Warehouses Management (final products)• Others ( Government Bodies Management such as

custom, SSMO , free Zone authorities, ports authorities, investment authorities, ministries of industry, agric, finance etc…)

WNSP/C supply chain Management

SCMScope

ProcurementLogistics

Warehouses

StoresGovernment

Liaisons

• Development country• Political and Economical difficulties• Sudanese business nature• Long lead process in private and government

sector• New approach in Sudan (Its Practiced but Not fully

developed and utilized)

Why Sudan

• Mega project / company• Sugar business nature (integrated agro industrial)• Normal Projects difficulties (scope, time, cost and

quality)

Why WNSP/C

• knowledge (scope)• Knowhow (experience)• Procurement Common practices (small, medium and

major procurements)• Logistics Common practices (delivery terms,

concessions, etc…)• Stores and warehouses Common practices• Internal Interactions• External Interactions

Supply Chain Main constrains

SCMD

COMPANY PROCEDURE

S

contract administration

BUDGET/ FUNDS

Project Management

PROCESS

VENDORS MANAGEMENT

GOVERNMENT AND OTHER STAKEHOLDERS

SCMD

• Scope Management • Time Management • Cost Management • Funds Managements • Variation and change Management

Constrains in project environment

• External Interactions mainly with – Government– Contractors

• Internal Interactions with projects Managers– Time– Scope– Quality

Constrains in project environment

• Operation Management – Value of money– Value of goods or services– Delivery value– value of inventory

• Planning Management – Ordering time – Specifications – Delivery methods

Constrains in operation environment

• Cost Management– Value of money –Quality –Quantity

• Internal Interactions with – Head of Departments– Staff

• External Interactions with – Government (taxes, VAT, concessions, etc…) – suppliers (Quality, quantity, delivery terms)

Constrains in operation environment

• Supply chain is a major Risks trigger– Cost (value of money Vs budget)– Time (delivery Vs schedule/s)– Quality (Quality Vs Scope)– Quantity (Stocks Vs needs)– Delivery methods (delivery Risks (DDU))

But in same time supply chain could be an excellent risk mitigation and a control tool

Supply Chain & Risk Management

1. Supply chain operating expense as a % of sales. 2. Value and % of spend with preferred suppliers.3. Procurement operating expense as a % of procurement spend. 4. Supply Chain cost savings as a % of spend. 5. Logistics and transport cost per unit. 6. Customer % On Time and in full (OTIF) delivery . 7. Value of material shrinkage and obsolescence. 8. Inventory turns. 9. Value of stock count variance (Book Vs Physical count). 10.% of staff that have passed accredited training programs

Some potential supply Chain performance controls

• In Projects & Operation – Better Strategic planning – Better Financial performance – Better Resources utilization– Better Risk management

Why supply chain ?

• Institute for Supply Management™ (ISM) defines supply management as the identification, acquisition, access, positioning and management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives.

• Supply management activities include:1. Purchasing/procurement2. Contract development and administration3. Negotiations4. Transportation and logistics5. Physical distribution and warehousing6. Inventory control and management7. Strategic planning / sourcing8. Product / service development9. Manufacturing10. Problem solving11. Relationship management12. Supplier evaluation13. Economic forecasting14. Materials management

Supply Chain Management

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