structural upgrading supply chain development
Value sourcing in the case of structural upgrading investment projects. (English)
| key words |
supply chain entrepreneurship, category management, strategic sourcing |
| objectives | In the context of the Dutch gas production induced earthquakes, consequential damage to buildings and infrastructure require structural upgrading and strengthening measures. These construction investments are typically integrated with other current and anticipated real estate sustainability and maintenance investment projects. The (emerging) supply chains to source from are complex and under constant change due to unchartered territory in terms of expertise, technical norms, legal aspects and litigation. By means of agile procurement practices the critical products, services and financial funds need to be sourced from innovative supply chains. Accordingly the current local exposure to risk and the various stakeholder drivers and emotions need to be addressed in a sound and structured manner. |
| client | regional small and medium sized real estate companies and delegated governments, corporate and business-unit capex investment projects with a total volume of about ten million euros |
| dyads | engineering services and design, construction firms, project management, legal advice, investors, local government and building permits, facility services, operator and co-operators |
| team | architecture and urban planning, heritage consultancy, engineering and technical management, supply chain management, procurement, finance, law, health and safety, public affairs, communications |
| stakeholders | local and regional government, surrounding communities, legislation institutes and code of practice committees, future co-operators, dedicated ambassadors |
| strategic sourcing |
segmentation, supply and demand-side supply chain mapping and power positioning, market-test, negotiation and contract award, risk, opportunity and knowledge management, strategy review |
| tools | work-breakdown structuring and spend mapping, criticality analysis, stakeholder engagement, supplier and market analysis, buyer and supplier power resources specification, purchasing and sourcing portfolio analysis |
| outcome | Capitalisation of future upgrading and damage repair funds to initiate other financial commitments. Segmentation and programming of work to utilise innovative supply chains with improved time to market of bespoke specifications. Sourcing of multiple specialised engineering services and construction categories under congruent power circumstances leading to improved suppliers delivery and quality performance and reduced life-cycle costs. Firm engagement and resource commitments from key governmental stakeholders. |
| lessons learned |
Cross-functional representation within the team and endorsement of outcomes is key to implement the strategy post-contractually and to address and absorb the associated risks. Though financial commitments are necessary to start at the first place, sustainable rents are the key driver to a lasting and meaningful impact for initiators, stakeholders and the community. |
