Success story | Remedies for supply shortages on a large-scale infrastructure project

REMEDIES FOR SUPPLY SHORTAGES ON A LARGE-SCALE INFRASTRUCTURE PROJECT

CHALLENGES

As part of an oil & gas infrastructure construction project, our client was dealing with important supply shortage challenges due to:

• Unexpected and sudden supply shortages affecting both supply of material and construction services
• Multiple supply agreements recalled in an extremely tight supply market

The achievement and completion of the project’s milestones was at high risk. Our client needed support in defining fallback solutions and mitigating risks of budget overrun and project delays. It included splitting scope and reallocating work packages, identifying new suppliers and transferring the work.

SOLUTIONS

Our approach was based on 3 pillars:

• Create a control tower to closely monitor potential supply shortages and supply gaps.
• Establish a dedicated task force to define substitute and alternative solutions.
• Adopt interfaces and responsibilities within the project organization in line with the fallback solutions.

KEY DELIVERABLES

• Enhanced transparency on risk in the supply chain
• In-Budget completion of project
• Project completion within schedule

CUSTOMER BENEFITS

• 10% supply volume initially impacted and finally de-risked
• 0% budget overrun due to resilient redefinition and execution of the sourcing strategy
• 0 major deviation from the project plan thanks to feasible and effective fallback solutions

Download PDF