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strategy and business
 / Summer 2005 / Issue 39(originally published by Booz & Company)


Supply Chain Lessons Can Save Capital Projects

• Deploy adequate organization and governance processes. Deficiencies in corporate structure and culture can be obstacles for companies trying to limit capital project costs. If the projects are going to be viewed by their commonalities, it is equally essential that companies develop capabilities at the corporate level to handle activities common to all projects through a leaner support infrastructure for procurement and contract management.

Once companies realize how essential capital projects are to their operations, their adoption of supply chain management techniques for managing capital projects can drastically alter the traditional relationship with key suppliers and unlock incremental value. This approach requires a fundamental shift in thinking, but is gaining momentum in several industries. It is a trend no company can ignore.

Author Profiles:

Matt McKenna ([email protected]) is a vice president with Booz Allen Hamilton in Houston. He has more than 20 years of experience in helping clients across industries improve their business performance.
Herve Wilczynski ([email protected]) is a principal with Booz Allen Hamilton in Houston. Working with companies in various industries, he specializes in supply chain management, manufacturing strategy, and large-scale transformations.
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