Definition:
Potential disruptions caused by supplier reliability, material availability, or geopolitical factors impacting project execution.
Key Components:
- Supplier Reliability: Evaluating the track record of vendors.
- Logistics Planning: Managing material transportation risks.
- Alternative Sourcing: Diversifying suppliers to reduce dependencies.
Use Cases/Industries:
- Energy Projects: Managing fuel supply for power plants.
- Infrastructure Development: Sourcing raw materials globally.
- Manufacturing: Ensuring semiconductor supply continuity.
Advantages:
- Enhances Project Stability: Reduces likelihood of delays.
- Improves Budget Accuracy: Accounts for realistic procurement timelines.
Challenges:
- Global Uncertainties: Trade disputes, tariffs, or pandemics can disrupt supply chains.
- Lead Time Issues: Long procurement times delay project schedules.
Related Terms:
Procurement Strategy, Logistics Management, Risk Mitigation
Example:
An oil refinery expansion was delayed six months due to vendor supply chain failures in steel pipe delivery.
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Synonyms:
Procurement Risks, Logistics Challenges, Supply Chain Disruptions
