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Meyerand Torres 2019
Meyerand Torres 2019
the terminology, with some authors using the term “supply Ross (1998) acknowledges the presence of projects in the
chain project” and others referring to “supply chain field of SCM and elaborates on supply chain quality
management projects”. In addition, in most cases an explicit management (SCQM) projects, which “define several key
definition of the terms is missing. The authors show high-impact actions that will provide the channel with the
substantial differences in their understanding of these desired result.” (Ross 1998, p. 280)
projects, with most authors focusing on a narrow field of
what we consider as SCM projects. 3. DEFINITION OF THE TERM “SUPPLY CHAIN
MANAGEMENT PROJECT”
Brinkhoff et al. (2015) focus on supply chain projects
between two supply chain partners. For their study they The overview of related works in section 2 shows that a
define supply chain projects “as dyadic activities between universal understanding of the terms “supply chain project”
existing alliance partners that have already established a and “SCM project” seems to be lacking. The definition
relationship.” (Brinkhoff et al. 2015, p. 181) In the sequel proposed by Brinkhoff et al. (2015) excludes SCM activities
they mention that supply chain projects can also include more within one single enterprise, which are explicitly mentioned
than two enterprises. as SCM tasks both in the definition provided by Ivanov et al.
(2017) and in the SCM tasks proposed by Ayers (2006). In
Ayers (2006) suggests five major management tasks for our view SCM projects need not be started by the company
SCM, namely designing supply chains for strategic headquarters, but can also be initiated by regional divisions
advantage, implementing collaborative relationships within and even by single sites, for example if we consider a
the enterprise, forging supply chain partnerships with outside regional warehousing tender. Therefore, in the following we
companies, managing supply chain information, and develop a more comprehensive definition of the term.
removing cost from the supply chain. Ayers (2010) proposes
project templates for accomplishing these tasks in the form of A project can be defined as a temporary initiative with a
projects, but he does not provide an explicit definition of the defined start and end point, which produces a unique result
term “supply chain project”. (see e.g. Verzuh 2016, Project Management Institute 2017).
Kim and Nguyen (2018) focus on construction supply chains Based on the definition of SCM proposed by Ivanov et al.
and analyse the impact of the relationship between the (2017) and the five management tasks for SCM suggested by
partners on project performance. They conclude that Ayers (2006), we propose the following definition: A supply
collaboration in the supply chain, support and commitment to chain management project is an activity with a unique
the supply chain, and sharing of benefits and risks have a deliverable and a defined start and end point, which focuses
positive impact on the construction project’s performance. on the intra-company and inter-company integration and
coordination of material, information and financial flows, or
Kilger (2015) suggests an approach for the definition of a on removing cost from the supply chain.
supply chain project, which comprises three phases. Kilger
(2015) does not provide an explicit definition of the terms This broad understanding of SCM projects comprises SCM
“supply chain project” and “SCM project”, but he points out activities between two partners in an existing alliance as
that the “goal of SCM projects is to improve competitiveness investigated by Brinkhoff et al. (2015), and also allows for
of the supply chain” (Kilger 2015, p. 281), and that SCM the consideration of projects in which new alliances are
projects are started by the company headquarter. forged. Also the selection and implementation of APS in
supply chains can be subsumed here, and many other
Wetterauer and Meyr (2015) focus on the implementation of initiatives within supply chains which can be pursued by one
supply chain projects and outline five major implementation single supply chain partner or by collaborations of different
phases. Also Wetterauer and Meyr (2015) do not provide an enterprises.
explicit definition of the term “supply chain project”. Both
Kilger (2015) and Wetterauer and Meyr (2015) focus on 4. SUCCESS FACTORS IN PROJECT MANAGEMENT
projects including the selection and implementation of
Advanced Planning Systems (APS). Wetterauer and Meyr In order to understand success factors for SCM projects, an
(2015) point out that “the successful implementation of the understanding of what is meant by the success of these
selected APS is the obvious goal of any organization that has projects is required. For decades project success has been
decided to go for a supply chain project.” (Wetterauer and defined by the triple-constraint of delivering the project on
Meyr 2015, p. 317) time, within budget, and with the desired quality or
performance (Verzuh 2016, Kerzner 2017). Since this
Wei et al. (2007) present a selection framework for SCM “internal definition of success” (Kerzner 2018, p. 28) has
projects. In their study they also refrain from defining the certain limitations, meeting the stakeholders’ expectations on
term “SCM project” explicitly, but focus on the the project’s value has been included in more recent
implementation of IT systems for SCM. They clarify that a definitions of project success (Verzuh 2016).
“successful SCM implementation project involves selecting a
suitable SCM system and cooperative SCM system vendor, Using this understanding, we define the success of an SCM
implementing the selected system, managing the supply chain project as the completion of the project on time, within
member relationships, and examining the practicality of the budget, and at the desired quality or performance, such that
system.” (Wei et al. 2007, p. 627)
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the project deliverables fulfil the stakeholders’ value Party Logistics Providers (3PLs) and one from a provider of
expectations. supply chain planning solutions. Two interviewees had more
than ten years of experience with SCM projects, six had
Project success factors are elements of a project which between five and ten years of experience and two had four
influence project success and which themselves can be years of experience at the time of the interview.
influenced by the project team (see e.g. Müller and Turner
2007, Dvir et al. 1998). These success factors for general Table 1. Overview of potential success factors
project management have been studied intensively over the
past decades. Success factors that keep coming up in the ID Success Factor
literature include (see e.g. Pinto and Selvin 1987, Dvir et al. 1 Appropriate communication and stakeholder
1998, Zwikael and Globerson 2006, Verzuh 2016, Kerzner management
2018): 2 Availability of sufficient resources
3 Clarity of project objectives
Clear project objectives
4 Experience of project manager with general
Constant and effective communication project management
Support from senior management 5 Experience of project manager with SCM projects
6 Experience of project team members with project
Setup and motivation of the project team work
Adequate resources 7 Organizational setup of project team: External
project team
There are further factors mentioned in some of the above
8 Organizational setup of project team: Internal
studies which can contribute to project success, e.g.
project team
controlled project scope, realistic project plans, and customer
9 Support of project sponsor and senior
involvement.
management
10 Utilization of a project management methodology
5. ANALYSIS OF SUCCESS FACTORS FOR SCM
PROJECTS
In their study Brinkhoff et al. (2015) specifically focus on During the interviews the participants were asked to rate the
success factors for supply chain projects. They distinguish importance of each of the proposed factors for project
between project-level and relationship-level factors, and success, using the ratings “high”, “medium” and “low”.
investigate the impact of three project-level success factors, Moreover, the participants were asked to add any other
namely communication, employee commitment and factors which they felt relevant for the success of their SCM
management commitment, and the relationship-level factors projects.
trust and asymmetric dependence. Our hypothesis is that apart
To derive a final score for each factor, we applied a 3-point
from the three project-level factors considered by Brinkhoff
Likert scale and assigned the value of 3 to ratings of “high”, 2
et al. (2015) there are further factors which have an impact on
to ratings of “medium”, and 1 to ratings of “low”. For each
SCM project success. In the following we will test this
factor we calculated the total score by aggregating the scores
hypothesis using the results from semi-structured interviews
of the individual ratings, such that a maximum total score of
with SCM professionals.
30 and a minimum of 10 could be reached. We split this
range evenly and considered factors with ratings between 30
5.1 Methodology of Research and 24 to be highly important for project success, ratings
between 23 and 17 to be of „medium“, and ratings below 17
We aim at detecting the most relevant project-level success to be of „low“ importance for SCM project success.
factors for SCM projects. Based on the literature on general
project management, the study by Brinkhoff et al. (2015) and 5.2 Results of Interviews
our own experience in managing SCM projects, we
developed a list of ten potential success factors for SCM
The first important finding is that the interviewees agree that
projects (Table 1).
“all of these aspects absolutely contribute to project success”
To explore the importance of these factors we conducted (Interviewee 1). However, the importance of these factors is
semi-structured interviews with SCM professionals. The seen differently (Table 2).
participants were selected based on their involvement in
It can be seen that the most relevant factors for the success of
SCM projects, with each participant having at least four years
SCM projects seem to be “Appropriate communication and
of experience in SCM. Email enquiries were sent to 40
stakeholder management” (Total score: 29) and “Clarity of
experts, inviting them to participate in an interview. Thirteen
project objectives” (Total score: 28), each being rated as
confirmations were received, of which ten interviews were
highly relevant by nine of the ten SCM professionals. Our
conducted between June 2018 and January 2019.
finding of a high importance of communication in SCM
Six interviewees belong to industrial enterprises and four to projects supports the results of Brinkhoff et al. (2015), who
service providers, of which three are from different Third emphasize that “frequent and open communication between
project partners is a major driver for supply chain project
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success.” (Brinkhoff et al. 2015, p. 196) In SCM projects it is Table 2. Importance of success factors, sorted by score
common that several business units or enterprises collaborate,
which creates a diverse portfolio of stakeholders. Therefore, Success Count of Ratings Total Score
Factor High Medium Low (Importance)
communication and effective stakeholder management seems
to be “definitely the base of the success of a project” Appropriate 9 1 0 29 (High)
(Interviewee 3) and “probably the most important skill for a communi-
project manager” (Interviewee 6). The diverse objectives of cation and
the supply chain partners involved in an SCM project usually stakeholder
lead to different expectations towards the outcomes of the mgmt.
project. In a freight tender, for example, the company issuing Clarity of 9 0 1 28 (High)
the tender will normally look for a reduction of freight costs project
whereas the incumbent logistics service providers will try to objectives
maintain their lanes without major reductions in the freight Support of 7 3 0 27 (High)
rates. Consequently, a clear understanding of and the project
agreement on the project objectives is crucial for project sponsor and
success, possibly even “the single most critical success senior mgmt.
factor” (Interviewee 6). Organiza- 6 4 0 26 (High)
tional setup:
The third factor considered highly relevant is “Support of Internal
project sponsor and senior management”, with seven ratings project team
of “high” and an overall score of 27. In SCM projects a Organiza- 5 3 2 23
strong project sponsor who supports the project team is tional setup: (Medium)
required to resolve potential conflicts between the diverse External
stakeholders. Without support from the sponsor and senior project team
management, “there are always delays” (Interviewee 3), Availability 4 5 1 23
rendering the on time completion of the project, one of the of sufficient (Medium)
components of project success, unlikely. resources
Utilization of 3 5 2 21
The last highly relevant factor appears to be the
a PM (Medium)
organizational setup of the internal project team, with six
methodology
„high“ and four „medium“ ratings, and a total score of 26. As
Experience of 3 4 3 20
Interviewee 3 points out, it is important “to have a team fully
project (Medium)
committed” to the project. Moreover, the team should consist
manager with
of different types of team members, “not only leaders”, as
SCM projects
emphasized by Interviewee 8.
Experience of 3 3 4 19
The factors with medium importance for the success of SCM project (Medium)
projects appear to be the organizational setup of the external manager with
project team, the availability of sufficient resources, the general PM
utilization of a specific project management methodology, Experience of 1 2 7 14 (Low)
and the experience of the project manager both with SCM project team
projects and with general project management. with project
work
The only factor which is judged to have a low impact on
project success is “Experience of project team with project
work”, with seven ratings of „low“ and a total score of 14. For the experts from industry “Appropriate communication
and stakeholder management” is the most important success
Additional success factors that were mentioned by the
factor, ranked “high” by all six interviewees. The second
interviewees include “Scope and time management”
place is taken by “Support of sponsor and senior
(mentioned three times), “Honesty and trust” (also mentioned
management” with a score of 17, followed by “Clarity of
three times), “Formalized change control” (mentioned once),
project objectives” with a score of 16. The least important
“Buffers and backup plans” (mentioned once), and
factor is “Experience of project team members with project
“Documentation and lessons learned” (also mentioned once).
work”, with four ratings of “low” and a total score of 9.
5.3 Comparison of Views: Industry vs. Service Providers For the service providers, the most important success factor
appears to be “Clarity of project objectives”, with four ratings
Further interesting insights result from the comparison of the of “high“, followed by “Appropriate communication and
evaluations between the SCM professionals from industry stakeholder management” and “Organizational setup: Internal
and those affiliated with service providers. project team”, both with scores of 11. Again the least
important factor is “Experience of project team members
with project work”, with three ratings of “low” and a total
score of 5.
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It is interesting to take a closer look at the differences which factors should be the main focus of project managers
between the most important success factors in both groups. responsible for SCM projects. As directions for future
Our interpretation is that for service providers, it can be even research we recommend to carry out a survey with a larger
more important to agree on clear project objectives with their sample size, and with the additional success factors
supply chain partners from industry, who are usually their mentioned by our interviewees added to the list. Moreover, it
customers. In our experience, unclear project objectives can would be interesting to cluster SCM projects into different
lead to misunderstandings, which in turn can result in categories, e.g. based on their decision areas within the
unsatisfied customers and substantial rework on the service supply chain, such as SC network optimization or the
provider’s side. Interviewee 8, a senior manager of a 3PL integration of a new SC partner, and investigate the main
with more than 20 years of experience in SCM projects, success factors for these different project types.
supports this interpretation by pointing out that for him
clarity on project objectives has the highest impact on the REFERENCES
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