Week 5 Assignment: Project Supply Chains For MAN45 ✓ Solved

Week 5 Assignment Topic: Project Supply Chains Course: MAN45

Week 5 Assignment Topic: Project Supply Chains Course: MAN4583 Project Management

Fun in the Sun Beach Wear (FSB) has created a charter to open a new location. The charter project is designed to improve the retail business by expanding to a new location to increase revenue through merchandise sales and improve the brand image. The project will be supported using existing and new supply chain partners. The project will be accomplished using the planning, conducting, controlling, and closing procurement processes. FSB will document procurement decisions, identify potential sellers, obtain responses, select vendors, and award contracts. The conduct procurement process can be lengthy; FSB must ensure vendors meet organizational goals prior to awarding contracts. Relationships created in procurement are valuable and must be documented, managed, and updated during control procurements. Control procurements involves managing procurement relationships, monitoring contract performance, making changes and corrections, and closing out contracts. The project manager is responsible for ensuring data gathering, analysis, source selection, and that procurements meet scope and stakeholder requirements. Through procurement FSB aims to capture a larger market, improve brand image, and provide quality products in the new location.

Write a 1000-word paper analyzing the project supply chains and procurement processes for FSB in the context of the provided project charter. Address procurement planning, seller selection and source selection analysis, contract management and control procurements, risk management for supply chains, documentation and relationship management, and expected benefits. Include in-text citations and provide 10 credible references.

Paper For Above Instructions

Introduction

Fun in the Sun Beach Wear (FSB) intends to open a new retail location to expand market reach, increase revenue, and enhance brand image. Realizing these goals depends heavily on robust project supply chain and procurement practices. This paper analyzes procurement planning, source selection, contract management and control procurements, supply-chain risk management, documentation and relationship management, and the expected benefits for FSB based on the provided charter and project objectives (PMI, 2017).

Procurement Planning

Procurement planning should begin by translating project requirements—inventory types, quantities, delivery schedules, quality standards, and budget—into a procurement management plan. This plan should define procurement strategy (make vs. buy), contract types (fixed-price, cost-reimbursable, time-and-materials), procurement milestones aligned with the project schedule, and clear success criteria tied to the project’s objectives (Larson, 2017). Given the retail context and inventory-heavy budget line items, FSB should favor fixed-price contracts for initial inventory lots to control costs, paired with service-level agreements (SLAs) for replenishment and lead-time guarantees to ensure store opening readiness (Monczka et al., 2015).

Seller Selection and Source Selection Analysis

Effective seller selection starts with a well-constructed solicitation package that includes specifications, evaluation criteria, and scoring rubrics. FSB should issue requests for proposals (RFPs) to prequalified vendors and use a weighted scoring model to evaluate proposals across dimensions such as price, quality, lead-time, financial stability, capacity, sustainability practices, and cultural fit (Kraljic, 1983). A two-stage evaluation—technical evaluation followed by commercial evaluation—reduces selection risk. For key or strategic items, FSB may use supplier demonstrations, reference checks, and site visits. A formal source selection analysis document must record evaluation rationale and approvals to support transparency and future audits (Brown, n.d.).

Contract Management and Control Procurements

After vendor award, active contract management becomes critical. Control procurements include monitoring vendor performance against contract terms, managing changes through formal change-control processes, enforcing SLAs, and maintaining procurement records (PMI, 2017). FSB should implement performance metrics (on-time delivery, defect rate, fill rate, responsiveness) and schedule periodic reviews. A contract governance plan should identify roles (project manager, procurement lead, legal counsel), escalation paths, and remedies for nonperformance. For example, penalties for late delivery and incentives for early fulfillment can align vendor behavior with FSB’s go-live date for the new store (Handfield & Nichols, 2002).

Risk Management for Supply Chains

Supply chain risks—sourcing disruptions, quality failures, transportation delays, supplier insolvency—must be identified, assessed, and mitigated. FSB should perform a supplier risk assessment using likelihood-impact matrices and categorize suppliers (strategic, bottleneck, leverage, routine) to tailor mitigation (Kraljic, 1983). Mitigations include dual-sourcing critical SKUs, maintaining safety stock for launch inventory, contractual contingencies, and requiring suppliers to maintain business continuity plans. Given global supply-chain volatility observed in recent years, contingency planning and scenario exercises are prudent (Sheffi, 2020).

Documentation and Relationship Management

Procurement documentation—RFPs, proposals, evaluation matrices, contracts, change orders, performance reports—should be stored in a centralized repository with version control and access permissions. Proper documentation supports accountability, auditability, and knowledge transfer (PMI, 2017). Relationship management emphasizes collaborative supplier partnerships: regular cadence meetings, transparent forecasting, joint improvement plans, and shared KPIs to drive continuous improvement and brand alignment. For FSB, supplier relationships are strategic assets that help ensure consistent quality and protect the brand (Christopher, 2016).

Integration with Project Management and Stakeholders

The procurement plan must align with the overall project schedule, budget, and milestones (site selection, lease signing, renovation, inventory placement, hiring, grand opening). The project manager should coordinate cross-functional inputs (finance, operations, merchandizing, legal) during procurement decisions, and secure approvals defined in the project charter. Stakeholder communications—particularly with the owner and board—should include procurement status, key risks, and major supplier commitments to maintain stakeholder confidence (Kerzner, 2017).

Expected Benefits and Performance Measurement

When executed well, procurement activities will support the charter objectives: increasing sales through timely stocking, improving brand image through consistent product quality, and delivering expected ROI. Performance should be measured against KPIs tied to project success criteria (sales uplift, time-to-open, inventory turnover, customer satisfaction). Post-implementation reviews and supplier scorecards enable lessons learned to be captured and applied to future expansions (Monczka et al., 2015).

Conclusion

FSB’s success in opening a new location relies on disciplined procurement and supply-chain management: rigorous procurement planning, objective source selection, proactive contract controls, comprehensive risk mitigation, and strong supplier relationships. Embedding these practices in the project’s governance and documentation ensures accountability and positions FSB to realize the charter’s goals of revenue growth and brand enhancement (PMI, 2017; Sheffi, 2020).

References

• Brown, G. (n.d.). Procurement and the project manager. PM Times. Retrieved from https://www.projecttimes.com
• Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson.
• Handfield, R. B., & Nichols, E. L. (2002). Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems. FT Press.
• Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61(5), 109–117.
• Larson, E. W. (2017). Project Management: The Managerial Process. McGraw-Hill Education.
• Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition. Project Management Institute.
• Sheffi, Y. (2020, March 19). How to Make Your Supply Chain Resilient. The Wall Street Journal. Retrieved from https://www.wsj.com
• Cousins, P. D., Lawson, B., & Squire, B. (2006). Supply chain management: theory and practice – the emergence of the integration perspective. International Journal of Operations & Production Management, 26(6), 589–610.