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Success Factors for Supply Chain Management Projects: An Empirical Analysis
9th IFAC Conference on Manufacturing Modelling, Management and 9th IFAC Conference on Manufacturing Modelling, Management and Control Available online at www.sciencedirect.com Control 9th IFAC IFAC Conference Conference on on Manufacturing Modelling, Management and 9th Modelling, Management and Berlin, Germany, AugustManufacturing 28-30, 2019 Berlin, Germany, August 28-30, 2019 Control Control Berlin, Berlin, Germany, Germany, August August 28-30, 28-30, 2019 2019
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Success Success Factors Factors for for Supply Supply Chain Chain Management Management Projects: Projects: Success Factors for Supply Chain Management Projects: An Empirical Analysis Success Factors for Chain Management Projects: AnSupply Empirical Analysis An An Empirical Empirical Analysis Analysis Christoph Manuel Meyer*. Edna Liliana Garcia Torres**
Christoph Manuel Meyer*. Edna Liliana Garcia Torres** Christoph Edna Liliana Liliana Garcia Garcia Torres** Torres** Christoph Manuel Manuel Meyer*. Meyer*. Edna *Berlin *Berlin School School of of Economics Economics and and Law Law (HWR (HWR Berlin), Berlin), Berlin, Berlin, Germany Germany (Tel: 030-30877-1547; e-mail: [email protected]). *Berlin School of Economics and Law (HWR Berlin), Berlin, Germany (Tel: 030-30877-1547; e-mail: [email protected]). *Berlin School and **Berlin Schoolof ofEconomics Economics andLaw Law(HWR (HWRBerlin), Berlin),Berlin, Berlin,Germany Germany (Tel: 030-30877-1547; e-mail: [email protected]). **Berlin School of Economics and Law (HWR Berlin), Berlin, Germany (Tel: 030-30877-1547; e-mail: [email protected]). **Berlin **Berlin School School of of Economics Economics and and Law Law (HWR (HWR Berlin), Berlin), Berlin, Berlin, Germany Germany Abstract: This paper provides new insights on the major success factors for supply Abstract: This paper provides new insights on the major success factors for supply chain chain management management (SCM) projects. The contributions of this study are twofold: Firstly, we propose a comprehensive Abstract: This paper provides new insights on the major success factors for supply chain (SCM) projects. The contributions of this study are twofold: Firstly, we propose a comprehensive Abstract: This paper provideschain new management insights on the major success factors for supply chain management management definition of the term “supply project”, which Firstly, encompasses the different different views found found (SCM) projects. The contributions of this study are twofold: we propose aa comprehensive definition of the term “supply chain management project”, which encompasses the views (SCM) projects. The contributions of this study are twofold: Firstly, we propose comprehensive in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using definition of the the term term “supply chain management project”, which encompasses the different views found found in the literature. Secondly, wechain evaluate the importance ofwhich ten success factors the fordifferent SCM projects using definition of “supply management project”, encompasses views semi-structured interviews with SCM professionals. Communication and stakeholder management, clear in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using semi-structured interviews with SCM professionals. Communication and stakeholder management, clear in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using project objectives, objectives, support with by project project sponsor and senior management, and the internal organization of semi-structured interviews SCM professionals. Communication and stakeholder management, project support by sponsor and senior management, and the internal organization of semi-structured interviews with SCM professionals. Communication and stakeholder management, clear clear the project team appear to be the most relevant success factors. This provides a clear recommendation for project objectives, support by project sponsor and senior management, and the internal organization of the project team appear to be the most relevant success factors. This provides a clear recommendation for project objectives, support byinproject sponsor and senior management, and the internal organization of managers of SCM projects practice on which which factors to focus. Additionally, we find that the the project team appear to be the most relevant success factors. This provides a clear recommendation for managers of SCM projects in practice on factors to focus. Additionally, we find that the the project team appear to be the most relevant success factors. This provides a clear recommendation for importanceofgiven given toprojects the success success factors on partially depends on focus. the organizational organizational affiliations of the the managers SCM in which factors to Additionally, we that importance to the factors partially depends on the affiliations of managers of with SCMcertain projects in practice practice on which factors to focus. Additionally, we find find that interviewees, differences between industrial enterprises and service providers. Copyright © importance given to success partially depends on organizational affiliations of interviewees, with certain between industrial enterprises service providers. Copyright © importance given to the the differences success factors factors partially depends on the theand organizational affiliations of the the 2019 IFAC interviewees, with certain differences between industrial enterprises and service providers. Copyright 2019 IFAC © 2019, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved. interviewees, with certain differences between industrial enterprises and service providers. Copyright © © 2019 IFAC Project Management, Supply Chain Management, SCM Project, Success Factors 2019 IFAC Keywords: Keywords: Project Management, Supply Chain Management, SCM Project, Success Factors Keywords: SCM Keywords: Project Project Management, Management, Supply Supply Chain Chain Management, Management, SCM Project, Project, Success Success Factors Factors value of the solution or the adherence to project project schedule schedule and and value of the solution or the adherence to 1. 1. INTRODUCTION INTRODUCTION budget. Therefore we consider it worthwhile to investigate value of the solution the to and budget. weor it worthwhile toschedule investigate value of Therefore thewhich solution or consider the adherence adherence to project project schedule and 1. the factors contribute to the theit success success of SCM SCM projects. 1. INTRODUCTION INTRODUCTION Today most most companies companies acknowledge the the concept concept of of supply supply the budget. Therefore we consider worthwhile to investigate factors which contribute to of projects. Today acknowledge budget. Therefore we consider it worthwhile to investigate chain management (SCM) and leverage leverage it as aa means means for the factors contribute to of projects. Today most companies acknowledge the concept of chain management (SCM) and it as for the factors which which contribute to the the success successsuccess of SCM SCMfactors projects.for Numerous studies have investigated Today most companies acknowledge the concept of supply supply gaining competitive advantage. SCM can be understood as Numerous studies have investigated success factors for chain management (SCM) and leverage it as a means for gaining competitive advantage. SCM can be understood as project management in general. It has become clear that that chain management (SCM) and leverage it as a means for Numerous studies have investigated success factors for project management in general. It hassuccess becomefactors clear the “cross-department and cross-enterprise cross-enterprise integration and Numerous studies have investigated for gaining competitive advantage. SCM can be understood as the “cross-department and integration and differentmanagement types of projects projects requireIt different different approaches to gaining competitive advantage. SCM can be understood as project in general. has become clear that different types of require approaches to coordination of material, information and financial flows to project management in general. It has become clear that the “cross-department and cross-enterprise integration coordination of material, information and financial flowsand to project management (Müller and Turner 2007) and that the “cross-department and cross-enterprise integration and different types of projects require different approaches to project management (Müller and Turner 2007) and that transform andofuse use the SC SC information resources in in and the most most rational way different types can of vary projects require different approaches to coordination material, financial flows to transform and the resources the rational way success factors for different different project types types (Dvir etthat al. coordination of material, information and financial flows to project management (Müller and Turner 2007) and success factors can vary for project (Dvir et al. along the entire value chain, from raw material suppliers to project management (Müller and Turner 2007) and that transform and use the SC resources in most way along the entire chain, from raw material suppliers to 1998). So far only little research has been conducted on the transform and usevalue the resources in the the most rational rational way successSo factors can vary different types (Dvironet al. 1998). far only little for research hasproject been conducted customers.” (Ivanov et SC al. 2017, p. 5) 5)raw factors can vary for different project types et the al. along the the entire entire value chain, from material suppliers suppliers to to success customers.” (Ivanov et al. 2017, p. success factors for SCM SCM projects. This paper aims(Dvir at closing closing along value chain, from raw material 1998). So far only little research has been conducted on the success factors for projects. This paper aims at 1998). So far only little research has been conducted on the customers.” (Ivanov et al. 2017, p. 5) this research gap by providing insights to the theaims factors which customers.” et al. 2017, p. 5) In practice, practice, (Ivanov SCM comprises comprises both ongoing activities activities such such as as this success factors for SCM projects. This paper at research gap providing insights to factors which In SCM both ongoing success factors forby SCM projects. This paper aims at closing closing project managers need to address to turn their SCM project inventory control and production scheduling, and tasks with this research gap by providing insights the which project managers need to address to turnto SCM project In practice, SCM comprises both ongoing activities such as inventory control production scheduling, and tasks with gap by providing insights to their the factors factors which In practice, SCM and comprises both as ongoing activities such as this into aaresearch success story. project characteristics, such distribution network project managers need to address to turn their SCM project into success story. inventory control and production scheduling, and tasks with project characteristics, such as distribution network project managers need to address to turn their SCM project inventory control and production scheduling, and tasks with optimization or tendering tendering of ofsuch freightasservices services (Fig. (Fig. 1). into success story. project optimization or freight into success story. The aapaper paper is structured structured as follows: follows: In In section section 22 we we provide provide an an project characteristics, characteristics, such as distribution distribution1). network network The is as optimization or tendering of freight services (Fig. 1). overview of related studies on SCM SCMInprojects. projects. Inwe section 3 we we optimization or tendering of freight services (Fig. 1). The paper is structured as follows: section 2 provide an overview of related studies on In section 3 The paper on is structured as follows:ofInthe section we provide an elaborate our understanding understanding term 2“SCM “SCM project” overview of related studies on SCM projects. In section 3 we elaborate on our of the term project” overview of related studies on SCM projects. In section 3 we and propose comprehensive definition of“SCM this term. term. In elaborate on our understanding of the term project” and propose aa comprehensive definition of this In elaborate on our understanding of the term “SCM project” section 4 we analyse the meaning of project success and and propose comprehensive definition of this term. In section 4 we aaanalyse the meaning of project success and propose comprehensive definition of this term.and In discuss the main successthe factors which have been detected for section 4 we analyse meaning of project success and discuss the main success factors which have been detected for section 4 we analyse the meaning of project success and general project management. Inwhich section we detected present our our discuss the the main management. success factors factorsIn have55 been been for general project section we present discuss main success which have detected for empirical study on the main success factors for SCM general project management. In section 5 we present our empirical study management. on the mainIn success factors for SCM general project section 5 we present our projects. The The results are based on the findings findings from semiempirical study on the main success factors for SCM projects. results based on the semiempirical study on are thewith main success factors from forFinally, SCM structured interviews SCM professionals. projects. The results are based on the findings from semistructured interviews with SCM professionals. Finally, projects. The results are based on the findings from semisection provides conclusion and professionals. discusses implications implications structured interviews with Finally, section 66 provides aa conclusion and discusses structured interviews with SCM SCM professionals. Finally, for practitioners and academics. section 6 provides a conclusion and discusses implications for practitioners and academics. section 6 provides a conclusion and discusses implications for for practitioners practitioners and and2.academics. academics. RELATED WORKS WORKS 2. RELATED Fig. 1. Classification of SCM activities Fig. 1. Classification of SCM activities 2. 2. RELATED RELATED WORKS Despite the the vast vast body body of literature literatureWORKS on SCM SCM (e.g. (e.g. Chopra Chopra and and Fig. Despite of on Fig. 1. 1. Classification Classification of of SCM SCM activities activities Meindl 2016, Simchi-Levi et al. 2008) only little research is Experience has shown that many SCM projects fail to deliver Despite 2016, the vast vast body of of literature literature on SCM SCM (e.g. Chopra and Simchi-Levi et al. 2008) only (e.g. littleChopra researchand is Experience has shown that many SCM projects fail to deliver Meindl Despite the body on available on SCM projects. There is not even consensus on the promised results, e.g. regarding the customer’s expected Meindl 2016, 2016, Simchi-Levi etThere al. 2008) 2008) only little researchon is on SCM projects.et is not even consensus Experience has shown that many fail deliver the promised theprojects customer’s Meindl Simchi-Levi al. only little research is Experience hasresults, showne.g. thatregarding many SCM SCM projects fail to toexpected deliver available the promised promised results, results, e.g. e.g. regarding regarding the the customer’s customer’s expected expected available available on on SCM SCM projects. projects. There There is is not not even even consensus consensus on on the
2405-8963 © 2019, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved. Copyright 2019 IFAC 158 Peer review© of International Federation of Automatic Copyright ©under 2019 responsibility IFAC 158Control. 10.1016/j.ifacol.2019.11.168 Copyright © 2019 IFAC 158 Copyright © 2019 IFAC 158
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the terminology, with some authors using the term “supply chain project” and others referring to “supply chain management projects”. In addition, in most cases an explicit definition of the terms is missing. The authors show substantial differences in their understanding of these projects, with most authors focusing on a narrow field of what we consider as SCM projects.
Ross (1998) acknowledges the presence of projects in the field of SCM and elaborates on supply chain quality management (SCQM) projects, which “define several key high-impact actions that will provide the channel with the desired result.” (Ross 1998, p. 280) 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 define supply chain projects “as dyadic activities between existing alliance partners that have already established a relationship.” (Brinkhoff et al. 2015, p. 181) In the sequel they mention that supply chain projects can also include more than two enterprises.
The overview of related works in section 2 shows that a universal understanding of the terms “supply chain project” and “SCM project” seems to be lacking. The definition proposed by Brinkhoff et al. (2015) excludes SCM activities within one single enterprise, which are explicitly mentioned as SCM tasks both in the definition provided by Ivanov et al. (2017) and in the SCM tasks proposed by Ayers (2006). In our view SCM projects need not be started by the company headquarters, but can also be initiated by regional divisions and even by single sites, for example if we consider a regional warehousing tender. Therefore, in the following we develop a more comprehensive definition of the term.
Ayers (2006) suggests five major management tasks for SCM, namely designing supply chains for strategic advantage, implementing collaborative relationships within the enterprise, forging supply chain partnerships with outside companies, managing supply chain information, and removing cost from the supply chain. Ayers (2010) proposes project templates for accomplishing these tasks in the form of projects, but he does not provide an explicit definition of the term “supply chain project”.
A project can be defined as a temporary initiative with a defined start and end point, which produces a unique result (see e.g. Verzuh 2016, Project Management Institute 2017).
Kim and Nguyen (2018) focus on construction supply chains and analyse the impact of the relationship between the partners on project performance. They conclude that collaboration in the supply chain, support and commitment to the supply chain, and sharing of benefits and risks have a positive impact on the construction project’s performance.
Based on the definition of SCM proposed by Ivanov et al. (2017) and the five management tasks for SCM suggested by Ayers (2006), we propose the following definition: A supply chain management project is an activity with a unique deliverable and a defined start and end point, which focuses on the intra-company and inter-company integration and coordination of material, information and financial flows, or on removing cost from the supply chain.
Kilger (2015) suggests an approach for the definition of a supply chain project, which comprises three phases. Kilger (2015) does not provide an explicit definition of the terms “supply chain project” and “SCM project”, but he points out that the “goal of SCM projects is to improve competitiveness of the supply chain” (Kilger 2015, p. 281), and that SCM projects are started by the company headquarter.
This broad understanding of SCM projects comprises SCM activities between two partners in an existing alliance as investigated by Brinkhoff et al. (2015), and also allows for the consideration of projects in which new alliances are forged. Also the selection and implementation of APS in supply chains can be subsumed here, and many other initiatives within supply chains which can be pursued by one single supply chain partner or by collaborations of different enterprises.
Wetterauer and Meyr (2015) focus on the implementation of supply chain projects and outline five major implementation phases. Also Wetterauer and Meyr (2015) do not provide an explicit definition of the term “supply chain project”. Both Kilger (2015) and Wetterauer and Meyr (2015) focus on projects including the selection and implementation of Advanced Planning Systems (APS). Wetterauer and Meyr (2015) point out that “the successful implementation of the selected APS is the obvious goal of any organization that has decided to go for a supply chain project.” (Wetterauer and Meyr 2015, p. 317)
4. SUCCESS FACTORS IN PROJECT MANAGEMENT In order to understand success factors for SCM projects, an understanding of what is meant by the success of these projects is required. For decades project success has been defined by the triple-constraint of delivering the project on time, within budget, and with the desired quality or performance (Verzuh 2016, Kerzner 2017). Since this “internal definition of success” (Kerzner 2018, p. 28) has certain limitations, meeting the stakeholders’ expectations on the project’s value has been included in more recent definitions of project success (Verzuh 2016).
Wei et al. (2007) present a selection framework for SCM projects. In their study they also refrain from defining the term “SCM project” explicitly, but focus on the implementation of IT systems for SCM. They clarify that a “successful SCM implementation project involves selecting a suitable SCM system and cooperative SCM system vendor, implementing the selected system, managing the supply chain member relationships, and examining the practicality of the system.” (Wei et al. 2007, p. 627)
Using this understanding, we define the success of an SCM project as the completion of the project on time, within budget, and at the desired quality or performance, such that
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the project deliverables fulfil the stakeholders’ value expectations.
Party Logistics Providers (3PLs) and one from a provider of supply chain planning solutions. Two interviewees had more than ten years of experience with SCM projects, six had between five and ten years of experience and two had four years of experience at the time of the interview.
Project success factors are elements of a project which influence project success and which themselves can be influenced by the project team (see e.g. Müller and Turner 2007, Dvir et al. 1998). These success factors for general project management have been studied intensively over the past decades. Success factors that keep coming up in the literature include (see e.g. Pinto and Selvin 1987, Dvir et al. 1998, Zwikael and Globerson 2006, Verzuh 2016, Kerzner 2018):
Clear project objectives
Constant and effective communication
Support from senior management
Setup and motivation of the project team
Adequate resources
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Table 1. Overview of potential success factors ID 1 2 3 4 5 6 7
There are further factors mentioned in some of the above studies which can contribute to project success, e.g. controlled project scope, realistic project plans, and customer involvement.
8 9 10
5. ANALYSIS OF SUCCESS FACTORS FOR SCM PROJECTS
Success Factor Appropriate communication and stakeholder management Availability of sufficient resources Clarity of project objectives Experience of project manager with general project management Experience of project manager with SCM projects Experience of project team members with project work Organizational setup of project team: External project team Organizational setup of project team: Internal project team Support of project sponsor and senior management Utilization of a project management methodology
During the interviews the participants were asked to rate the importance of each of the proposed factors for project success, using the ratings “high”, “medium” and “low”. Moreover, the participants were asked to add any other factors which they felt relevant for the success of their SCM projects.
In their study Brinkhoff et al. (2015) specifically focus on success factors for supply chain projects. They distinguish between project-level and relationship-level factors, and investigate the impact of three project-level success factors, namely communication, employee commitment and management commitment, and the relationship-level factors trust and asymmetric dependence. Our hypothesis is that apart from the three project-level factors considered by Brinkhoff et al. (2015) there are further factors which have an impact on SCM project success. In the following we will test this hypothesis using the results from semi-structured interviews with SCM professionals.
To derive a final score for each factor, we applied a 3-point Likert scale and assigned the value of 3 to ratings of “high”, 2 to ratings of “medium”, and 1 to ratings of “low”. For each factor we calculated the total score by aggregating the scores of the individual ratings, such that a maximum total score of 30 and a minimum of 10 could be reached. We split this range evenly and considered factors with ratings between 30 and 24 to be highly important for project success, ratings between 23 and 17 to be of „medium“, and ratings below 17 to be of „low“ importance for SCM project success.
5.1 Methodology of Research We aim at detecting the most relevant project-level success factors for SCM projects. Based on the literature on general project management, the study by Brinkhoff et al. (2015) and our own experience in managing SCM projects, we developed a list of ten potential success factors for SCM projects (Table 1).
5.2 Results of Interviews The first important finding is that the interviewees agree that “all of these aspects absolutely contribute to project success” (Interviewee 1). However, the importance of these factors is seen differently (Table 2).
To explore the importance of these factors we conducted semi-structured interviews with SCM professionals. The participants were selected based on their involvement in SCM projects, with each participant having at least four years of experience in SCM. Email enquiries were sent to 40 experts, inviting them to participate in an interview. Thirteen confirmations were received, of which ten interviews were conducted between June 2018 and January 2019.
It can be seen that the most relevant factors for the success of SCM projects seem to be “Appropriate communication and stakeholder management” (Total score: 29) and “Clarity of project objectives” (Total score: 28), each being rated as highly relevant by nine of the ten SCM professionals. Our finding of a high importance of communication in SCM projects supports the results of Brinkhoff et al. (2015), who emphasize that “frequent and open communication between project partners is a major driver for supply chain project
Six interviewees belong to industrial enterprises and four to service providers, of which three are from different Third 160
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success.” (Brinkhoff et al. 2015, p. 196) In SCM projects it is common that several business units or enterprises collaborate, which creates a diverse portfolio of stakeholders. Therefore, communication and effective stakeholder management seems to be “definitely the base of the success of a project” (Interviewee 3) and “probably the most important skill for a project manager” (Interviewee 6). The diverse objectives of the supply chain partners involved in an SCM project usually lead to different expectations towards the outcomes of the project. In a freight tender, for example, the company issuing the tender will normally look for a reduction of freight costs whereas the incumbent logistics service providers will try to maintain their lanes without major reductions in the freight rates. Consequently, a clear understanding of and the agreement on the project objectives is crucial for project success, possibly even “the single most critical success factor” (Interviewee 6).
Table 2. Importance of success factors, sorted by score Success Factor Appropriate communication and stakeholder mgmt. Clarity of project objectives Support of project sponsor and senior mgmt. Organizational setup: Internal project team Organizational setup: External project team Availability of sufficient resources Utilization of a PM methodology Experience of project manager with SCM projects Experience of project manager with general PM Experience of project team with project work
The third factor considered highly relevant is “Support of project sponsor and senior management”, with seven ratings of “high” and an overall score of 27. In SCM projects a strong project sponsor who supports the project team is required to resolve potential conflicts between the diverse stakeholders. Without support from the sponsor and senior management, “there are always delays” (Interviewee 3), rendering the on time completion of the project, one of the components of project success, unlikely. The last highly relevant factor appears to be the organizational setup of the internal project team, with six „high“ and four „medium“ ratings, and a total score of 26. As Interviewee 3 points out, it is important “to have a team fully committed” to the project. Moreover, the team should consist of different types of team members, “not only leaders”, as emphasized by Interviewee 8. The factors with medium importance for the success of SCM projects appear to be the organizational setup of the external project team, the availability of sufficient resources, the utilization of a specific project management methodology, and the experience of the project manager both with SCM projects and with general project management. 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.
Count of Ratings High Medium Low 9 1 0
Total Score (Importance) 29 (High)
9
0
1
28 (High)
7
3
0
27 (High)
6
4
0
26 (High)
5
3
2
23 (Medium)
4
5
1
23 (Medium)
3
5
2
21 (Medium)
3
4
3
20 (Medium)
3
3
4
19 (Medium)
1
2
7
14 (Low)
For the experts from industry “Appropriate communication and stakeholder management” is the most important success factor, ranked “high” by all six interviewees. The second place is taken by “Support of sponsor and senior management” with a score of 17, followed by “Clarity of project objectives” with a score of 16. The least important factor is “Experience of project team members with project work”, with four ratings of “low” and a total score of 9.
Additional success factors that were mentioned by the interviewees include “Scope and time management” (mentioned three times), “Honesty and trust” (also mentioned three times), “Formalized change control” (mentioned once), “Buffers and backup plans” (mentioned once), and “Documentation and lessons learned” (also mentioned once).
For the service providers, the most important success factor appears to be “Clarity of project objectives”, with four ratings of “high“, followed by “Appropriate communication and stakeholder management” and “Organizational setup: Internal 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.
5.3 Comparison of Views: Industry vs. Service Providers Further interesting insights result from the comparison of the evaluations between the SCM professionals from industry and those affiliated with service providers.
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It is interesting to take a closer look at the differences between the most important success factors in both groups. Our interpretation is that for service providers, it can be even more important to agree on clear project objectives with their supply chain partners from industry, who are usually their customers. In our experience, unclear project objectives can lead to misunderstandings, which in turn can result in unsatisfied customers and substantial rework on the service provider’s side. Interviewee 8, a senior manager of a 3PL with more than 20 years of experience in SCM projects, supports this interpretation by pointing out that for him clarity on project objectives has the highest impact on the success of SCM projects.
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which factors should be the main focus of project managers responsible for SCM projects. As directions for future research we recommend to carry out a survey with a larger sample size, and with the additional success factors mentioned by our interviewees added to the list. Moreover, it would be interesting to cluster SCM projects into different categories, e.g. based on their decision areas within the supply chain, such as SC network optimization or the integration of a new SC partner, and investigate the main success factors for these different project types. REFERENCES Ayers, J.B. (2006). Handbook of Supply Chain Management. 2nd edition, Auerbach Publications, Boca Raton. Ayers, J.B. (2010). Supply chain project management. A structured collaborative and measurable approach. 2nd edition, CRC Press, Boca Raton. Brinkhoff, A., Özer, Ö., and Sargut, G. (2015). All You Need Is Trust? An Examination of Inter-organizational Supply Chain Projects. Production and Operations Management, 24 (2), 181-200. Chopra, S. and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. 6th edition, Harlow. Dvir, D., Lipovetsky, S., Shenhar, A., and Tishler, A. (1998). In search of project classification: a non-universal approach to project success factors. Research Policy, 27, 915-935. Ivanov, D., Tsipoulanidis, A., and Schönberger, J. (2017). Global Supply Chain and Operations Management. A Decision-Oriented Introduction to the Creation of Value. Springer, Cham. Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 12th edition, John Wiley & Sons, Hoboken, New Jersey. Kerzner, H. (2018). Project Management Best Practices Achieving Global Excellence. 4th edition, John Wiley & Sons, Hoboken, New Jersey. Kilger, C. (2015). The Definition of a Supply Chain Project. In Stadtler, H., Kilger, C., and Meyr, H. (eds.), Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies, 281-300. 5th edition, Springer, Berlin, Heidelberg. Kim, S.-Y. and Nguyen, V.T. (2018). A Structural model for the impact of supply chain relationship traits on project performance in construction. Production Planning & Control, 29 (2), 170-183. Müller, R. and Turner, R. (2007). Success Criteria and Project Success by Type of Project. European Management Journal, 25 (4), 298-309. Pinto, J.K. and Selvin, D.P. (1987). Critical factors in successful project implementation. IEEE Transactions on Engineering Management, 34 (1), 22-27. Project Management Institute (2017). A Guide to the Project Management Body of Knowledge. 6th edition, Project Management Institute, Newton Square, Pennsylvania. Ross, D.F. (1998). Competing Through Supply Chain Management: Creating Market-Winning Strategies Through Supply Chain Partnerships. Springer, New York.
6. CONCLUSIONS In this paper we proposed a definition of the term “supply chain management project”, which is more comprehensive than other definitions found in the literature. Moreover, we tested the importance of ten factors for the success of SCM projects. We found that all ten proposed factors have certain relevance for the success of SCM projects, with communication and stakeholder management, clear project objectives, support by project sponsor and senior management, and the internal organization of the project team being the most relevant success factors. These results have implications both for practitioners and for academics pursuing research in this field. 6.1 Implications for Practitioners From the analysis we learned which factors are most relevant for the success of SCM projects in practice. Therefore managers of SCM projects should focus their efforts on influencing these success factors in a favourable way. We also learned that project manager’s experience with SCM projects and with general project management have a medium impact on SCM project success and appear at the bottom of the list. This finding implies that also junior managers of SCM projects can compensate their lack of experience and deliver successful SCM projects by focusing on the four highly relevant success factors. 6.2 Implications for Academics Our finding that the most important success factors for SCM projects include communication and stakeholder management, support from sponsor and senior management and organizational setup and commitment of the project team are in line with the findings by Brinkhoff et al. (2015). However, Brinkhoff et al. (2015) do not consider clarity of the project objectives in their study, which turned out to be the second most important success factor for SCM projects in our analysis. This shows that our hypothesis was right and implies that further success factors deserve consideration in future research projects in this field. We are aware that with ten interviewees our sample size is limited. Therefore our results can only be a first indication 162
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Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies. 3rd edition, McGraw-Hill, New York. Verzuh, E. (2016). The Fast Forward MBA in Project Management. 5th edition, John Wiley & Sons, Hoboken, New Jersey. Wei, C.-C., Liang, G.-S., and Wang, M.-J. J. (2007). A comprehensive supply chain management project selection framework under fuzzy environment. International Journal of Project Management, 25 (6), 627-636. Wetterauer, U. and Meyr, H. (2015). The Implementation Process. In Stadtler, H., Kilger, C., and Meyr, H. (eds.), Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies, 317-337. 5th edition, Springer, Berlin, Heidelberg. Zwikael, O. and Globerson, S. (2006). From Critical Success Factors to Critical Success Processes. International Journal of Production Research, 44 (17), 3433–3449.
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Success Success Factors Factors for for Supply Supply Chain Chain Management Management Projects: Projects: Success Factors for Supply Chain Management Projects: An Empirical Analysis Success Factors for Chain Management Projects: AnSupply Empirical Analysis An An Empirical Empirical Analysis Analysis Christoph Manuel Meyer*. Edna Liliana Garcia Torres**
Christoph Manuel Meyer*. Edna Liliana Garcia Torres** Christoph Edna Liliana Liliana Garcia Garcia Torres** Torres** Christoph Manuel Manuel Meyer*. Meyer*. Edna *Berlin *Berlin School School of of Economics Economics and and Law Law (HWR (HWR Berlin), Berlin), Berlin, Berlin, Germany Germany (Tel: 030-30877-1547; e-mail: [email protected]). *Berlin School of Economics and Law (HWR Berlin), Berlin, Germany (Tel: 030-30877-1547; e-mail: [email protected]). *Berlin School and **Berlin Schoolof ofEconomics Economics andLaw Law(HWR (HWRBerlin), Berlin),Berlin, Berlin,Germany Germany (Tel: 030-30877-1547; e-mail: [email protected]). **Berlin School of Economics and Law (HWR Berlin), Berlin, Germany (Tel: 030-30877-1547; e-mail: [email protected]). **Berlin **Berlin School School of of Economics Economics and and Law Law (HWR (HWR Berlin), Berlin), Berlin, Berlin, Germany Germany Abstract: This paper provides new insights on the major success factors for supply Abstract: This paper provides new insights on the major success factors for supply chain chain management management (SCM) projects. The contributions of this study are twofold: Firstly, we propose a comprehensive Abstract: This paper provides new insights on the major success factors for supply chain (SCM) projects. The contributions of this study are twofold: Firstly, we propose a comprehensive Abstract: This paper provideschain new management insights on the major success factors for supply chain management management definition of the term “supply project”, which Firstly, encompasses the different different views found found (SCM) projects. The contributions of this study are twofold: we propose aa comprehensive definition of the term “supply chain management project”, which encompasses the views (SCM) projects. The contributions of this study are twofold: Firstly, we propose comprehensive in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using definition of the the term term “supply chain management project”, which encompasses the different views found found in the literature. Secondly, wechain evaluate the importance ofwhich ten success factors the fordifferent SCM projects using definition of “supply management project”, encompasses views semi-structured interviews with SCM professionals. Communication and stakeholder management, clear in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using semi-structured interviews with SCM professionals. Communication and stakeholder management, clear in the literature. Secondly, we evaluate the importance of ten success factors for SCM projects using project objectives, objectives, support with by project project sponsor and senior management, and the internal organization of semi-structured interviews SCM professionals. Communication and stakeholder management, project support by sponsor and senior management, and the internal organization of semi-structured interviews with SCM professionals. Communication and stakeholder management, clear clear the project team appear to be the most relevant success factors. This provides a clear recommendation for project objectives, support by project sponsor and senior management, and the internal organization of the project team appear to be the most relevant success factors. This provides a clear recommendation for project objectives, support byinproject sponsor and senior management, and the internal organization of managers of SCM projects practice on which which factors to focus. Additionally, we find that the the project team appear to be the most relevant success factors. This provides a clear recommendation for managers of SCM projects in practice on factors to focus. Additionally, we find that the the project team appear to be the most relevant success factors. This provides a clear recommendation for importanceofgiven given toprojects the success success factors on partially depends on focus. the organizational organizational affiliations of the the managers SCM in which factors to Additionally, we that importance to the factors partially depends on the affiliations of managers of with SCMcertain projects in practice practice on which factors to focus. Additionally, we find find that interviewees, differences between industrial enterprises and service providers. Copyright © importance given to success partially depends on organizational affiliations of interviewees, with certain between industrial enterprises service providers. Copyright © importance given to the the differences success factors factors partially depends on the theand organizational affiliations of the the 2019 IFAC interviewees, with certain differences between industrial enterprises and service providers. Copyright 2019 IFAC © 2019, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved. interviewees, with certain differences between industrial enterprises and service providers. Copyright © © 2019 IFAC Project Management, Supply Chain Management, SCM Project, Success Factors 2019 IFAC Keywords: Keywords: Project Management, Supply Chain Management, SCM Project, Success Factors Keywords: SCM Keywords: Project Project Management, Management, Supply Supply Chain Chain Management, Management, SCM Project, Project, Success Success Factors Factors value of the solution or the adherence to project project schedule schedule and and value of the solution or the adherence to 1. 1. INTRODUCTION INTRODUCTION budget. Therefore we consider it worthwhile to investigate value of the solution the to and budget. weor it worthwhile toschedule investigate value of Therefore thewhich solution or consider the adherence adherence to project project schedule and 1. the factors contribute to the theit success success of SCM SCM projects. 1. INTRODUCTION INTRODUCTION Today most most companies companies acknowledge the the concept concept of of supply supply the budget. Therefore we consider worthwhile to investigate factors which contribute to of projects. Today acknowledge budget. Therefore we consider it worthwhile to investigate chain management (SCM) and leverage leverage it as aa means means for the factors contribute to of projects. Today most companies acknowledge the concept of chain management (SCM) and it as for the factors which which contribute to the the success successsuccess of SCM SCMfactors projects.for Numerous studies have investigated Today most companies acknowledge the concept of supply supply gaining competitive advantage. SCM can be understood as Numerous studies have investigated success factors for chain management (SCM) and leverage it as a means for gaining competitive advantage. SCM can be understood as project management in general. It has become clear that that chain management (SCM) and leverage it as a means for Numerous studies have investigated success factors for project management in general. It hassuccess becomefactors clear the “cross-department and cross-enterprise cross-enterprise integration and Numerous studies have investigated for gaining competitive advantage. SCM can be understood as the “cross-department and integration and differentmanagement types of projects projects requireIt different different approaches to gaining competitive advantage. SCM can be understood as project in general. has become clear that different types of require approaches to coordination of material, information and financial flows to project management in general. It has become clear that the “cross-department and cross-enterprise integration coordination of material, information and financial flowsand to project management (Müller and Turner 2007) and that the “cross-department and cross-enterprise integration and different types of projects require different approaches to project management (Müller and Turner 2007) and that transform andofuse use the SC SC information resources in in and the most most rational way different types can of vary projects require different approaches to coordination material, financial flows to transform and the resources the rational way success factors for different different project types types (Dvir etthat al. coordination of material, information and financial flows to project management (Müller and Turner 2007) and success factors can vary for project (Dvir et al. along the entire value chain, from raw material suppliers to project management (Müller and Turner 2007) and that transform and use the SC resources in most way along the entire chain, from raw material suppliers to 1998). So far only little research has been conducted on the transform and usevalue the resources in the the most rational rational way successSo factors can vary different types (Dvironet al. 1998). far only little for research hasproject been conducted customers.” (Ivanov et SC al. 2017, p. 5) 5)raw factors can vary for different project types et the al. along the the entire entire value chain, from material suppliers suppliers to to success customers.” (Ivanov et al. 2017, p. success factors for SCM SCM projects. This paper aims(Dvir at closing closing along value chain, from raw material 1998). So far only little research has been conducted on the success factors for projects. This paper aims at 1998). So far only little research has been conducted on the customers.” (Ivanov et al. 2017, p. 5) this research gap by providing insights to the theaims factors which customers.” et al. 2017, p. 5) In practice, practice, (Ivanov SCM comprises comprises both ongoing activities activities such such as as this success factors for SCM projects. This paper at research gap providing insights to factors which In SCM both ongoing success factors forby SCM projects. This paper aims at closing closing project managers need to address to turn their SCM project inventory control and production scheduling, and tasks with this research gap by providing insights the which project managers need to address to turnto SCM project In practice, SCM comprises both ongoing activities such as inventory control production scheduling, and tasks with gap by providing insights to their the factors factors which In practice, SCM and comprises both as ongoing activities such as this into aaresearch success story. project characteristics, such distribution network project managers need to address to turn their SCM project into success story. inventory control and production scheduling, and tasks with project characteristics, such as distribution network project managers need to address to turn their SCM project inventory control and production scheduling, and tasks with optimization or tendering tendering of ofsuch freightasservices services (Fig. (Fig. 1). into success story. project optimization or freight into success story. The aapaper paper is structured structured as follows: follows: In In section section 22 we we provide provide an an project characteristics, characteristics, such as distribution distribution1). network network The is as optimization or tendering of freight services (Fig. 1). overview of related studies on SCM SCMInprojects. projects. Inwe section 3 we we optimization or tendering of freight services (Fig. 1). The paper is structured as follows: section 2 provide an overview of related studies on In section 3 The paper on is structured as follows:ofInthe section we provide an elaborate our understanding understanding term 2“SCM “SCM project” overview of related studies on SCM projects. In section 3 we elaborate on our of the term project” overview of related studies on SCM projects. In section 3 we and propose comprehensive definition of“SCM this term. term. In elaborate on our understanding of the term project” and propose aa comprehensive definition of this In elaborate on our understanding of the term “SCM project” section 4 we analyse the meaning of project success and and propose comprehensive definition of this term. In section 4 we aaanalyse the meaning of project success and propose comprehensive definition of this term.and In discuss the main successthe factors which have been detected for section 4 we analyse meaning of project success and discuss the main success factors which have been detected for section 4 we analyse the meaning of project success and general project management. Inwhich section we detected present our our discuss the the main management. success factors factorsIn have55 been been for general project section we present discuss main success which have detected for empirical study on the main success factors for SCM general project management. In section 5 we present our empirical study management. on the mainIn success factors for SCM general project section 5 we present our projects. The The results are based on the findings findings from semiempirical study on the main success factors for SCM projects. results based on the semiempirical study on are thewith main success factors from forFinally, SCM structured interviews SCM professionals. projects. The results are based on the findings from semistructured interviews with SCM professionals. Finally, projects. The results are based on the findings from semisection provides conclusion and professionals. discusses implications implications structured interviews with Finally, section 66 provides aa conclusion and discusses structured interviews with SCM SCM professionals. Finally, for practitioners and academics. section 6 provides a conclusion and discusses implications for practitioners and academics. section 6 provides a conclusion and discusses implications for for practitioners practitioners and and2.academics. academics. RELATED WORKS WORKS 2. RELATED Fig. 1. Classification of SCM activities Fig. 1. Classification of SCM activities 2. 2. RELATED RELATED WORKS Despite the the vast vast body body of literature literatureWORKS on SCM SCM (e.g. (e.g. Chopra Chopra and and Fig. Despite of on Fig. 1. 1. Classification Classification of of SCM SCM activities activities Meindl 2016, Simchi-Levi et al. 2008) only little research is Experience has shown that many SCM projects fail to deliver Despite 2016, the vast vast body of of literature literature on SCM SCM (e.g. Chopra and Simchi-Levi et al. 2008) only (e.g. littleChopra researchand is Experience has shown that many SCM projects fail to deliver Meindl Despite the body on available on SCM projects. There is not even consensus on the promised results, e.g. regarding the customer’s expected Meindl 2016, 2016, Simchi-Levi etThere al. 2008) 2008) only little researchon is on SCM projects.et is not even consensus Experience has shown that many fail deliver the promised theprojects customer’s Meindl Simchi-Levi al. only little research is Experience hasresults, showne.g. thatregarding many SCM SCM projects fail to toexpected deliver available the promised promised results, results, e.g. e.g. regarding regarding the the customer’s customer’s expected expected available available on on SCM SCM projects. projects. There There is is not not even even consensus consensus on on the
2405-8963 © 2019, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved. Copyright 2019 IFAC 158 Peer review© of International Federation of Automatic Copyright ©under 2019 responsibility IFAC 158Control. 10.1016/j.ifacol.2019.11.168 Copyright © 2019 IFAC 158 Copyright © 2019 IFAC 158
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the terminology, with some authors using the term “supply chain project” and others referring to “supply chain management projects”. In addition, in most cases an explicit definition of the terms is missing. The authors show substantial differences in their understanding of these projects, with most authors focusing on a narrow field of what we consider as SCM projects.
Ross (1998) acknowledges the presence of projects in the field of SCM and elaborates on supply chain quality management (SCQM) projects, which “define several key high-impact actions that will provide the channel with the desired result.” (Ross 1998, p. 280) 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 define supply chain projects “as dyadic activities between existing alliance partners that have already established a relationship.” (Brinkhoff et al. 2015, p. 181) In the sequel they mention that supply chain projects can also include more than two enterprises.
The overview of related works in section 2 shows that a universal understanding of the terms “supply chain project” and “SCM project” seems to be lacking. The definition proposed by Brinkhoff et al. (2015) excludes SCM activities within one single enterprise, which are explicitly mentioned as SCM tasks both in the definition provided by Ivanov et al. (2017) and in the SCM tasks proposed by Ayers (2006). In our view SCM projects need not be started by the company headquarters, but can also be initiated by regional divisions and even by single sites, for example if we consider a regional warehousing tender. Therefore, in the following we develop a more comprehensive definition of the term.
Ayers (2006) suggests five major management tasks for SCM, namely designing supply chains for strategic advantage, implementing collaborative relationships within the enterprise, forging supply chain partnerships with outside companies, managing supply chain information, and removing cost from the supply chain. Ayers (2010) proposes project templates for accomplishing these tasks in the form of projects, but he does not provide an explicit definition of the term “supply chain project”.
A project can be defined as a temporary initiative with a defined start and end point, which produces a unique result (see e.g. Verzuh 2016, Project Management Institute 2017).
Kim and Nguyen (2018) focus on construction supply chains and analyse the impact of the relationship between the partners on project performance. They conclude that collaboration in the supply chain, support and commitment to the supply chain, and sharing of benefits and risks have a positive impact on the construction project’s performance.
Based on the definition of SCM proposed by Ivanov et al. (2017) and the five management tasks for SCM suggested by Ayers (2006), we propose the following definition: A supply chain management project is an activity with a unique deliverable and a defined start and end point, which focuses on the intra-company and inter-company integration and coordination of material, information and financial flows, or on removing cost from the supply chain.
Kilger (2015) suggests an approach for the definition of a supply chain project, which comprises three phases. Kilger (2015) does not provide an explicit definition of the terms “supply chain project” and “SCM project”, but he points out that the “goal of SCM projects is to improve competitiveness of the supply chain” (Kilger 2015, p. 281), and that SCM projects are started by the company headquarter.
This broad understanding of SCM projects comprises SCM activities between two partners in an existing alliance as investigated by Brinkhoff et al. (2015), and also allows for the consideration of projects in which new alliances are forged. Also the selection and implementation of APS in supply chains can be subsumed here, and many other initiatives within supply chains which can be pursued by one single supply chain partner or by collaborations of different enterprises.
Wetterauer and Meyr (2015) focus on the implementation of supply chain projects and outline five major implementation phases. Also Wetterauer and Meyr (2015) do not provide an explicit definition of the term “supply chain project”. Both Kilger (2015) and Wetterauer and Meyr (2015) focus on projects including the selection and implementation of Advanced Planning Systems (APS). Wetterauer and Meyr (2015) point out that “the successful implementation of the selected APS is the obvious goal of any organization that has decided to go for a supply chain project.” (Wetterauer and Meyr 2015, p. 317)
4. SUCCESS FACTORS IN PROJECT MANAGEMENT In order to understand success factors for SCM projects, an understanding of what is meant by the success of these projects is required. For decades project success has been defined by the triple-constraint of delivering the project on time, within budget, and with the desired quality or performance (Verzuh 2016, Kerzner 2017). Since this “internal definition of success” (Kerzner 2018, p. 28) has certain limitations, meeting the stakeholders’ expectations on the project’s value has been included in more recent definitions of project success (Verzuh 2016).
Wei et al. (2007) present a selection framework for SCM projects. In their study they also refrain from defining the term “SCM project” explicitly, but focus on the implementation of IT systems for SCM. They clarify that a “successful SCM implementation project involves selecting a suitable SCM system and cooperative SCM system vendor, implementing the selected system, managing the supply chain member relationships, and examining the practicality of the system.” (Wei et al. 2007, p. 627)
Using this understanding, we define the success of an SCM project as the completion of the project on time, within budget, and at the desired quality or performance, such that
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the project deliverables fulfil the stakeholders’ value expectations.
Party Logistics Providers (3PLs) and one from a provider of supply chain planning solutions. Two interviewees had more than ten years of experience with SCM projects, six had between five and ten years of experience and two had four years of experience at the time of the interview.
Project success factors are elements of a project which influence project success and which themselves can be influenced by the project team (see e.g. Müller and Turner 2007, Dvir et al. 1998). These success factors for general project management have been studied intensively over the past decades. Success factors that keep coming up in the literature include (see e.g. Pinto and Selvin 1987, Dvir et al. 1998, Zwikael and Globerson 2006, Verzuh 2016, Kerzner 2018):
Clear project objectives
Constant and effective communication
Support from senior management
Setup and motivation of the project team
Adequate resources
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Table 1. Overview of potential success factors ID 1 2 3 4 5 6 7
There are further factors mentioned in some of the above studies which can contribute to project success, e.g. controlled project scope, realistic project plans, and customer involvement.
8 9 10
5. ANALYSIS OF SUCCESS FACTORS FOR SCM PROJECTS
Success Factor Appropriate communication and stakeholder management Availability of sufficient resources Clarity of project objectives Experience of project manager with general project management Experience of project manager with SCM projects Experience of project team members with project work Organizational setup of project team: External project team Organizational setup of project team: Internal project team Support of project sponsor and senior management Utilization of a project management methodology
During the interviews the participants were asked to rate the importance of each of the proposed factors for project success, using the ratings “high”, “medium” and “low”. Moreover, the participants were asked to add any other factors which they felt relevant for the success of their SCM projects.
In their study Brinkhoff et al. (2015) specifically focus on success factors for supply chain projects. They distinguish between project-level and relationship-level factors, and investigate the impact of three project-level success factors, namely communication, employee commitment and management commitment, and the relationship-level factors trust and asymmetric dependence. Our hypothesis is that apart from the three project-level factors considered by Brinkhoff et al. (2015) there are further factors which have an impact on SCM project success. In the following we will test this hypothesis using the results from semi-structured interviews with SCM professionals.
To derive a final score for each factor, we applied a 3-point Likert scale and assigned the value of 3 to ratings of “high”, 2 to ratings of “medium”, and 1 to ratings of “low”. For each factor we calculated the total score by aggregating the scores of the individual ratings, such that a maximum total score of 30 and a minimum of 10 could be reached. We split this range evenly and considered factors with ratings between 30 and 24 to be highly important for project success, ratings between 23 and 17 to be of „medium“, and ratings below 17 to be of „low“ importance for SCM project success.
5.1 Methodology of Research We aim at detecting the most relevant project-level success factors for SCM projects. Based on the literature on general project management, the study by Brinkhoff et al. (2015) and our own experience in managing SCM projects, we developed a list of ten potential success factors for SCM projects (Table 1).
5.2 Results of Interviews The first important finding is that the interviewees agree that “all of these aspects absolutely contribute to project success” (Interviewee 1). However, the importance of these factors is seen differently (Table 2).
To explore the importance of these factors we conducted semi-structured interviews with SCM professionals. The participants were selected based on their involvement in SCM projects, with each participant having at least four years of experience in SCM. Email enquiries were sent to 40 experts, inviting them to participate in an interview. Thirteen confirmations were received, of which ten interviews were conducted between June 2018 and January 2019.
It can be seen that the most relevant factors for the success of SCM projects seem to be “Appropriate communication and stakeholder management” (Total score: 29) and “Clarity of project objectives” (Total score: 28), each being rated as highly relevant by nine of the ten SCM professionals. Our finding of a high importance of communication in SCM projects supports the results of Brinkhoff et al. (2015), who emphasize that “frequent and open communication between project partners is a major driver for supply chain project
Six interviewees belong to industrial enterprises and four to service providers, of which three are from different Third 160
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success.” (Brinkhoff et al. 2015, p. 196) In SCM projects it is common that several business units or enterprises collaborate, which creates a diverse portfolio of stakeholders. Therefore, communication and effective stakeholder management seems to be “definitely the base of the success of a project” (Interviewee 3) and “probably the most important skill for a project manager” (Interviewee 6). The diverse objectives of the supply chain partners involved in an SCM project usually lead to different expectations towards the outcomes of the project. In a freight tender, for example, the company issuing the tender will normally look for a reduction of freight costs whereas the incumbent logistics service providers will try to maintain their lanes without major reductions in the freight rates. Consequently, a clear understanding of and the agreement on the project objectives is crucial for project success, possibly even “the single most critical success factor” (Interviewee 6).
Table 2. Importance of success factors, sorted by score Success Factor Appropriate communication and stakeholder mgmt. Clarity of project objectives Support of project sponsor and senior mgmt. Organizational setup: Internal project team Organizational setup: External project team Availability of sufficient resources Utilization of a PM methodology Experience of project manager with SCM projects Experience of project manager with general PM Experience of project team with project work
The third factor considered highly relevant is “Support of project sponsor and senior management”, with seven ratings of “high” and an overall score of 27. In SCM projects a strong project sponsor who supports the project team is required to resolve potential conflicts between the diverse stakeholders. Without support from the sponsor and senior management, “there are always delays” (Interviewee 3), rendering the on time completion of the project, one of the components of project success, unlikely. The last highly relevant factor appears to be the organizational setup of the internal project team, with six „high“ and four „medium“ ratings, and a total score of 26. As Interviewee 3 points out, it is important “to have a team fully committed” to the project. Moreover, the team should consist of different types of team members, “not only leaders”, as emphasized by Interviewee 8. The factors with medium importance for the success of SCM projects appear to be the organizational setup of the external project team, the availability of sufficient resources, the utilization of a specific project management methodology, and the experience of the project manager both with SCM projects and with general project management. 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.
Count of Ratings High Medium Low 9 1 0
Total Score (Importance) 29 (High)
9
0
1
28 (High)
7
3
0
27 (High)
6
4
0
26 (High)
5
3
2
23 (Medium)
4
5
1
23 (Medium)
3
5
2
21 (Medium)
3
4
3
20 (Medium)
3
3
4
19 (Medium)
1
2
7
14 (Low)
For the experts from industry “Appropriate communication and stakeholder management” is the most important success factor, ranked “high” by all six interviewees. The second place is taken by “Support of sponsor and senior management” with a score of 17, followed by “Clarity of project objectives” with a score of 16. The least important factor is “Experience of project team members with project work”, with four ratings of “low” and a total score of 9.
Additional success factors that were mentioned by the interviewees include “Scope and time management” (mentioned three times), “Honesty and trust” (also mentioned three times), “Formalized change control” (mentioned once), “Buffers and backup plans” (mentioned once), and “Documentation and lessons learned” (also mentioned once).
For the service providers, the most important success factor appears to be “Clarity of project objectives”, with four ratings of “high“, followed by “Appropriate communication and stakeholder management” and “Organizational setup: Internal 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.
5.3 Comparison of Views: Industry vs. Service Providers Further interesting insights result from the comparison of the evaluations between the SCM professionals from industry and those affiliated with service providers.
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It is interesting to take a closer look at the differences between the most important success factors in both groups. Our interpretation is that for service providers, it can be even more important to agree on clear project objectives with their supply chain partners from industry, who are usually their customers. In our experience, unclear project objectives can lead to misunderstandings, which in turn can result in unsatisfied customers and substantial rework on the service provider’s side. Interviewee 8, a senior manager of a 3PL with more than 20 years of experience in SCM projects, supports this interpretation by pointing out that for him clarity on project objectives has the highest impact on the success of SCM projects.
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which factors should be the main focus of project managers responsible for SCM projects. As directions for future research we recommend to carry out a survey with a larger sample size, and with the additional success factors mentioned by our interviewees added to the list. Moreover, it would be interesting to cluster SCM projects into different categories, e.g. based on their decision areas within the supply chain, such as SC network optimization or the integration of a new SC partner, and investigate the main success factors for these different project types. REFERENCES Ayers, J.B. (2006). Handbook of Supply Chain Management. 2nd edition, Auerbach Publications, Boca Raton. Ayers, J.B. (2010). Supply chain project management. A structured collaborative and measurable approach. 2nd edition, CRC Press, Boca Raton. Brinkhoff, A., Özer, Ö., and Sargut, G. (2015). All You Need Is Trust? An Examination of Inter-organizational Supply Chain Projects. Production and Operations Management, 24 (2), 181-200. Chopra, S. and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. 6th edition, Harlow. Dvir, D., Lipovetsky, S., Shenhar, A., and Tishler, A. (1998). In search of project classification: a non-universal approach to project success factors. Research Policy, 27, 915-935. Ivanov, D., Tsipoulanidis, A., and Schönberger, J. (2017). Global Supply Chain and Operations Management. A Decision-Oriented Introduction to the Creation of Value. Springer, Cham. Kerzner, H. (2017). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 12th edition, John Wiley & Sons, Hoboken, New Jersey. Kerzner, H. (2018). Project Management Best Practices Achieving Global Excellence. 4th edition, John Wiley & Sons, Hoboken, New Jersey. Kilger, C. (2015). The Definition of a Supply Chain Project. In Stadtler, H., Kilger, C., and Meyr, H. (eds.), Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies, 281-300. 5th edition, Springer, Berlin, Heidelberg. Kim, S.-Y. and Nguyen, V.T. (2018). A Structural model for the impact of supply chain relationship traits on project performance in construction. Production Planning & Control, 29 (2), 170-183. Müller, R. and Turner, R. (2007). Success Criteria and Project Success by Type of Project. European Management Journal, 25 (4), 298-309. Pinto, J.K. and Selvin, D.P. (1987). Critical factors in successful project implementation. IEEE Transactions on Engineering Management, 34 (1), 22-27. Project Management Institute (2017). A Guide to the Project Management Body of Knowledge. 6th edition, Project Management Institute, Newton Square, Pennsylvania. Ross, D.F. (1998). Competing Through Supply Chain Management: Creating Market-Winning Strategies Through Supply Chain Partnerships. Springer, New York.
6. CONCLUSIONS In this paper we proposed a definition of the term “supply chain management project”, which is more comprehensive than other definitions found in the literature. Moreover, we tested the importance of ten factors for the success of SCM projects. We found that all ten proposed factors have certain relevance for the success of SCM projects, with communication and stakeholder management, clear project objectives, support by project sponsor and senior management, and the internal organization of the project team being the most relevant success factors. These results have implications both for practitioners and for academics pursuing research in this field. 6.1 Implications for Practitioners From the analysis we learned which factors are most relevant for the success of SCM projects in practice. Therefore managers of SCM projects should focus their efforts on influencing these success factors in a favourable way. We also learned that project manager’s experience with SCM projects and with general project management have a medium impact on SCM project success and appear at the bottom of the list. This finding implies that also junior managers of SCM projects can compensate their lack of experience and deliver successful SCM projects by focusing on the four highly relevant success factors. 6.2 Implications for Academics Our finding that the most important success factors for SCM projects include communication and stakeholder management, support from sponsor and senior management and organizational setup and commitment of the project team are in line with the findings by Brinkhoff et al. (2015). However, Brinkhoff et al. (2015) do not consider clarity of the project objectives in their study, which turned out to be the second most important success factor for SCM projects in our analysis. This shows that our hypothesis was right and implies that further success factors deserve consideration in future research projects in this field. We are aware that with ten interviewees our sample size is limited. Therefore our results can only be a first indication 162
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Simchi-Levi, D., Kaminsky, P., and Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies. 3rd edition, McGraw-Hill, New York. Verzuh, E. (2016). The Fast Forward MBA in Project Management. 5th edition, John Wiley & Sons, Hoboken, New Jersey. Wei, C.-C., Liang, G.-S., and Wang, M.-J. J. (2007). A comprehensive supply chain management project selection framework under fuzzy environment. International Journal of Project Management, 25 (6), 627-636. Wetterauer, U. and Meyr, H. (2015). The Implementation Process. In Stadtler, H., Kilger, C., and Meyr, H. (eds.), Supply Chain Management and Advanced Planning Concepts, Models, Software, and Case Studies, 317-337. 5th edition, Springer, Berlin, Heidelberg. Zwikael, O. and Globerson, S. (2006). From Critical Success Factors to Critical Success Processes. International Journal of Production Research, 44 (17), 3433–3449.
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