1. Supply chain Management Constrains in project and operation environment in Sudan White Nile Sugar Project /Company WNSP/C KENANA Engineering & Technical Services KETS Prepared By : Eng. Disougie Elwagie, PMP, PRINCE2 practitioner Supply Chain Manager, White Nile Sugar Project Senior member PMO, White Nile Sugar Project KENANA Engineering & Technical Services, KETS

2. Supply chain constrains Supply chain Project / Operations Sudan WNSP/C

3. 1.KETS supply Chain approach 2.Introduction to WNSP/C 3.Why Sudan 4.Why WNSP/C 5.Supply Chain Main constrains 6.Constrains in projects environments 7.Constrains in operation environments 8.Supply Chain & Risk Management 9.Controls 10. Why supply Chain Contents

4. KETS supply chain approach Aligning supply chain with programs and projects Management approaches Aligning supply chain with clients (company) benefits

5. Location: 170 Klm southern Khartoum on the east side of the White Nile River Total Area 160,000 Feddan (Acre) Planted area 130,000 Feddan – Sugar cane 105,000 Feddan – Cash crops 20,000 Feddan – Forests 5,000 Feddan Factory Crushing capacity 24,000 Tons/day Sugar Production 450,000 tons annum Ethanol Production 60,000,000 Liter/ year Power Production 104 MW Project cost1.1 billion USD Introduction to WNSP/C

6. Company – Board of Directors – General Manager – Departments (Finance, Supply Chain, HR, internal Audit etc…) Project – Project Executive Director – Tasks Manager (agric, irrigation, factory, civil, etc…) – PMO (planning, contract Administration, budget control) WNSP/C Management Model

7. Procurement Management (materials, services, machineries etc…) Logistics Management (clearance, transportation and handling) Stores Management Warehouses Management (final products) Others ( Government Bodies Management such as custom, SSMO, free Zone authorities, ports authorities, investment authorities, ministries of industry, agric, finance etc…) WNSP/C supply chain Management

8. SCM Scope Procurement Logistics Warehouses Stores Government Liaisons

9. Development country Political and Economical difficulties Sudanese business nature Long lead process in private and government sector New approach in Sudan (Its Practiced but Not fully developed and utilized) Why Sudan

10. Mega project / company Sugar business nature (integrated agro industrial) Normal Projects difficulties (scope, time, cost and quality) Why WNSP/C

11. knowledge (scope) Knowhow (experience) Procurement Common practices (small, medium and major procurements) Logistics Common practices (delivery terms, concessions, etc…) Stores and warehouses Common practices Internal Interactions External Interactions Supply Chain Main constrains

12. SCMD COMPANY PROCEDURES contract administration BUDGET/ FUNDS Project Management PROCESS VENDORS MANAGEMENT GOVERNMENT AND OTHER STAKEHOLDERS SCMD

13. Scope Management Time Management Cost Management Funds Managements Variation and change Management Constrains in project environment

14. External Interactions mainly with – Government – Contractors Internal Interactions with projects Managers – Time – Scope – Quality Constrains in project environment

15. Operation Management – Value of money – Value of goods or services – Delivery value – value of inventory Planning Management – Ordering time – Specifications – Delivery methods Constrains in operation environment

16. Cost Management – Value of money – Quality – Quantity Internal Interactions with – Head of Departments – Staff External Interactions with – Government (taxes, VAT, concessions, etc…) – suppliers (Quality, quantity, delivery terms) Constrains in operation environment

17. Supply chain is a major Risks trigger – Cost (value of money Vs budget) – Time (delivery Vs schedule/s) – Quality (Quality Vs Scope) – Quantity (Stocks Vs needs) – Delivery methods (delivery Risks (DDU)) But in same time supply chain could be an excellent risk mitigation and a control tool Supply Chain & Risk Management

18. 1.Supply chain operating expense as a % of sales. 2.Value and % of spend with preferred suppliers. 3.Procurement operating expense as a % of procurement spend. 4. Supply Chain cost savings as a % of spend. 5.Logistics and transport cost per unit. 6.Customer % On Time and in full (OTIF) delivery. 7.Value of material shrinkage and obsolescence. 8.Inventory turns. 9. Value of stock count variance (Book Vs Physical count). 10.% of staff that have passed accredited training programs Some potential supply Chain performance controls

19. In Projects & Operation – Better Strategic planning – Better Financial performance – Better Resources utilization – Better Risk management Why supply chain ?

20. Institute for Supply Management™ (ISM) defines supply management as the identification, acquisition, access, positioning and management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives. Supply management activities include: 1.Purchasing/procurement 2.Contract development and administration 3.Negotiations 4.Transportation and logistics 5.Physical distribution and warehousing 6.Inventory control and management 7.Strategic planning / sourcing 8.Product / service development 9.Manufacturing 10.Problem solving 11.Relationship management 12.Supplier evaluation 13.Economic forecasting 14.Materials management Supply Chain Management

21. Questions & comments