Call Us: US - +1 845 478 5244 | UK - +44 20 7193 7850 | AUS - +61 2 8005 4826

functional improvements on the IT levels

From the perspective of the factory, there may be an upside to anticipating production: aligning with the production of similar but unrelated projects. But this can create huge risks for a project supply chain. The size and complexity of the projects, along with the fact that they are often negotiated with public institutions, means that things can change, even after the order has been signed. If production is anticipated, the supply risks generate huge obsolete inventory risks. Given the inflated lead times, the chance of this occurring is higher than in make-to-stock supply chains, which are under constant pressure to be reactive.