You're managing a project with external vendors. How do you handle unexpected resource demands?

Handling unexpected resource demands in a project involving external vendors requires a strategic approach to ensure smooth operations. Document the Issue: Keep detailed records of the unexpected resource demands and how they were managed.

In a typical vendor registration and selection process, the vendor's supply capacity and lead time to fulfill demand are recorded. If this information is not being captured, the vendor registration process needs to be revised. Assuming this information is available and there is a fluctuation in resource demand, the Project Manager (PM) should consider options such as splitting orders if there are capacity or delivery lead time issues. If only one vendor is registered and available, the PM should explore alternatives like ensuring smooth delivery based on resource consumption levels and opting for partial deliveries to minimize schedule impact.

The situation requires a strategic and flexible approach. Here's how I would proceed: Step 1: Assess the situation, seek to understand the cause for the new demands and evaluate the impact to the project. Step 2: Communicate with vendors the impacts to the current state and formulate a plan to minimize risk to the highest priority deliverables. Step 3: Coordinate with resource managers to align the team based on the new priorities. Step 4: Revise project plan and timelines. Step 5: Execute Risk Management and Contingency Planning for further resource demands or delays. Step 6: Stakeholder Communication, informing them of the new requirements, impact to scope and budget, and the new plan forward. Step 7: Execute and monitor.

Just in addition to understanding the vendor's performance, operational process and capacities, regular project communications are key to have a proper management of risks and issues related, keeping a close eye on those vendor related. This is also important to help create an integrated response plan when/if the addional resources are needed.

Having a robust “what if” debate can minimize unexpected impacts, but just as important is how the team responds to those demands. It is imperative to address risk mitigation with your team and especially the vendors. Emphasize contingency planning for unexpected events and focus on contractual terms to ensure the vendor can rise to prevent any gaps in availability for a proper level of service. Your vetting of potential vendors should include determining the ability to provide resources on an ad hoc and flexible basis. This element should be a major factor in your decision to select the vendor. Finally, ensure your risk management plan has plenty of collaboration with your entire team. Your plan will have a greater chance at success.