Case Study: Delay Caused by Supply Chain Disruptions on New Orleans Levee Project (New Orleans, LA, 2013)

Project Overview
• Name: New Orleans Levee System Upgrade
• Location: New Orleans, Louisiana
• Year: 2013
• Project Size: $600 million
• Scope: Strengthening and rebuilding levees and flood barriers
• Lead Agencies/Contractors: U.S. Army Corps of Engineers /

Category of the Issue, Problem, or Challenge
• Supply Chain
• Project Delay

Summary of the Issue, Problem, or Challenge
Disruptions in the supply of key materials, including specialty concrete and steel, caused prolonged project delays.

Root Cause Analysis

• Single Supplier Dependence: Overreliance on a limited number of suppliers.
• Transportation Bottlenecks: Port delays and logistics issues impacted material delivery.
• Market Demand Spikes: Regional construction booms created material shortages.
• Lack of Inventory Buffers: Minimal on-site stock of critical materials.

Impacts Due to the Issue, Problem, or Challenge

• Delay of 6 months.
• Increased costs due to expedited shipping and substitute materials.
• Contractor claims related to schedule impacts.

Corrective Actions Taken

1. Diversified supplier base to reduce risk.
2. Improved supply chain visibility and tracking.
3. Increased on-site material inventories as buffers.
4. Coordinated logistics planning with suppliers and transport agencies.

Lessons Learned

• Supply chain robustness is key to schedule adherence.
• Early procurement and inventory buffers mitigate disruptions.
• Active supplier and logistics management improve reliability.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Is the supply chain diversified and robust?
• Are material inventories adequate for critical items?
• Is logistics and supplier communication proactive and effective?